SPOTLIGHT: Free market

Content owners must offer more free programming on mobile devices in order to create demand for premium mobile content, according to a new white paper issued by consumer research firm Parks Associates and entertainment technology think tank Entertainment Technology Center. In "How Hollywood Can Out-Apple Apple," Parks Associates reports that less than 10 percent of Internet users are willing to purchase a digital movie download at current price points, citing Apple's model--i.e., offering bargain-priced content in order to sell higher-margin products for its own benefit--as an approach that can drive consumers to new theatrical releases, TV programming and made-for-mobile content. "Hollywood shouldn't let Apple make all the money, especially since they are the ones making the movies," said Parks Associates director of research John Barrett in a prepared statement. "Judicious use of free mobile content can help drive ticket and DVD sales."