Cellphone users unlikely to pay for audio/video content

Cellphone users unlikely to pay for audio/video content

With the growing competition, most mobile service providers are expecting to generate enough profits from providing add on facilities like audio and video content to their customers. However, market surveys are suggesting that most mobile phone customers are reluctant to pay for these value added services.

The survey was conducted by KPMG and this might push the mobile service providers to rethink their future strategies on providing these services to their customers. Interestingly, South East Asia is one of the most advanced markets for higher end mobile phones and customers here are already displaying reluctance to pay extra.

Similar trends are expected to be noticed in the North American and European markets as the service providers are beginning to roll out these extra facilities. A survey of nearly 3,600 mobile phone users showed that as many as 40% customers said they would not pay a premium on their current bill to receive multimedia services.

One of the primary reasons behind this is the fact that most users are able to get these features for free on the internet, which has resulted in this scenario that paying extra to get similar features on the mobile phones is becoming a concern for these mobile users.