The new web-based exchange allows media companies to sell premium digital content directly to consumers and improves profitability of both content and mobile service providers.
Amdocs (NYSE: DOX), the leading provider of software and services to enable integrated customer management and the intentional customer experience TM, today launched OpenMarket Exchange (www.openmarket.com), a web-based business system that enables media companies to build lucrative, high-growth “direct-to-consumer” (D2C) mobile content businesses. OpenMarket Exchange is the first-ever system for digital content transactions, and is designed to improve the profitability of digital content initiatives of both media companies and mobile service providers, as well as minimize the costs and complexity associated with such initiatives.
The new exchange will enable “off-network” transactions, in which consumers purchase mobile content directly from media companies using the billing and service relationship with their mobile service provider. Yankee Group estimates that the off-network market for premium content will exceed $700M in the U.S. in 2006, and has grown more than threefold over the past 18 months. Yankee identifies the overall consumption of digital content to be higher in Europe, where about 75 percent of consumers’ mobile content spend is via off-network. In the U.S. that portion is 25 percent, but is expected to rise rapidly.
“As this market continues to grow there is a need to ensure a standard, transparent way to manage, bill and settle off-portal digital content transactions,” said Linda Barrabee, Program Manager, Wireless/Mobile for Yankee Group. “Service providers and media companies will require more efficient financial management, improved customer care capabilities, and real-time reporting tools.”
OpenMarket Exchange addresses these factors, as it reduces the operational complexity for media companies and mobile service providers in providing and billing for digital content, while improving the customer experience in purchasing the content.
“When you look at the amount of money tier one media companies spend on the mobile channel relative to the others – TV, radio, print, and online media – mobile is receiving just a tiny fraction of its potential investment,” said Steve Shivers, senior vice president and general manager of OpenMarket at Qpass, Amdocs Digital Commerce Division, which developed the service. “The OpenMarket Exchange addresses the complexity and costs that make it difficult for media companies to enter the D2C mobile commerce space. With the scalable, financial-grade infrastructure provided by OpenMarket, they can invest and profit from the mobile channel on par with the other major media channels, and can do so in a way that greatly increases revenues and profits for mobile operators.
Off-network digital content is a high-growth revenue stream for mobile service providers. However, customer care expenses can be high, as consumers frequently request refunds when issues arise with content purchases. With OpenMarket Exchange, the billing issues are addressed so that customer satisfaction is higher, which will improve customer loyalty and make additional purchases easier.
Randy Eisenman, CEO of Handango, said, “As a leading provider of mobile content, Handango’s highest priority is to create a compelling shopping experience for consumers. By integrating our platform, AMPP, with Qpass’ OpenMarket solution, we’re able to dramatically enhance the customer experience, further simplifying the delivery and billing of rich mobile content. We view our partnership with Qpass as a win for consumers as well as for our channel partners.”
OpenMarket provides the critical functionality of offer management, SMS short-code management, SAS 70 compliant transaction processing, real time reporting, settlement, and customer care integration. For more information please see the “Increasing the profitability of off-portal content” white paper at www.qpass.com.
OpenMarket is the only complete messaging and financial system for mobile commerce, and the choice for companies looking to reliably sell premium digital content directly to consumers. OpenMarket provides an innovative and powerful suite of on-demand services from a trusted industry expert enabling the largest consumer brands to the smallest enterprises to rapidly and cost effectively launch their product offers and promotions in the mobile channel. OpenMarket provides the most direct network operator connections in the U.S. market today. Visit www.openmarket.com for more information.
Amdocs is the market leader in customer experience systems innovation, enabling world-leading service providers to deliver an integrated, innovative and intentional customer experience(TM) – at every point of service. Amdocs provides solutions that deliver customer experience excellence, combining the software, service and expertise to help its customers execute their strategies and achieve service, operational & financial excellence. A global company with revenue of $2.84 billion in fiscal 2007, Amdocs has over 16,000 employees and serves customers in more than 50 countries around the world. For more information, visit Amdocs at www.amdocs.com.
Amdocs Forward-Looking Statement
This press release includes information that constitutes forward-looking statements made pursuant to the safe harbor provision of the Private Securities Litigation Reform Act of 1995, including statements about Amdocs’ growth and business results in future quarters. Although we believe the expectations reflected in such forward-looking statements are based upon reasonable assumptions, we can give no assurance that our expectations will be obtained or that any deviations will not be material. Such statements involve risks and uncertainties that may cause future results to differ from those anticipated. These risks include, but are not limited to, the effects of general economic conditions, Amdocs’ ability to grow in the business segments it serves, adverse effects of market competition, rapid technological shifts that may render the Company’s products and services obsolete, potential loss of a major customer, our ability to develop long-term relationships with our customers, and risks associated with operating businesses in the international market. Amdocs may elect to update these forward-looking statements at some point in the future, however the Company specifically disclaims any obligation to do so. These and other risks are discussed at greater length in the Company’s filings with the Securities and Exchange Commission, including in our Annual Report on Form 20-F for the fiscal year ended September 30, 2007, filed on December 3, 2007, and in our quarterly 6-K furnished on February 11, 2008.
Weber Shandwick for Amdocs
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