Localized and user-created content sparking buzz in wireless space

Wireless service providers in Canada and around the world are increasingly turning to user-created content to spur adoption of wireless data services. This was the message from Simi Grosman, senior VP of business development at Oöober, an online marketplace for mobile content. He said that while licensed content from BMG, Universal Studios, Warner Brothers and others has a broad appeal, user-created content can create ties to a community of interest or particular geographic location. It’s this closer link to a specific community that has sparked interest from the carriers. Speaking at the IP Telecom EXPO in Montreal on May 31, Grosman said that wireless operators are extremely interested in getting a greater amount of community relevant content out to subscribers. "What we’re finding in talking to some of the carriers is that they would love to be able to provide content that is more relevant for their local communities," he said during his presentation, citing the example of Orange France offering subscribers content that is different from that offered to customers in the United Kingdom. Providing this type of content can act as a differentiator for one wireless carrier over another, Grosman added. "For , it not only represents another revenue stream, it represents a way of creating loyalty," he said. "We all know probably the thing that keeps all operators up at night is the idea of holding on to their subscribers and then being able to generate more revenue from those subscribers. So anything we can do, or anywhere they can get help in building that loyalty to the community is going to resonate very positively." Operators are now opening up their "walled gardens" to add this user-created content as part of their broader portfolio of mobile content, Grosman told Report on Wireless after his presentation. "They’re basically saying to their subscribers, ‘Look you can get all this neat content,’" he said referring to traditional licensed content. "But the fact is look what else we’re giving you, we’re giving you this user-created content.’" Toronto-based Oöober operates much like eBay, only it offers digital merchandise such as ringtones, wallpapers, photos, audio clips and video clips. The company only recently emerged from stealth mode where it worked for about two years developing its mobile content platform. Grosman explained during his presentation that the platform eliminates the complexity required to post content on a web site. Despite being in business for only a few months, Grosman says Oöober is making money through revenue sharing agreements with the content creators and the carriers. Even with the low prices of digital goods and services -- 99 cents for a ringtone -- the high volume of transactions accumulates quickly, he notes. As well, Oöober is beginning to attract the attention of advertisers as the traffic increases on its web site. For more information on user-created mobile content and examples of what types of people and organizations are exploiting it, refer to the June 12 issue of Canadian NEW MEDIA, a publication affiliated with Report on Wireless.

Localized and user-created content sparking buzz in wireless space

News | June 15, 2006

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