News
Content revenue leakage to cost £3.2bn
Stuart O'Brien Oct 20 2005, 9:15am
Qpass is making waves once more with its research, this time estimating that the mobile content industry will lose £3.2 billion this year globally due to revenue leakage.
The content service provider, which commissioned iGillottResearch to conduct the study, says the problem could escalate to more than £10.3 billion by 2009.
In the UK market alone, losses are predicted to reach £183 million this year, rising to £731 million by 2009.
The research attributes the revenue losses to a lack of maturity in the business systems at each stage of the purchasing and delivery process, ranging from the point of purchase to billing, collection and customer care.
“The mobile industry scrambling to meet the demand for innovative new content applications and services, but billions of pounds are being lost through revenue leakage,” said Iain Gillott, founder and president of iGillottResearch. “The wireless industry will have to address this issue to maintain their growth and financial performance, just as they had to plug the holes in the wireless voice service value chain.”
Christian Lutz, general manager of Europe for Qpass, added: “The industry will increasingly be compelled to apply rigorous financial management to these revenue streams and pay close attention to the multi–billion pound problem of premium services revenue leakage. This is a complicated issue and one that needs to be elevated in the awareness of all participants in the premium mobile services ecosystem.”
This is the second study released by Qpass this year, following its July assertion that music samples 'shoplifted' from web portals for use as ringtones had cost the European music industry €50 million in 2004.
