jmcoffin

Overview

Content Aggregators are responsible for gathering data applications and other content from typically web based systems and tailoring or reformatting these sources into different mediums for re-sale or use. Specifically, those associated with the redistribution of data in a variation of forms refers to the process of syndication; which usually has associated contracts and fees attached.
Syndication can be delivered in a wide variety of platforms and through various end devises including mobile phones and computers and apply to a large range of subject material including the music industry, gaming, software, applications, downloads, television and many more. These forms can be combined and conjoined into applications for multiple mediums to assist in maximizing a targeted audience for additional profit benefits, so there are seemingly endless possibilities in terms of manufacturing desired services to almost any digitized market.

Mobile Content

In terms of the cell phone industry there are several ways to get involved in terms of content aggregation. Specifically there are three types, but the two we are primarily concerned with for business ventures include on and off-deck aggregation. On-deck aggregation occurs when there is a deal made between the content aggregator (seller) and a phone company (buyer). After which the phone carrier offers the aggregators purchased services through their phones. Subscriptions and access charges are billed directly to the consumer if the service is used.

A more viable alternative is off-deck aggregation. Content is repurposed in a standard format, and anyone with access to the mobile web is then able to access the content offered through his or her mobile phone. Consumers may subscribe, download, or purchase services that are directly billed from their cell phone company ‘off-deck’ since the application is not directly affiliated with the phone company itself in terms of licensing. The phone service provider will typically take a share of profits from the aggregated services total price for the use of their network. In general off deck aggregation is the best market to enter from their excellent profit margins and better pay offs. Off-deck also do not have as many legal issues and negotiations that would normally need to be made with carriers as in on-deck aggregation.

Competition

In terms of competition there are several companies that are competing successfully in a variety in the field of content aggregation. Web based content aggregatiors alone have a large scope in terms of exploration fields and methods available for business ventures due to their massive marketing audience. Some examples of web-based aggregation include Moreover.com, which is a “web feed" company that utilizes headline links that adjoin physical content to business oriented sites, and offers a variety of formatting including XML, Java, and HTML as well as integration of web feeds. Content is not only accessible but personalized by users. Additionally they have merged with a separate aggregation company (as the current trend seems to be with aggregate competitors) that focuses on research-based applications. For their combined services, this company charges around $1,500 a month for client access and serves several large-scale companies including Mercedes Benz. ISyndicate is another web-based company that operates in a different way from the previous example in that it is tailored for specific markets of clients in order to provide them with field specific content, media, and headlines to targeted audiences. Income is generated by a “click fee” they receive from sponsors of these links for each hit that passes through their content provider. Programs offered by this particular service range from comics to weather forecasts.

For mobile phone aggregation, social networks are another booming industry that the company Wirlke is syndicating for mobile access that launched in 2006 through web 2.0 software technology and is doing very well. Other mobile phone companies such as Verison, are utilizing data aggregation and downloads for additional income. Ring tones and playback features alone contributed an additional five million dollars in revenue. Wallpaper downloads for cell phones remediated from Sports Illustrated swimsuit edition reached 1.1 million dollars in sales in less than a six months. ESPN, T-Mobile and several other competitors that are entering the market through a variety of means have also seen a similar increase in profits from low cost downloads.

Industry market predictions

Despite the decline in various economic statuses, this media market is continuing to rise in terms of profits and is predicted to continue in its rapid growth. Competitors not offering these digital services to clients will essentially be phased out due to consumer demands, or eventually begin to offer these services (depending on their respective fields). As a direct result, the demand for content aggregators is being highly sought after by large scale companies in a multitude of fields, including Verison, AT&T, Apple, and many more. Leading manufacturers, such as Nokia, Sagem, and Philips are even holding contests for the best java content aggregation in hopes of utilizing these new services.

In terms of aggregation in the cell phone community, in the US alone revenue shares for content aggregations alone are estimate to exceed 167.6 million by 2011 (see Addendum A). The market is predicted to continue to grow despite the current economic status and in regards to Internet advertising growth rates are still on the rise and have leaped by 12.8%. This further suggests that web based applications will continue to be accessed and utilized by consumers. It has also been argued that sales online should increase due to more consumer savvies and use of the web to find more competitive prices.

Associated Risks

Content aggregators typically operate under licensing agreements from these cross platform transformations of media, and typically act as go-betweens for content owners and distributors. Depending on what medium you are aggregregating legal fees and obtaining authorization to redistribute content may not only be time consuming, but also incur excessive royalties. This does not to include research fees, technological development, and cuts that service providers will take for utilizing their platform to have users access your content in addition to already incurred costs.
In terms of contracting with other companies, prospective clients and sellers must ensure that documents do not include payment thresholds clauses that may limit your total monthly income. These thresholds typically put a minimum sale per month amount in dollars, and if your company does not meet this quota, you are simply not paid for that month.

Conclusion

Although several aggregators are profiting immensely from this growing market, those that are merging with large corporations are doing the best in terms of revenue shares and marketing to clients. Since so many individuals are venturing into this booming industry, it is highly competitive and only the best organizations are flourishing. This is an extremely risky market, and I would not recommend this as a primary business venture for the corporation, but possibly one to do on the side. Investments in such a risky and populated market with such fierce competition would require this company to thoroughly explore the diversity in the market and untapped resource, as well as participation in several different marketing niches.

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