DENVER, United States-Santa’s helpers will be able to stuff stockings with a new gift this year-wireless data.
U.K.-based wireless entertainment and publishing company Digital Bridges plans to sell packaged, prepaid ring tones through a major U.S. retailer by the end of the year, with wireless Java games to follow. For several months now, the company has been testing the new sales strategy through retail outlets in the United Kingdom, including Dixons, Carphone Warehouse and Phones 4 U.
Digital Bridges executives said the strategy is a way for the company to broaden its distribution and a way to get wireless data applications into the hands of almost any shopper. The approach bypasses the sometimes difficult and complicated downloading processes wireless users must sift through when browsing on their mobile phones.
“Instead of clicking through a WAP (Wireless Application Protocol) menu, we’re putting it in front of store shoppers,” said Anders Evju, Digital Bridges’ vice president and general manager for North America. “It’s basically prepay mobile entertainment.”
What the company is essentially selling is a set of instructions and a personal identification number (PIN), which comes inside a shrink-wrapped DVD case-just without the DVD. The case is sold on store shelves and includes information on what phones the service works over and what shoppers will receive. Once purchased, shoppers can use the instructions and PIN number to download applications to their phones. Digital Bridges’ Evju said the company will first begin selling ring tones in the United States and later will add games based on Java application download technology. Evju declined to provide specifics on the company’s U.S. plans, including which retailers will sell the product.
“What we are capitalizing on is the power of distribution,” Evju said. “It’s a pick-me-up item, an impulse buy.”
Although much less common in the United States, the company’s strategy is fairly standard in Europe. Television commercials for ring tone and games are typical fare, and content providers also advertise regularly in newspapers. However, selling packaged content in retail outlets is relatively unique and represents a significant new tactic for entertainment publishers like Digital Bridges.
Indeed, Digital Bridges’ main business is signing deals with carriers to sell the company’s content through wireless carrier portals and home pages. The company’s retail sales effort essentially bypasses the carrier channel, therefore eliminating the revenue-share Digital Bridges would have to pass on to its carrier partners.
However, Evju was quick to point out that Digital Bridges is not looking to subvert the role of the wireless operator.
“My intention is not to bypass the carrier,” Evju said. “I’m trying to get the carriers as involved as possible.”
Evju said carriers will still earn revenues from traffic and airtime, regardless of how Digital Bridges sells its content. Evju likened the situation to the Internet, where service providers offer the connectivity, while content providers sell through the connection.
“You’re still giving the carriers all the traffic,” he said. GW
