Mobile convergence slack

Valista a provider of multi-channel merchandising, payments and settlement solutions announced the results of a global poll of the media and entertainment, broadband/cable, and mobile industries on significant industry developments in 2007 as well as upcoming challenges and opportunities for 2008.

Forty-six per cent of mobile industry insiders surveyed believe that developing business strategies to capitalise on convergence will be the biggest challenge in 2008 – followed closely by declining ARPU at 30 per cent. Capitalising on convergence may become even more challenging when confronted with the pessimism within the broadband and cable industry where three quarters predict that less than 10 per cent of broadband and cable providers will offer programming over the mobile channel in 2008 – showing that mobile-broadband convergence is still viewed by the industry to be in its early stages.

Almost half of the respondents in the media and entertainment industries believe that the biggest challenge for 2008 is developing new business models for new channels, followed closely with maintenance of advertising revenues at 33 per cent. Only 11 per cent feel that managing and protecting content would be a challenge for 2008.”The difference in responses between the industries on the topic of convergence signifies the challenges the industries face in developing new business models in the new environment,” said Fran Heeran, CTO, Valista.

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