By Jo Best, 29 April 2004 17:20
NEWS Consumers will pay for mobile content, according to new research – but only when they've got no choice.
Handset manufacturer Nokia has been investigating how keen consumers really are on paying for mobile content and exactly what data they want on their phones – and have turned up a mixed bag of results.
The research commissioned by Nokia and carried out by NOP World across nine countries found that consumers would pay up to 28 per cent more for mobile content but the medium is still more important than the message.
It seems that downloading songs and video reviews was received lukewarmly – 'why download when out doing your shopping when you can do it at home?' was the thinking – but browsing film and entertainment listings got the thumbs up with consumers who want to use the services when on the move.
The total cost that users are prepared to pay for their mobile content averages out at around €7.4 but depends largely on the age bracket – young men between 16 and 21 are the most ready with the cash to lavish on mobile content, like sport and games.
While the idea paying for content doesn't seem to faze consumers, exactly what they pay for could prove to be a sticking point. The favoured option, chosen by 31 per cent of those questioned, was paying a subscription for unlimited use.
Most mobile operators, however, prefer a pay-per-Kb data model, which only a measly nine per cent of consumers liked.
Janne Laiho, head of end user research at Nokia, said the subscription model had obvious advantages for users. "It's a risk-free proposition for the consumer – they always know how much they will pay," he said.
While data currently makes up a relatively small proportion of operator earnings – usually around the mid-teens as an overall percentage of revenue – Nokia is confident it will grow, especially in niche markets.
Esa Harju, Nokia's director of marketing for networks, said: "The end user desire to use the service is there," but added that technology and service offering issues have to be overcome.
Operators may be put off by the research, which advises few applications will reach more than 20 per cent penetration – even big hitting services like football results got the thumbs up from 42 per cent of people.
That's not the message from the mighty Finn, though. Laiho said that data consumers are "not the average consumers. With services like gaming and sport, low interest doesn't mean lower revenue potential necessarily."
Nokia predicts the data market will be worth €70bn by 2008.
Comments
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1. Chris Jones
So I wonder how long it will be before micro-charging takes off, with consumers paying a few pence for each news article, cinema listing, film review, train information, etc.??? Surely micro-charging has the potential to significantly increase ARPU with a low price barrier at the "point of sale".
2. Alfred Lehmann
I have two daughters one 15 one 11. The 15 year old knows exactly what phone she likes and what phone she doesnt. She likes the Motorala flip phones with camera and text messaging and though Nokia has a new text messaging phone with camera the 6820 my 15 year old wants the V600 by motorola.Why? I am a share holder of Nokia however I just do not think Nokia is valuing the target ages and really listening to our youth. If Nokia wants to regain market share and become a viable company and the future they must ask people the simple question do you like our phone?. More sampling of consumers would be very helpful in designing product lines that people really want. My daughter is a very popular girl at school and all of her friends like the Motorala product lines. My daughter currently has the Samsung X426. She doesnt like its constant dropped calls. I have a Nokia 3280 and have had it for a long time but I like flip phones also. I know Nokia makes quality phones that is why i am a share holder in the company. Interior components seem to be very reliable and hardly any problems with function - very user friendly menu. However Nokia should look at its youth, they are quite smart and fast to decide what they like and what they do not.