Convergence devices like iPad and tablet will blend the content consumption of a PC user with the simplicity of mobile payment mechanisms and generate enormous new revenue opportunities.
Poverty for publishers and money in mobile
Enticing users to pay on the desktop/notebook web has been a difficult, almost Sisyphean, exercise. As a result of the revenue scarcity from paid content, content publishers have resigned themselves to advertising-based businesses. Core printing business are faltering placing more pressure on online revenue generation.
On mobile devices, the story is quite different: paid content has massively exceeded expectationsl. Revenues from app stores are in the hundreds of millions of dollars only 24-36 months after launch; this revenue is probably 2 orders of magnitude larger than that of paid content on the web.
Payment success factors
Mobile payments succeed because of three factors:
- There is compelling content to buy
- Typing is a pain, so creating a one-time account is immediately beneficial to a user
- One click decreases friction and increases sales
Tablets are a massive opportunity for content
Tablets will bring the effortless and friction-free payments mechanisms from mobile with the content consumption patterns of desktop/notebook devices. The chemical reaction of these two is cash. This represents an opportunity for large and small companies alike.