Carrier billing is set to play an increasing role in digital content transactions, with operators eyeing content revenues.
This is according to Juniper Research's recent study: Digital Content Business Models: OTT & Operator Strategies 2016-2021.
The report notes the value of digital content transactions paid for by carrier billing is expected to reach $47 billion by 2020, more than four-times 2015's figure of just under $11.3 billion.
Games will continue to account for the largest share of digital content sales for the foreseeable future, says Juniper.
However, the content sector with the strongest average annual growth levels in the short and medium term will be video, which is at the forefront of the migration from physical to digital and from the linear viewing experience to a personalised, on-demand schedule, it adds.
Juniper says Apple's decision to test carrier billing in Germany and Russia is likely to herald a substantial number of further deployments in the medium term.
Juniper also argued that the move will be essential if Apple is to monetise unbanked owners of refurbished devices in emerging markets, who would otherwise be limited to paying for content via iTunes gift cards.
It also notes carrier billing solutions could be a key means of monetising content purchased within an array of environments, including connected cars and in-flight infotainment.
Ovum senior analyst Richard Hurst notes Apple entering the carrier billing will be a positive step to enabling range of new services in the local market.
Given the dominance of pre-paid in the SA market, carrier billing will enable more customers to transact and gain access to content and services, that may have been out of their reach simply because they lacked the appropriate payment mechanism, says Hurst.
According to Hurst, there are a range of issues influencing the arrival and growth of carrier billing, but the chief among them has been the ability to control the relationship with the customer.
The arrival of the app stores was something of a wedge between the network operators and their customers, as the app stores run by Google and Apple and others started to chip away at this, he adds.
He advised that for SA network operators to capture this opportunity, they will need to position themselves as being the enablers of the service, remove complexity and try to be the consumer's champion.
Share