Carriers and Content Providers Must Strike a Balance to Drive Growth in the US Mobile Media and Entertainment Market, Says Analysys.

WASHINGTON -- Carriers' 3G network upgrades are laying the foundation for the rapid development of mobile media and entertainment (MME) services in the US, but carriers and content providers face a considerable challenge to build a sustainable position in this new mobile Internet market, says Analysys, the global advisers on Telecoms, IT and Media (www.analysys.com).

"Overly complex pricing models for MME services, as well as carriers' reluctance to withdraw from areas of the MME value chain that do not play to their strengths, are inhibiting MME market growth," according to Alexandra Rehak, US Research Director at Analysys, and lead author of a new report, Mobile Media and Entertainment Markets in the US: value chains and pricing models.

"Carriers need to determine how to maintain control of the customer experience while allowing innovation, personal expression and community building. Verizon's recent decision to open its network to third-party applications suggests that US carriers are starting to realize that they cannot do it all themselves," says Rehak.

The report also examines the impact of online service providers and equipment vendors on the MME value chain, including the likes of Apple, Facebook, Google and Nokia.

Key findings of the report include:

* Carriers are likely to continue to develop strong, own-brand portals and on-deck MME service offerings as part of their efforts to maintain customer ownership and loyalty, and maximize revenue.

* Complex pricing and users' difficulty in discovering services are inhibiting take-up of MME offerings.

* There is a variety of business models and revenue share arrangements for each of the MME service types, and revenue is often shared among so many parties that content providers find it impossible to achieve a viable revenue stream solely from shares of end-user payments.

* The most successful strategy for all MME market players will be to focus on a few specific areas of the value chain rather than trying to provide everything from content production through to billing and delivery.

This new report examines the ways in which service value chains and end-user pricing models are developing in the US MME market. It is designed to help market participants and observers understand revenue structures, business models and pricing for MME services and content, and to position themselves to exploit the emerging opportunities in MME. The specific services that the report discusses in detail are: music, TV and video, social networking and user-generated content, games, adult services and personalization.

The report is available to purchase online at http://research.analysys.com/store, priced at $3000 or PS1500.

To arrange and interview with the author, or for a copy of the report executive summary, email Gina Ghensi, [e-mail] or telephone [phone].

Analysys provides strategy and management consultancy, information services and start-up support throughout the telecommunications, IT and media sector.