MEF: Sales errors cost providers 10% of revenue

Mobile media providers are squandering as much as 10 percent of gross revenues due to inconsistent and inaccurate content sales reporting, according to a study by global trade association the Mobile Entertainment Forum. While the MEF said 93 percent of mobile industry members surveyed believe accurate content sales reporting is critical to the industry's longevity, a multitude of different reporting styles are affecting business across the value chain--one in two respondents said they receive as many as 50 different types of reports, compounded by the absence of clear reporting lines within the value chain. In addition, 42 percent told the MEF their reports are inaccurate, resulting in loss of revenue, wasted resources and reduced investment in mobile content.

The MEF said it is working with industry stakeholders to devise best-practice guidelines for content sales reporting, targeting timeliness, relevance, accuracy and consistency of reports. The challenge: 37 percent of respondents said they want real-time statistics, 15 percent want daily reports and 22 percent prefer weekly and monthly reports.

"It is clear this consultation has only scratched the surface, but it is a major step in uncovering the depth of this issue and how it directly affects revenues across the board," said MEF policy and initiatives director Suhail Bhat in a prepared statement. "The mobile entertainment market is now a huge global force with revenues exceeding $25 billion yearly--our systems and processes need to reflect this in order to take the industry to the next level."

For more on the MEF report:
- read this release

Related articles:
MEF: EU's TV regulation needs clarifications
MEF: Mobile advertising is ideal strategy