According to Marc Jarrett, business development manager for PasswordByPhone, Europeans have been reluctant to use credit cards to purchase adult content online — hence the popularity of bill-by-phone options throughout the continent — but as more providers choose DRM-protected content, the need for phone billing grows.
“Phone billing for DRM-protected content is a valuable alternative for content providers offering premium and exclusive content,” Jarrett said. “Phone billing can be used for both subscriptions and pay-per-view content and is well suited for both video and music content.”
But the phone-billing trend is gaining power across the globe, as users look for anonymous ways to access content and webmasters search for alternatives to credit card billing.
“Phone billing also seems to be catching on in the U.S,” MediaKey CEO Leon Standly said. “So demand is expected to go up significantly as content providers are struggling with member retention and to maintain credit card processing relationships.”
While Connecticut-based MediaKey’s primary focus is on DRM content protection, it’s the marriage between content protection and billing that Standly sees as the defining draw of the new venture.
“Obviously our primary role is to provide rock-solid content protection, but in effect, our selection of integrated billing options has proven to be a competitive edge,” Standly said.