Changing subscriber expectations and market conditions have prompted many operators to re-invent themselves as digital service providers. Central to this transformation is the ability to work with a variety of digital partners such as content providers, advertisers and OTTS in a mutually beneficial way to inspire subscriber loyalty, grow revenue and ultimately provide a better digital experience.
As with any joint business venture, the bottom line is that service providers and digital partners must derive significant value from their collaboration. For service providers, the goal is to retain customers by creating an ecosystem of value-added services that is difficult for competitors to replicate. They also want to unlock untapped revenue potential associated with instant and incremental purchases driven by notifications that appear on their customers’ mobile devices. Digital partners are looking to extend their reach to end users, whether by entering a new market or keeping them engaged with content for as long as possible.
So how can service providers and digital partners enable offers that address these goals? Let’s look at a few use case examples.
Digital content purchase via mobile plan balance
In markets where credit cards are not widely used, paying for online purchases or subscriptions is not a straightforward process. This is a unique opportunity for service providers that already have a working payment model set up, to allow customers to use their account balance to pay for purchases. With this model, a user can subscribe to Netflix, digital magazines, books and music directly from the content provider or purchase from different application stores in real time without having to use a credit card.
Digital partners can use the service provider’s channels to reach more users in countries where they have less penetration or less-advanced payment systems. The service provider generates revenue (usually a percentage of the purchase price) and the end user experience is simplified.
Zero rated download
Consider an app developer who wants to increase his market penetration in select regions. He can benefit from a zero-rate offering where digital partners pay for the data that end users require to download the application and in exchange receive a campaign fee paid by the developer.
This ecosystem is especially enticing for large digital partners that own application stores, such as Apple or Google. These partners can purchase wholesale data volume from the service providers and charge a campaign fee to the app developers through their application stores. Service providers generate revenue from a new source and the end user benefits from being able to download the app outside of their current data plan.
In-app OTT top up
Now consider a user who is streaming a video on her mobile and is about to run out of data. A notification can be automatically sent to her within the video app, offering several top up options such as data plan upgrades and the opportunity to redeem rewards points. Users can then choose the preferred option without having to leave the OTT app and without having the video experience interrupted.
The ability to top up in an OTT app makes it easier for end users to extend their data allowance. The service provider benefits from increased data usage. The OTT app provider benefits from keeping end users within their app environment, ensuring they don’thave to use other apps.
These are just a few examples of how Nokia’s monetization solution can enable digital partnerships to create new monetization models.
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