Internet Retailer - Strategies For Multi-Channel Retailing

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News Stories Friday, January 19, 2007   
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Wireless data and m-commerce for digital content on the rise

Consumer use of mobile phones to access wireless data and purchase digital products and services continues to blossom. Mobile data services revenue is up 88% year-over-year for the third quarter of 2006, with revenue hitting nearly $3.5 billion compared with $1.9 billion in Q3 2005, according to Telephia Inc., a mobile communications industry research firm.

Revenue from the mobile downloading of digital content including games, audio, applications, and video and TV hit $727 million in Q3 2006; revenue from mobile video/TV and mobile games accounted for $141 million each in Q3 2006, Telephia says. While the penetration of U.S. mobile video/TV subscribers still is small, 2.3% in Q3 2006, the number of mobile video/TV subscribers doubled to 5.1 million since the beginning of 2006.

Realtone ringtones made up 75% of revenue for the quarter, and for the first time, ringback tones revenue share, 14%, surpassed that of mono and polyphonic ringtones, 11%, which has declined heavily in the past year, the research firm concludes.

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