
Getting on deck with off deck
I've been a staunch critic when it comes to off deck content, and I think my reasons were justified. I've heard too many stories about mobile content firms with sketchy business practices deceiving users and leaving them angry and upset about content purchases that they didn't know they had made.
But the black eye is finally lifting and the mobile content ecosystem is starting to become quite conducive to off deck firms with a solid business proposition, innovative content and a dedicated customer service team.
Thumbplay is certainly one success story worth noting. Thumbplay has managed to build a solid business in this space, which President and CEO Are Traasdahl attributes to its customer service commitment and wide-range of content. Although he admits that Thumbplay's customer acquisition costs are higher because of its dedication to service, he says that in return the company retains its customers longer.
Traasdahl praises the company's "long tail" of content. The firm adds 24,000 pieces of unique content to its site every week. While 80 percent of the content purchased from wireless carriers comes from the operators' top 10 deck placement, Traasdahl says that Thumbplay's top 20 titles generate only about 17 percent of the firm's sales. In contrast, the remaining 83 percent comes from purchases from the rest of its portfolio of unique content, which gives credence to his assertion that consumers want a large selection.
Thumbplay and other off deck success stories are causing traditional on-deck firms to aggressively eye this space. Qualcomm says its BrandXtend off portal play is beginning to see demand. The company is working with Major League Baseball and is in discussions with other firms. Mitch Oliver, vice president of solutions at BREW, says that with firms like Motricity [1] getting out of off deck, it has opened the doors to new players. And Oliver says that carriers are embracing off portal because they finally realize that they need to include as many content brands as possible to keep their mobile content business thriving. "They need to leverage the brands and their marketing budgets," Oliver says.
Yes, my off deck skepticism is lifting. I believe that the opportunity is big enough for a handful of savvy players. Traasdahl agrees. Of course, you can guess which firm he thinks will own the market. -Sue [2] ÂÂÂ
Links:
[1] http://www.fiercewireless.com/story/motricity-restructures-returns-to-its-carrier-focus/2008-03-04
[2] mailto:sue@fiercemarkets.com