In the last couple of years, Video on Demand (VoD) streaming and PPV has grown on mobile. According to the Ericsson Mobility Report for June 2013, video accounts for more than 30% of all mobile-data traffic, globally. On average, 2.7 million VoD requests are made in the UK alone, every week.

With viewers watching on demand content for an average of 3.5 hours per week, and mobile devices pulling in up to 50% of viewing time, mobile is a key area for VoD.

One of the key issues surrounding Over-The-Top (OTT) content and VoD is how to monetise it. Advertising is commonly used, however, this can be damaging to the overall customer experience. Below are reasons why mobile operator billing can offer a strong solution to the problem.

  • Quick and seamless payments. Mobile web optimised mobile billing offers the customer a simple billing process. They are charged to their mobile phone bill or pre-paid credit, without having to fill in the long forms associated with credit card.
  • Attract non-credit card customers. For those who don’t own a credit card, mobile billing offers another option.
  • Audience Profile: 16-30. This is a key demographic for those who consume VoD and OTT content. This is also a key demographic for mobile payments.
  • High conversion rates. The quickness and easiness of mobile billing results in fewer drop-offs. Where direct operator billing is available, conversion rates can be as high as 85%, whereas credit card conversion rates can drop down to as low as 7% on mobile.

The Quality of Experience (QoE) for VoD streaming users on mobile is an area that is currently improving, with the streaming quality not high enough in many cases. Mobile billing can offer a simple way to charge users for premium service.

Video streaming on mobile is set to grow in the coming months and is likely to pass 45% of all mobile-data traffic in the next five years.

To find out more about mobile billing, please contact us.

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