Report: Mobile content use will increase if it’s free

Vendors trying to cash in on mobile content should start by giving the stuff away, according to a new white paper from Parks Associates and the think tank Entertainment Technology Center @ USC.
The mobile video market is plagued with challenges including limited bandwidth, poor penetration of video-capable handsets, a lack of interoperability and inadequate discovery tools, the firms said. Content providers should take a cue from Apple Inc.’s iTunes service, according to the white paper, and use some mobile video as a loss-leader to sell premium offerings and seed the market.
“Rather than asking, ‘How much money can we make on portable content?’, the question should be ‘How can portable content help me make money?'” authors John Barrett and David Wertheimer wrote. “Hollywood should strive to use portable platforms to generate revenues directly (through the sale of content) and also indirectly by promoting consumption via more traditional channels. The free distribution of scenes, clips and made-for-mobile content will encourage ticket sales and DVD purchases.”