Mobile Content Russia

i-Free, a leading provider of content services in Russia, Ukraine, Belarus and Kazakhstan, is pleased to note that the market for downloadable mobile content is showing signs of recovery. In July, mobile content sales showed impressive growth for the first time since the crisis struck, and remained high in August, while the mobile content index appeared to be steadily on the grow.

In July, i-Free analysts noted a more than 30% growth in the sales of mobile content downloaded by users from catalogues published by i-Free in the print media. Sales remained equally high through August.

The content index gauged by i-Free and posted monthly on its corporate website at www.i-free.com, in the «Market Pulse» section, shows the dynamic of consumer demand for standard mobile content such as games, sounds, pictures, tunes, videos, animation, infotainment, etc.

The index is culled from the amount of media features sold by i-Free via print periodicals. The analysis covers print media with steady print runs and a steady amount of advertising. To make the index more accurate, the analysis ignores seasonal sales and promotions, as well as pioneering and exclusive products that can heat up demand.

In the event of technical failure on the operator or provider side, i-Free will make adjustments as necessary. Any change in the operator's business model will not affect the calculation system.
The dynamic of the i-Free index describes variation in user demand and tracks any significant changes in the business models or processes of those operators that use the CPA model.

«Although mobile services have been hit hard by recession overall, its impact has been different in different segments,» said Kirill Petrov, i-Free Managing Director. «Some segments, most notably micropayments, have actually continued to grow, albeit at a slower rate. Others, like ringbacktones, have showed conflicting dynamics: while demand dropped, active promotion by operators coupled with better functionality and RBT launches in some new networks have kept the segment on the rise overall. There has been a particularly steep drop in standard content distributed through direct media advertising or profit-sharing arrangements. In the wake of the crisis, subscribers tended to spend less and put less money on their phone credit, but this seems to be changing now. Our content index points to growth.»

The positive trend in traditional content sales is driven by a number of factors, according to i-Free analysts: seasonality, more aggressive marketing policies adopted by some operators, and favorable expectations on the subscriber side.

i-Free analysts predict a minor market downturn in September and October, which is appropriate for the season, but is also accounted for by the ongoing recession which continues to erode incomes and make consumers watch their spending.

«We would like to believe that traditional content sales will stay firmly on the growth track from now on, but we cannot be sure,» admitted Mr. Petrov. «However, the fact alone of this favorable dynamic happening in the sector after a months-long free fall is reassuring and inspiring.»
i-Free has posted its mobile content index in the Market Pulse section of its corporate website at www.i-free.com since 2008. The website also offers other useful information and news from the industry: weekly updated mobile content ratings, relevant media publications, surveys on all kinds of pressing issues, and innovation news.

The i-Free website also features its management's personal blogs where they will discuss Russian and international mobile content topics with any interested persons.