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A increasing number of small
mobile content providers are using a new, much more direct
method of getting their products into the hands of customers.
These companies have discovered the benefits
of selling their wares directly to customers through brick-and-mortar
stores, and offline promotions. San Jose-based PlayPhone Inc.,
for example, is selling $5 to $20 prepaid gift cards towards
mobile games, ringtones, wallpapers, and music videos, via
retail channels, rather than relying on distribution deals
with carriers.
This growing "off-portal" approach
allows for a much higher profit margin for the content providers,
and currently accounts for about one third of all digital
content sales. The business model as a whole reportedly generated
a total of almost $1.4 billion globally in 2005.
(Originally published by TeleClick.ca on
April 13, 2006)
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