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A increasing number of small mobile content providers are using a new, much more direct method of getting their products into the hands of customers.

These companies have discovered the benefits of selling their wares directly to customers through brick-and-mortar stores, and offline promotions. San Jose-based PlayPhone Inc., for example, is selling to prepaid gift cards towards mobile games, ringtones, wallpapers, and music videos, via retail channels, rather than relying on distribution deals with carriers.

This growing "off-portal" approach allows for a much higher profit margin for the content providers, and currently accounts for about one third of all digital content sales. The business model as a whole reportedly generated a total of almost .4 billion globally in 2005.

(Originally published by TeleClick.ca on April 13, 2006)

About the Author: Jeremy Maddock is a well-known technology blogger who writes about cell phone carriers and the telecommunications industry in general.