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Cloud storage bundles improve stickiness but not revenues – research

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Research undertaken by analyst firm Strategy Analytics has concluded that pre-installed mobile cloud storage bundles, such as Dropbox, have become table stakes for device vendors and are perceived more as a prerequisite than a value-add.

SA pooled the resources of three analysts covering mobile content, user experience and app tracking to come to the conclusion that premium storage bundles have already become ‘me too’ propositions that confer little product differentiation. Having said that they also conclude they can still be effective for both device vendors and operators when it comes to customer loyalty.

Christopher Dodge, Associate Director of SA’s Wireless Media Labs, said: “Our research suggests that consumers are agnostic to who the service provider is, but at the same time they place significant emphasis on the trustworthiness of the service, which in turn creates an opportunity for device OEMs and operators in becoming the trusted provider of the service, through pre-installing the application on the device with free storage.”

Nitesh Patel, Director of the Wireless Media Strategies Service, said: “For operators, the focus with cloud storage service should be on indirect monetization – this means rather than relying on cloud as a premium service, they should manage it effectively for reducing customer churn.”

Bonny Joy, Chief of SA’s Consumer Telemetry Platforms said: “ OEM partnerships with cloud storage providers are being received favorably by the end users. The AppOptix based on over one million application sessions in the US found that Dropbox on Samsung devices realize a traffc of 12.8 MB  per day, the highest among  major OEM brands.”

Fellow analyst firm CCS Insight has also published some research today, but focusing on the UK consumer communications services market. CCS is forecasting that by 2020, 79% of UK households will have signed up to a multiplay service bundle, a 60% increase on the current level. Furthermore the number of households buying a bundle of at least four comms services is expected to increase by over 400%.

Paolo Pescatore, Director of Multiplay and Media at CCS Insight, reckons this means premium content will become even more valuable and that industry consolidation is set to continue. “With a furious battle for customers raging, we expect the amounts paid for exclusive content deals on movies, sports and TV shows to continue to skyrocket. Sports will be a major weapon in every provider’s arsenal for many years to come,” he said.

“Our surveys reveal that consumers find it more convenient and better value to buy broadband, mobile, TV and land-line access from one company, so established providers that can offer all these services are in a strong position. Once multiplay packages are the norm, it’ll be the exclusive content on offer that’ll set providers apart. It’s little wonder we’re seeing a frenzy of acquisitions as leading players scramble to secure assets.”

  • TV Connect MENA


One comment

  1. liron golan 26/03/2015 @ 12:40 pm

    I fully agree with the findings when the target audience is the private sector.

    The above-mentioned rule does not apply to the business sector.
    Small and Medium sized Businesses (SMBs) are becoming increasingly important to technology and communications services providers as a means of growing their business.
    A core challenge for many SMBs is being able to keep up with technology change. Communications services and technology management is often a role “fitted around” other activities with no one taking on the role.

    Results from the recent Amdocs survey reveal that small medium businesses (SMBs) have embraced technology – almost to the full.

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