|
The volume of digital content and applications used for entertainment, information and productivity purposes is on the rise. Consumers have limitless choices, and spend on digital goods and services with an increasing number of content providers. As a result, the traditional service provider risks losing "wallet share" while footing the bill for ongoing expansion and maintenance of the network capacity required to keep all of this content and these applications flowing.
In the face of these market conditions, service providers are seeking ways to incorporate digital content into their offerings for both retail and business subscribers. The service provider can differentiate itself from the content provider or app store by:
- Bundling content. Offering value-based packages to address broad segments of the market.
- Personalizing bundles. Bringing together content and applications from multiple sources.
- Offering choice. Enabling the broadest range of billing and payment options for content, drawing upon long-established commercial relationships with the consumer.
Unless the service provider has an in-house production studio or development shop, it will rely on third party partnerships with rights owners to acquire and sell the content and applications that consumers want. Managing these partnerships requires the same focus on acquisition, account management and relationship management that has always been extended by the service provider to its customers. A successful value chain is one where the service provider delivers a wide range of digital content, in conjunction with their traditional offers, and monetizes it in both directions.
|