Report Finds Limited Interest in Premium Mobile Services

A report just published by JupiterResearch makes unpleasant reading for those in the mobile marketing business. It concludes that the majority of Europeans are uninterested in paying for any mobile content or service, other than messaging. The report, ‘European Mobile Services Consumer Survey, 2006’, found that just 32% of European mobile users are willing to pay for mobile content and services beyond basic messaging.
Beyond voice, the report says, Europeans primarily use their phones for messaging, with 79% of European mobile users using SMS, followed by MMS (28%). Almost a third also take pictures, but current adoption of premium content is skewed towards younger demographics and has relatively niche adoption across all mobile users. Despite large revenues driven by high frequency of purchase, ring tones, logos, animations, and games all register less than 15% adoption. Just 8% of Europeans watch mobile video, though this rises to 12% in the UK, due to a higher installed base of video-enabled phones and the promotion of innovative services such as video shortcodes and made-for-mobile content.
Adoption is not being held back by the lack of an installed base of suitable handsets, the report finds. Only a fraction of mobile subscribers with handsets capable of receiving services such as MMS, game downloads and the mobile Internet have adopted and paid for corresponding services. Close to half of all mobile handset owners are unwilling to pay for premium services and content, regardless of handset type.
“Return on investment will take significantly longer to achieve than many companies expect.” says report author and JupiterResearch Mobile Analyst, Thomas Husson. “Facing price pressure on voice, mobile operators now have to move beyond the lucrative youth market to recoup their investment in 3G networks.”
The complete findings of the report are immediately available to JupiterResearch clients here. For more information on the report or for local figures on your national market contact Thomas Husson, Mobile Analyst, JupiterResearch on +33 1 40 90 31 92 or by email:thusson@jupitermedia.com

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Comments

[gps]

Sounds like the "giddy" stage of "wow" I can do this on my mobile is reaching a saturation point. Fun is fun, but paid services need to offer something more. They need to mature, focus on user experience, have a higher degree of standardization across providers and take into account bandwidth costs before they can become profitable.