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DIMOCO, a leading payment institute for carrier billing, today announces the key trends slated to drive the carrier billing market in 2017. Carrier billing offers content owners and merchants the ability to do business with consumers that do not own a credit or debit card by offering them a reliable and simplified payment mechanism. It uses the pre-existing, trusted billing relationship with mobile carriers that enables consumer to make purchases through the operator’s billing system. DIMOCO enables almost 1 billion European subscribers to purchase goods and services from merchant and aggregators with their mobile phones.
The trends that will drive carrier billing market growth and adoption in 2017 are:
Digital content consumption is on the rise: Digital content revenues are expected to increase from just under $140 billion worldwide in 2015 to $180 billion in 2017, according to a Juniper Research report. The primary driver is consumer demand for digital content on multiple screens, including connected TVs and in-car entertainment options. Content producers that offer carrier billing as a payment method will win over consumers for the simplicity of the payment option. What categories will drive digital content consumption next year?
Gaming will continue to account for the largest share of carrier billing digital content consumption.
Video on Demand (VoD) will experience significant growth in the coming year with consumers taking advantage of real-time acquisition and consumption of their entertainment whenever and wherever they are.
ePublishing is expected to grow significantly in 2017. This growth can be attributed to an increase in digital book sales.
Tech-savvy, always connected consumers looking for better payment options: More industry players in the digital services and digital content arena will choose carrier billing as their preferred payment method. This move will open their market to audiences who are tech-savvy, always-connected and have a low credit card penetration.
Flexibility and new subscription models are on the rise: Digital content producers will explore new subscription models, including one-off purchases and daily/weekly/monthly subscription plans that are charged directly to the customer’s phone bill.
New European regulations to open up new opportunity: The new European regulation Payment Services Directive #2 will enable companies to offer additional service transactions to take place via carrier billing. This includes online ticketing, donations via mobile phone, as well as loading of goods such as gift cards.
Physical good carrier billing transactions are on the horizon: While carrier billing has become one of the more popular payment methods for digital service and content transactions, it has yet to be used for purchasing physical goods online. 2017 will be a pivotal year in taking the industry one step closer to this becoming a reality.
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By John BaRoss, Founder & President, FINCCLUDE Incorporated
A rather quiet alternative payment solution is continuing its inexorable ascension in depth and now breadth as a major, impactful payment solution globally.
Carrier Billing [CB], also referred to as Operator Billing, had its beginnings back near the dawn of monetizing the Internet. Visionaries of eCommerce saw the potential for transacting online, plus anticipated new forms of digital products but at price points far below viable economic model thresholds of traditional payments options like credit cards. The notion of micropayments caused eCommerce planners to intuitively look to telco/carriers to overcome this challenge. While carriers are communication network companies, their other significant core competency was billing. Specifically carriers supported line item billing of network call events that often represented charges to customers in amounts comparable to microbilling (less than $5.00, even less than $1.00).
In the US, while credit card penetration was significant, industry studies showed sizable portions of the population on the sidelines of eCommerce (20-40%+) due to either being unbanked or fearing to transact online with one’s personal financial account information. Leadership at major merchants viewed carrier billing as the Holy Grail of eCommerce billing but in the US, carrier leadership was under significant financial pressure due to chasing the fraudulent MCI/Worldcom ghost, and cramming and slamming billing complaints to the FTC, FCC then to Carrier C-suites (for unauthorized switching of long distance carrier). These environmental factors influenced thinking at leadership of US carriers to not aggressively pursue carrier billing.
Over time, while the US became generally viewed as a global laggard with CB, globally hundreds of carriers, thousands of merchants and countless millions of consumers scaled utilizing CB to make purchases of a potpourri of premium digital content goods and services. In 2016, CB has expanded its global reach to be available in about 120 countries (representing over 90% of the world’s population), supported by 1-10+ carriers per country. Leading industry analyst firms approximate the DCB globally supports $12-$16B+ now, projected to grow to over $24B by 2019.
About FINCCLUDE: Non-profit FINCCLUDE (Financial Inclusion Now, Carrier Commerce Leading a Ubiquitous Digital Economy) is downstream from AFI (Alliance for Financial Inclusion), uniquely exclusively serving the Carrier Commerce industry at the intersection of Financial Inclusion by helping to facilitate the cross-pollinating of financial inclusion success-knowledge to operational leaders in Carrier Commerce (when necessary, as a rapid response unit). www.fincclude.org).
