DCB payments thrive in the digital entertainment market

Nov 17, 2023

The Emerging Sportech Opportunity

 

As we leap into the digital age, an increasing number of consumers are embracing Direct Carrier Billing (DCB) as their preferred method for paying for digital content and services. As a player in the mobile payment ecosystem, we are pleased to present our 2023 DCB market report, based on data from Juniper Research, our trusted market research partner with an extensive database of mobile telephony services. In our commitment to fostering the growth of Direct Carrier Billing and meeting these evolving demands, we will delve into its rising popularity among European consumers and explore how our efforts to simplify the payment process have significantly enhanced the user experience in this dynamic sector.

Despite ranking fourth in Europe, behind Germany (22%, €3.284 billion), the United Kingdom (17%, €2.602 billion), and France (12%, €1.765 billion) in DCB billing, Spain’s digital content industry shows signs of consolidation. On average, a Spaniard is projected to spend about €46 per month on digital services through their mobile operator by 2023.

Our Chief Operations Officer, Roberto Monge, places his confidence in DCB as it increasingly establishes itself as a recurring and secure payment model among the newer generations. Monge notes that smartphones continue to be the primary payment device worldwide, accounting for 60% of total DCB spending.

 

“DCB is becoming a popular and secure payment choice, especially among younger generations who are big fans of mobile entertainment. These users are used to doing everything on their phones, so it’s natural for them to use DCB for payments. In fact, smartphones are still the top choice for payments worldwide, making up 60% of all DCB spending”

Roberto Monge – COO at Telecoming

 

Digital games and videos as main markets in Spain

In Spain, digital gaming significantly contributes to the revenue generated through mobile payment technology, with nearly 57% of Spaniards admitting to engaging in mobile gaming last year. Projections indicate that Spanish users will invest €806 million in the gaming industry via DCB in 2023, a figure expected to rise to €1.188 billion by 2027.

Video content is also gaining popularity, driven by the creation and immediate consumption of immersive formats on social networks. It is estimated that Spanish users will spend €198 million on video content through DCB this year, increasing to €364 million by 2027.

Interestingly, spending on music is projected to grow from €69 million to €109 million over the next four years. In 2022 alone, 17 million Spaniards used audio streaming service platforms, with 5.2 million of them opting for premium subscriptions.

 

 

ePublishing and lifestyle: rising sectors

Turning our attention to the DCB lifestyle market in 2023, we find that it’s expected to be dominated by five European countries, accounting for a substantial 75% of its total volume. The annual growth rate in spending on mobile lifestyle services is projected to reach an impressive 21%, outpacing both the European average of 14% and the global average of 11%..

Let’s now shift our focus to the world of ePublishing. In the year 2023, it’s expected that the average Spanish user will dedicate around €13 per month to ePublishing, and this number is forecasted to rise significantly to €36 per month by 2027. Spain’s ePublishing sector is gearing up for substantial expansion, with a projected 21% increase in 2023, surpassing the previous year’s growth by four percentage points. The trend of mobile billing for digital editorial content is also on the upswing, with estimates indicating a surge from €155 million in 2023 to a substantial €435 million by 2027. When it comes to DCB-based spending on digital publications, Spain is positioned to shine, potentially outpacing other European nations, with the exception of the UK.

In recent years, Direct Carrier Billing (DCB) has expanded its reach into various industries, including ticketing. France led the way in 2022, commanding 59% of the total spending by European customers. Although still a relatively nascent sector, ticketing is exhibiting signs of robust growth.

Discover the full report in collaboration with Juniper Research here!

 

Stay tuned!

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