Business Models for Mobile Content: the Case of M-Games

It has been difficult to develop a profitable business model for Internet content. The emerging medium of mobile communications promises a new opportunity for this type of business because the gatekeeper for the medium, the wireless network provider (WNP), has greater control over what customers can feasibly do with their mobile devices. Higher barriers to entry and usage costs for mobiles should lead to the development of content business models that are more likely to generate profits. Within the mobile value chain, the WNP has the greatest bargaining power and can thus negotiate the largest share of profits. This paper examines the transformation of an industry as it moves toward a mobile, as opposed to Internet, focus. Mobile games are expected to generate substantial revenue but service providers will have to examine where they fit within the new value chain. The most appropriate strategy for WNPs is to leverage their control over wireless infrastructure and customer relationships. The management com...