Sports brands to cash in on mobile video with direct carrier billing | Mobile | News | Rapid TV News
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Research from PM Connect has found that with sports fans soon likely to be paying for instant highlights, streamable matches and behind-the-scenes content using their mobile phone, consumers will purchase US $28 billion worth of transactions this way by 2023 through direct carrier billing (DCB).
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Direct carrier billing involves consumers paying to view content via their mobile phone bill or pay-as-you-go package and the research report, The Future of DCB, by the company which counts WWE and the NBA as leading clients, revealed that in-demand sport content is one of the most significant growth sectors and that DCB technology will enable sports content providers to connect with a projected 1.5 billion users in the next three years, with the content type set to generate global revenue of $228 million by 2023 – a 625% increase compared with the current $141 million.

The analyst also predicts that by 2023, 39% of smartphone users are set to regularly access sports content, tickets, videos and news articles through DCB payments, with the number increasing from just 19% in 2018 to 26% in 2020.

DCB is a more universal way to pay for services, bypassing the need for long sign-up processes or inputting bank account details, alongside transparent direct communication. In addition to established markets within Western Europe, the analyst projects spikes for the technology will be in emerging markets such as Africa where DCB users are set to reach 130 million by 2023 - a 60% compared with 2020.

PM Connect noted that the shift towards the payment technology was being driven by low credit card usage and home internet pick-up, with consumers in emerging markets needing a more universal payment option. Estimates show that mobile phone penetration across Africa is on average 80%, twice the rate of banking penetration. PM Connect believes that or sports content providers this represents an opportunity to reach new paying viewers. Sub-Saharan Africa, for example, is already one of the Premier League's fastest-growing audiences, with a forecasted 276 million viewers tuning in each year.

The18-24 year old age bracket will be a key potential demographic for using DCB to access sports content. PM Connect details these users as unlikely to purchase a full broadcast subscription for viewing live games, instead utilising more digestible content that blends into their day-to-day mobile browsing experience.

“The past five years have seen mobile content become king, with mobile internet usage now accounting for 52% of web-page views around the world,” said Chris Purdie, group commercial director at PM Connect commenting on the Future of DCB report. “While the current climate has presented undoubted challenges across industries, it has underlined the power of the smartphone for communication and payment. Mobile internet use has surged by 50% in some markets, as consumers look to their phones as the best way to stay connected to their favourite brands – coupled with an increase in organisations communicating to their audiences via SMS.”