Mobile operators could significantly boost their revenues by partnering with a music streaming service, according to the findings of a research project between Informa Telecoms & Media and Spotify.
The study claims that the rapid uptake of smartphones combined with the recent rise of streaming services like Spotify have for the first time enabled music to make a substantial impact on operators' market share, ARPU and churn.
Informa and Spotify believe that, by partnering exclusively with an existing player rather than building their own service, operators can realise these gains quickly while shutting out competitors.
"Our research shows a large Western European operator could generate millions of euros of revenue a year by partnering with a third-party music service, significantly more than they would gain from offering their own service. Add in other benefits, such as network efficiency, brand awareness and increased lifetime customer value, and the potential for such a partnership becomes very clear," said Giles Cottle from Informa Telecoms & Media. Article