Digital content revenues will increase from just less than USD 140 billion worldwide in 2015 to USD 180 billion in 2017, according to Juniper Research’s new white paper “Making Digital Content Pay”. As a leading payment institute for carrier billing, DIMOCO not only sees the same industry trend but also knows why it’s happening. The reason: A growing migration from physical to digital as well as a strong tendency from consumers to buy and use digital content on multiple screens.
Anticipating these industry changes, DIMOCO maneuvered nimbly, making the move to provide carrier billing on multiple screens. Juniper Research’s reinforces the foresight of this choice.
“As content migrates to digital,” the study explains, “there is an attendant trend away from content ownership and towards content access: it is perceived as far more critical to be able to say ‘listen to a song on multiple devices than to own it’. It also means that, increasingly, the device on which you pay for the content may not be the device on which you primarily access that content.”
Looking at the various digital content segments Juniper Research estimates games will continue to represent the largest share of digital content sales. Most notable in the report is the fact that video will have the strongest average annual growth level in the short and medium term. This will be another development in the shift from the linear viewing experience to a personalized, on-demand schedule. The second largest growth rates are anticipated in the ePublishing space.
The white paper is available to download from the Juniper website along with further details of the full research and the attendant Interactive Forecast Excel. To see what DIMOCO and Juniper Research estimate for “The Future of Carrier Billing in Europe”, including the entire digital content market potential with a payment method achieving up to 77 percent of conversion rates at first time transactions, download the Juniper Research & DIMOCO white paper.
Happy to hear your thoughts & questions about the future of digital content
“The genericcialis-onlineed.com future of carrier billing in Europe” buy generic viagra shows trends on the digital content and cialis 20mg paypal the carrier billing market. canadian pharmacy yasmin European digital content revenue will increase to 55.2 billion viagra online indian pharmacy EUR in 2020; the value of digital content billed via carrier billing will rise to 14 billion EUR in 2020. Carrier billing offers content stakeholders conversion rates up does viagra give you an instant hard on to 88 percent, says Juniper Research. “We are creating tomorrow’s carrier billing future. It’s even more interesting to analyze the market once a year with the leading tech market research partner Juniper Research,” says Gerald Tauchner, DIMOCO President & CEO. tablete za potenciju cialis Dowload your free copy White Paper 3.0 now!
The 2016 publication of the white paper, “The Future of Carrier Billing in Europe” will first be released at the Mobile World Congress.
MWC visitors will have the chance to pick up a copy of one of their favorite issues directly at the DIMOCO exhibition booth #8.1A67. In addition to the digital content market with its areas of games, music, video, ePublishing, adult content, and dating services, the development of carrier billing in Europe in particular has been scrutinized; and chances & possibilities for content and operating system providers & network operators are also presented within the white paper.
During the MWC 2016 you can download a free copy from the DIMOCO website – stay tuned!
With 112.6 million mobile subscribers, Carrier Billing is the number one digital content payment method with the widest potential reach in Germany. While mobile handset penetration is 139.2 percent, with many people having two mobile devices, only 35 percent of the population owns a credit card.
Furthermore, the DIMOCO Carrier Billing market special reveals that smartphone penetration is already 50.1 percent in Germany.
“Digital content is being increasingly consumed on mobile devices, as the number of smartphones in Germany has gone up by 20% in just the last 2 years”, says Gerald Tauchner, DIMOCO Co-Founder and CEO, comparing figures from DIMOCOs’ Germany Carrier Billing market specials 2014 and 2015. The German mobile network market is operated by Telekom Germany (35% market share), Vodafone (28% market share) and Telefónica Germany (37% market share including the brands O2 and e-plus).
Integrating Carrier Billing into the checkout process lets digital content providers as well as consumers benefit from a number of aspects. While consumers prefer Carrier Billing if the payment method is available, and are more likely to purchase digital content due to its simplicity, convenience and security, companies profit from higher conversion rates and a billing method available on multiple screens: Conversion rates up to 70 percent for first time transactions (credit card billing: only 10 %) and up to 80-88% at repeat digital content purchases (credit card billing: only 20 %) were measured in Europe. On the German market, available via DIMOCO, services, transitional goods and digital content on all digital channels can be monetized as one-off or subscription service transactions within a price range of 0.19 and 30 EUR, depending on the mobile network operator. The entire digital content market in Europe is expected to be worth 37 billion EUR in 2018, approximately 7.2 billion EUR of that amount will be billed via Carrier Billing in Europe. (DIMOCO & Juniper Research Carrier Billing White Paper, 2015)
You can download the DIMOCO Carrier Billing Special Germany Poster here!
Find out more trends and download DIMOCO´s and Juniper´s White Paper!