Press Release Summary:
Web-based OpenMarket Exchange enables media companies to build direct-to-consumer mobile content businesses. It facilitates off-network transactions, in which consumers purchase mobile content directly from media companies using billing and service relationship with mobile service provider. OpenMarket delivers SMS short-code management, SAS 70 compliant transaction processing, real-time reporting, settlement, and customer care integration.
Original Press Release:
Amdocs' Qpass Launches OpenMarket Exchange, a Catalyst for the Growth of the Digital Content Marketplace
The new web-based exchange allows media companies to sell premium digital content directly to consumers and improves profitability of both content and mobile service providers
ST. LOUIS, June 26 // -- Amdocs (NYSE:DOX), the leading provider of software and services to enable integrated customer management and the intentional customer experience(TM), today launched OpenMarket Exchange (http://www.openmarket.com/), a web-based business system that enables media companies to build lucrative, high-growth "direct-to- consumer" (D2C) mobile content businesses. OpenMarket Exchange is the first-ever system for digital content transactions and is designed to improve the profitability of digital content initiatives of both media companies and mobile service providers, as well as minimize the costs and complexity associated with such initiatives.
The new exchange will enable "off-network" transactions, in which consumers purchase mobile content directly from media companies using the billing and service relationship with their mobile service provider. Yankee Group estimates that the off-network market for premium content will exceed $700M in the U.S. in 2006, and has grown more than threefold over the past 18 months. Yankee identifies the overall consumption of digital content to be higher in Europe, where about 75 percent of consumers' mobile content spend is via off-network. In the U.S. that portion is 25 percent, but is expected to rise rapidly.
"As this market continues to grow there is a need to ensure a standard, transparent way to manage, bill and settle off-portal digital content transactions," said Linda Barrabee, Program Manager, Wireless/Mobile for Yankee Group. "Service providers and media companies will require more efficient financial management, improved customer care capabilities, and real-time reporting tools."
OpenMarket Exchange addresses these factors, as it reduces the operational complexity for media companies and mobile service providers in providing and billing for digital content, while improving the customer experience in purchasing the content.
"When you look at the amount of money tier one media companies spend on the mobile channel relative to the others - TV, radio, print, and online media -- mobile is receiving just a tiny fraction of its potential investment," said Steve Shivers, senior vice president and general manager of OpenMarket at Qpass, Amdocs Digital Commerce Division, which developed the service. "The OpenMarket Exchange addresses the complexity and costs that make it difficult for media companies to enter the D2C mobile commerce space. With the scalable, financial-grade infrastructure provided by OpenMarket, they can invest and profit from the mobile channel on par with the other major media channels, and can do so in a way that greatly increases revenues and profits for mobile operators."
Off-network digital content is a high-growth revenue stream for mobile service providers. However, customer care expenses can be high, as consumers frequently request refunds when issues arise with content purchases. With OpenMarket Exchange, the billing issues are addressed so that customer satisfaction is higher, which will improve customer loyalty and make additional purchases easier.
Randy Eisenman, CEO of Handango, said, "As a leading provider of mobile content, Handango's highest priority is to create a compelling shopping experience for consumers. By integrating our platform, AMPP, with Qpass' OpenMarket solution, we're able to dramatically enhance the customer experience, further simplifying the delivery and billing of rich mobile content. We view our partnership with Qpass as a win for consumers as well as for our channel partners."
OpenMarket provides the critical functionality of offer management, SMS short-code management, SAS 70 compliant transaction processing, real time reporting, settlement, and customer care integration. For more information please see the "Increasing the profitability of off-portal content" white paper at http://www.qpass.com/.
Amdocs combines innovative software and services with deep business knowledge to accelerate implementation of integrated customer management by the world's leading service providers. By delivering a comprehensive portfolio of software and services that spans the customer lifecycle, Amdocs enables service companies to deliver an intentional customer experience(TM), which results in stronger, more profitable customer relationships. Service providers also benefit from a rapid return on investment, lower total cost of ownership and improved operational efficiencies. A global company with revenue of more than $2 billion in fiscal 2005, Amdocs has 13,000 employees and serves customers in more than 50 countries around the world. For more information, visit Amdocs at http://www.amdocs.com/.
Qpass, Amdocs Digital Commerce division, enables the buying and selling of digital goods and services over any network. The Qpass platform manages hundreds of thousands of content applications and services across mobile, broadband, VoIP, and Wi-Fi networks. The company helps customers, including network operators, media companies and content providers manage the entire digital commerce value chain including content management, merchandising, delivery, payment, settlement and customer care.