Does exclusivity pay?

Does exclusivity pay? I've asked numerous carriers and content executives this question a number of times over the past two years and I think I can confidently say the answer is no. I don't believe exclusive content delivers operators an edge. And I don't think consumers will churn from one carrier to another just because the operator has exclusive content they can't find elsewhere.

Why am I so confident in my opinion? Take a look at Cingular Video, now known as Cellular Video. When Cingular Video made its debut in December 2005 it was already about a year behind its competitors Sprint and Verizon in introducing a streaming video offering. Cingular smartly added something neither of its competitors had--exclusive content from HBO. And not just any content-the Cingular/HBO deal included snippets from the cable network's critically-acclaimed series such as "The Sopranos," "Entourage" and "Curb Your Enthusiasm."

Of course, the exclusive HBO content came with a price. Cingular (now AT&T) charges customers $19.99 per month for the basic content package and another $5 per month for the HBO content or $3 per month for the HBO family package that included cartoons and comedy clips.

I've heard AT&T also paid a hefty price to HBO to offer the content exclusively to its customers, but I'm fairly sure it hasn't reaped the rewards of that deal. After its initial marketing push in March 2006, when HBO launched the new season of its hit series "The Sopranos," I haven't heard much about Cellular Video or the HBO content. In fact, when I went the AT&T Web site to look for Cellular Video, it wasn't particularly easy to find.

I suspect uptake hasn't been strong. In interviews I've had with HBO executives and in those I've read in other publications, they have been lukewarm about the potential of mobile content. This is a far cry from other cable TV content providers which have been quick to add mobile executives to their content teams with the sole purpose of inking deals with mobile operators.

I think exclusive content may create an initial buzz and generate some excitement but in the long term I don't believe it translates into more usage or more customers for wireless carriers. Email me or post a comment and let me know your thoughts. -Sue [1]