Strategy Analytics: Branded Content Critical to Realize $18 Billion MMS Market

    BOSTON & MILTON KEYNES, U.K.--Dec. 19, 2002--

    Branded Content and Applications To Drive 60 Percent of Revenues and 30 Percent of MMS Traffic

    Strategy Analytics today released a new report titled, "MMS Market Dynamics: Content To Drive MMS Revenue." This report recommends that operators focus on developing a potent cocktail MMS content and applications to fuel content portal usage. The cellular and media communities must work together to generate momentum for Digital Rights Management (DRM) standardization across the cellular industry.
    With application-to-person MMS revenues generating 60 percent of global revenues by 2007, MMS content distribution will become a major battleground between operator portals and media distribution powerhouses such as AOL, Lycos and Yahoo!
    Nitesh Patel, a Senior Industry Analyst at Strategy Analytics warns, "Operators should not rely on the combination of their customer billing relationship and any expected end-user inertia to guarantee their position as the kings of MMS content. Operators must develop partnerships with both branded and micro content providers in order to deliver a desirable variety of content that will give them the edge over hugely popular Internet portals." The report also recommends that operators adopt a per-message based MMS pricing scheme, which is simple for consumers to understand, will stimulate end-user experimentation, and will ultimately drive higher MMS usage frequencies.
    Despite the positive outlook for MMS in the long term, Strategy Analytics concludes that slow diffusion of entry-level MMS handsets into the large data hungry prepaid cellular user base, and limited inter-operator MMS agreements, will stifle growth over the next few years. Our Wireless Device Strategies service estimates that less than 15 percent of handsets shipped in 2003 will be MMS enabled.
    David Kerr, Vice President of the Strategy Analytics Global Wireless Practice adds, "Strategy Analytics strongly recommends that operators seek partnerships with the Asian vendors such as Samsung, LG, Sharp and leading ODMs. These players bring greater flexibility in customization, and competence in low cost display technology than many of the market leaders, and can therefore drive down device costs."

    For a chart with more information, please see www.strategyanalytics.com/press/pr00029.htm

    About Strategy Analytics

    Strategy Analytics, Inc., a global research and consulting firm, provides timely insights and strategic business solutions to companies operating at the convergence of information, communications and entertainment technologies. With worldwide headquarters in Newton, MA and principal offices in England, France and Germany, Strategy Analytics focuses on market opportunities and challenges in the areas of Automotive Electronics, Broadband, Telematics, Wireless Strategies and Enabling Technologies. For more information, see www.strategyanalytics.com