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A whole new world has opened up to application developers in the last few years – the Smart TV market is rapidly growing, following the pattern of the smartphone rise a few years back. Every TV device today provides dozens of applications in it, offering a variety of services - from VOD content through meditation and aerobic classes to live classical concerts.
Content can be easily distributed to homes around the world, and an app developer who comes up with a brilliant idea, the rare kind, can get worldwide traction to his application.
But as most developers know, creating top level content is not enough. The real challenge is monetizing the content and generating income from the time spent developing the app and all its aspects. Even when the content is good, even very good, the vast majority of customers who want to buy it, won't.
Over 98% of willing customers will drop out at the actual point of transaction due to one major factor: Billing.
Let's take Vonetize as an example. Vonetize is an application development company that distributes Smart TV VOD content. Six months after introducing its Bollywood Movies application, 0.5 million customers downloaded the app and almost a 100% of them started actually using it.
The conversion ratio of those 0.5M potential customers who started the billing process to those who actually completed it was a mere 1.4%(!). Vonetize couldn't justify any business model with such low conversion ratios, given the high cost of premium content and technology that went into the app. And this, mind you, was top-notch content of its genre with very high traffic and interest, worldwide!
Searching for a billing solution to raise its monetization Vonetize found some disturbing facts about today's billing: TV Platforms and manufacturers such as Samsung and LG have no inherent Smart TV billing solution, and the traditional web billing solutions are not suited for Smart TVs.
Vonetize was very close to close up shop due to low monetization and no solution in sight. Just like Bollywood, there are many highly successful applications, up and running with high demand, that aren't monetizing their content.
Why is that?
Most Smart TV billing solutions that do exist today work by using a pairing code - sending customers to register on a website. That means getting off the couch. Most customers bail out at this point. If they did plow through this stage, they are given a complicated code to punch back in the TV screen. Another big chunk of potential customers are lost.
Other methods of billing work with e-Wallets. These services require the customer to register and enter his personal information – name, email address, password, etc. Again faced with a complicated process that now requires the use of a keyboard - most customers drop out instantly.
The third billing solution, carrier billing, uses the customer's mobile phone – sending an SMS and receiving again a complicated code to punch in the TV screen. In addition to the same hassle we saw before, carrier billing also means that not all carriers have an agreement with that billing solution = again, loss of potential customers.
Yet, there are billing services that work to encourage customers to complete the billing process, making it easy for the app developers to generate actual revenues.
After using SmartPay.tv, Bollywood saw conversion ratios go up to an amazing 11%. That's 8 times the customers just by getting the right monetization method!
No getting off the couch. No need for UI keyboard – customers only punch in numbers, using the remote control. No registration required. In addition, customers only punch in their Credit Card numbers ONCE. After that everything can be purchased with a four-digit PIN code the customer creates himself – the payment is 'out of sight, out of mind' and the customer doesn’t feel he's paying each and every time.
SmartPay.tv is a global Credit Card billing solution for Smart TV applications.
Focusing on the customer, we provide a User friendly UI and fully in-TV remote control billing. No external websites needed. Our solution has been certified by major manufacturers and is fueling the monetization of some of the world's leading Smart TV applications and services.
The SmartPay integration process takes 5 minutes - register on our website www.smartpay.tv (totally FREE), copy and paste 2 lines of code and your app is ready to accept payments.
AND we charge NO setup or integration fees, and NO monthly minimums or fixed costs for developers. The fees are per-transaction only, as low as 2.2% per transaction, with global reach.