MOBILE INDUSTRY TO LOSE EURO 4 BILLION A YEAR IN LOST MMS REVENUE
- User-to-user forwarding of MMS is revenue blackhole for content providers -
Oslo, Norway, 4th April, 2002, Beep Science, a leading multimedia messaging services (MMS) solution provider, today warned the worldwide mobile industry that it stands to lose in excess of EURO 4 Billion* a year in revenue if it does not protect third party MMS content.
Premium MMS content is expected to produce global revenues of EURO 31 Billion by 2006**. However, in the same way that Napster caused concerns about the free publishing of content, operators and content providers stand to lose vast amounts of much needed revenue as content is sent from one user to another.
The warning comes as operators struggle to put in place mechanisms to secure and protect branded and non branded content, as Jan Rune Hetle, CEO, Beep Science, explains: "Some operators we have spoken to are grappling with Digital Rights Management (DRM) as a means to protecting content, but this currently involves over complicated client-side software leaving the user with a WAP-like experience - something the operators wish to avoid at all costs. 'Superdistribution', where popular content spreads like wild fire from one user to another represents an opportunity for operators and the providers of content but it is currently a threat to potential revenue streams."
The superdistribution situation is so bad that Beep Science predicts that copyright concerns may cause content providers (those which design and produce MMS content) to hold back from releasing value added MMS, thus stalling the market and leaving operators without added revenue. "Simple forward lock, as currently found with ring tones and logos, simply won't work for the MMS market. Constraining the user's ability to forward MMS merely means that impulse revenue generation is wasted. What is needed is a solution which addresses these challenges." added Hetle.
Beep Sciences has launched a solution which solves the operator's problem of copyright control and forward billing issues. Called the Beep Science MMS Content Policy System (CPS). The solution enables the operator to act as a billing collector for MMS content and ensures that copyright restrictions are dictated by the content and service providers. MMS content can be charged for when end-users order or download content over MMS and when users forward and further superdistribute the chargeable content.
Notes to editor:
* To receive further information on lost revenue please contact MUSTARD PR
** According to research published by Frost & Sullivan (February 2002)
Additional research on MMS available from Jupiter MMXI (January 2002)
Additional information on Beep Science's MMS Content Policy System can be obtained by contacting MUSTARD PR.
About Beep Science AS
Beep Science is a pioneer within Multimedia Messaging Service. Our mission is to enable MMS business for the Mobile Operators and Service Providers. We provide solutions for MMS publishing and content copyright protection, together with ready-made applications that give a rapid and cost-effective start to the MMS business. The people of Beep Science have substantial knowledge and experience in MMS. The company holds numerous patents within the MMS area. We partner with the leading infrastructure and terminal vendors to guarantee the best of end-to-end solutions for our customers.
Please visit http://www.beepscience.com
Beep Science will be exhibiting at:
Mobile Entertainment, 9th-10th April 2002,
Business Design Centre,
For further information, please contact:
Andrew Durkin/Tim De Luca Smith
Tel: + 44 (0) 1753 889100
Ms. Sissel Henriette Larsen
Marketing Director of Beep Science
Tel: +47 932 88 888,
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