Late 2002 Debut of Wireless Color Screens Ushered in Wireless as a Mass-Market Channel for Media and Entertainment in the United States, According to the Yankee Group

Business Wire, Jan 14, 2003

Business Editors/High-Tech Writers

BOSTON--(BUSINESS WIRE)--Jan. 14, 2003

First movers like Disney, ESPN, MTV and Fox, with the wireless carriers, will define this color version of the wireless Internet.

A new report from the Yankee Group shows that, even in today's environment--with text messaging struggling to reach a critical mass of U.S. customers, and multimedia devices in the hands of only a few--some media and entertainment (M&E) companies can make money. That's because carriers have been willing to compensate media companies in advertising deals in exchange for wireless content.

Media companies' enthusiasm for wireless has been tempered, however, by the limits of a text-only, black and white screen. The first-movers, like Disney and ESPN will be able to take their investments in the rudimentary wireless Internet to deliver games and multi-media entertainment to a new generation of wireless devices.

The report, "Media Giants Discover Wireless, in Color," also gives advice to carriers, concluding that they should focus their efforts on sharing the premium charge for low-bandwidth applications, like ring tones and simple graphics. Heavy content (like MP3s and streaming video) is good for carriers, even if they do not share in the revenues paid explicitly for the content. Report author Adam Zawel, Yankee Group Wireless/Mobile Enterprise & Commerce director, cautions carriers, though "Carriers will not earn a single euro-cent if they charge for ring tones or simple graphics by the byte," says Zawel. "It is essential that they develop infrastructures that allow them to add value to low-volume data transactions."

NOTE TO EDITORS

For interviews contact Adam Zawel, azawel@yankeegroup.com.

THE YANKEE GROUP (www.yankeegroup.com)

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