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October 26, 2004

Wireless content TK

A Yankee Group study on wireless providers trying to get a piece of the entertainment pie comes down to one thing: they desperately need content:

Wireless carriers want a share of the $112 billion consumers spend directly on entertainment annually in the United States (see Exhibit 1). To achieve this goal, carriers are leveraging access to the network in order to negotiate carriage agreements with content owners. However, media and entertainment companies don’t view the mobile distribution as a critical channel. As such, they are willing to withhold their content to force carriers into a distribution agreement they deem acceptable. However, this limits the growth of mobile entertainment and is short-sighted on the part of both industries.

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