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Mobile Entertainment & Commerce ...the analyst view
Edition Six - 14th February 2007
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Dear Industry Executive
3GSM SPECIAL: Greatest mobile show on Earth raises more questions than it answers
This
week’s ContentFutures comes to you from Barcelona, where the World’s
mobile industry has decamped for the week to debate, demonstrate and
remonstrate on how the mobile content and services industry will
develop over the coming 12 months at 3GSM.
And the key areas
that are hot this year aren’t too different from those that were hot
last year… or the year before that, come to think of it. Mobile TV,
location based services and over the air music downloads have been
mooted for years. Again they are top of the agenda here. They are
joined by relative newcomers advertising and search and discovery, but
what is of interest this time out is how, as communications continues
its relentless convergence, even these mobile content and services are
converging.
Here at 3GSM we are seeing a coming together of
location, search and advertising to form a compelling single offering
that serves the consumer, the advertiser, the content provider and the
network operator better than any one on their own could.
And it
is this forming of rounded offerings that is really exciting: for once
you can actually taste success with mobile services. The hype may be at
an end….
… that said there are many surveys from within the
industry doing the rounds that suggest that consumers are overloaded
with services, can’t work their handsets and are still wary of costs. A
timely reminder, then, that the future’s bright, but that we are not
necessarily out of the woods just yet.
Yours
Paul Skeldon
paul.skeldon@contentfutures.com
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3GSM: Mobile video — all the rage, but are users ready for it?
One
of the hottest topics at 3GSM this year is Mobile TV, with countless
companies showing what it can do, how to make it work and how to make
money from it. But a survey of 22,000 European mobile users
commissioned by Tellabs reveals that a high percentage of early
adopters of mobile TV and video services are snubbing a second
helping.
The research, conducted by M:Metrics in the United
Kingdom, Germany, Italy, France and Spain, brought up an interesting
issue: on average, former users of mobile TV and video outnumber
current users by more than 19 per cent. Users cited price, quality and
reliability issues as the main reasons why they do not come back for
more.
Forty-five per cent of European mobile video and TV users
cited pricing issues as a factor causing them to switch off the
services. And nearly a quarter (24 per cent) of users who tried mobile
video and TV stopped using the services due to concerns about service
quality and reliability.
Despite this, launches of mobile TV
services are everywhere at 3GSM. At 12.00 noon local time on Monday,
CNN broadcast its first 3G news report, showcasing its new CNN mobile
service, first mooted last week in ContentFutures.
More popular
is mobile video streaming services, which are also abundant at 3GSM.
Many platform providers are on hand launching mobile media platforms
for all contetnt, but many are concentrating their marketing efforts at
least on showing what can be done with video, vis a vis Echovox’s Zong
platform.
Read More: http://www.tellabs.com/news/2007/nr021207.shtml
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3GSM: Search — not as popular as everyone likes to think?
While the mobile industry is
labouring under the impression that 89 per cent of mobile internet
users regularly find stuff through search, a study by the Mobile
Entertainment Forum published at the show, indicates that just 20 per
cent actually do. However, those that do tend to buy more premium
content than those that don’t.
Ringtones, music tracks and games
all command a premium and subscribers appear willing to pay for it –
only 17 per cent of respondents were put off searching by cost. This is
particularly important with industry respondents citing ‘increased
downloads’ (50%) as the most important quantifier of successful search
mechanisms followed by return visits (31%). Interestingly, searching
for mobile content isn’t purely limited to the 18-35 year old
demographic with an average of 64 per cent of those aged 35-64
searching for ringtones. It is still early days for the
mobile search industry and the primary barriers to uptake are cited by
subscribers as not knowing how to use the search engine (23%) and not
thinking about using mobile search on their phone (19%) – however, a
huge 98 per cent know where to find the search engine. This
suggests that the industry needs to promote the benefits of mobile
search more actively as well as educating consumers on how to use it to
find relevant content.
The key growth area — and perhaps the key
to better search — lies in its tie up with mobile advertising (see
below). JumpTap and Openwave used the show to announces a strategic tie
up that will leverage their expertise in mobile ads and mobile search
to try and make life easier for consumers.
Read More: http://www.mobile-ent.biz/New-mobile-ad-play-from-Openwave-and-Jumptap
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3GSM: Ad funded content — is mobile the marketeer’s preferred channel?While
advertising around search is becoming a key issue in content discovery,
3GSM in Barcelona is all abuzz with talk of the mobile channel
increasingly becoming the digital channel of choice for marketers: it
is personal, direct and immediate.
On the back of this much is
being launched around the mobile advertising space, both the fund
content services and to target the marketing world.
Timo T.
Laaksonen, Chief Executive Officer of First Hop, tells me that:
“Advertising and mobile will finally meet in 2007. The First Hop Mobile
Advertising Solution [being launched at 3GSM] allows the operator to
quickly ad-enable its whole service delivery platform. Mobile has the
potential to become the preferred digital marketing channel with
promotion and advertising being targeted at a single user level. Mobile
operators that deploy the solution will be able to generate significant
new revenue streams by being in a position to attract big brands and
external advertisers.”
The solution allows operators to offer
mobile advertising, ad-funded services, or branded and sponsored
content using person to person messaging, multimedia broadcast, and
browsing services. The solution also enables the operator to develop
new subscription models such as ad-funded content services. Mobile
operators will be able to roll out a service model which offers users
free content or free text or minutes in exchange for receiving
advertisements.
Read More: http://www.firsthop.com/press/13022007.html
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3GSM: Location, location, location — bringing it all together?Finding
a late night bar to carry on the indepth interviews here in at 3GSM has
never been simpler, thanks in the main to the host of location-based
services that are being demo-ed at the show.
Long vaunted
location-based services — especially mapping, but not restricted simply
to that — are coming of age. The technology is there to do it, as ably
demonstrated by numerous companies. Now consumers seem to be switching
on to the idea too.
In particular the tie-up between location,
search and advertising — which ties up most of this show’s key themes —
is very prominent. While I have been using it to find late night eats
and drinks, many others see my location as an ideal way to push special
offers to me and even content relating to where I am.
Outside of
the press corps I may be alone, ‘normal’ users seem to prefer movies to
margaritas, according to local-search specialist M-Spatial, which has
an index of what people look for.
Pushing branding, advertising,
coupons and more to phones, however, as you near or pass a shop seems
to be the real killer application right now. Look out for it on a high
street near you.
Read More: http://www.m-spatial.com/news_and_events/news/local_view
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3GSM: Music — giving Apple a run for its money?Music
services for mobile have long been overshadowed by iTunes and the
launch of the long-awaited iPhone last month seemed to cement Apple’s
place as the leader in digital music; a position that could see mobile
music fail to reach any sizeable market share.
That was until
Omnifone, a UK-based mobile music company, this week announced a
collaboration with Musiwave, an Openwave company, the leading provider
of mobile music entertainment services to operators and media companies
worldwide, to distribute MusicStation, a revolutionary
‘all-you-can-eat’ mobile music service, that works on all major music
handsets.
For a fee of only £1.99 per week MusicStation provides
subscribers with unlimited localised Over the Air (OTA) downloads to
their mobiles from Musiwave’s end-to-end music platform.
This
shakes things up a bit. Now over the air downloads are a reality
(network operator data pricing permitting) this relatively cheap all
you can eat model could be the key to challenging iTune’s stranglehold
on the market as well as promoting the mobile channel as a music
consumer’s paradise. All that needs to happen now is for someone to
sort out the DRM…
Read More: http://www.omnifone.com/news_detail_musicstation_launch.htm
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3GSM: But is it all just too overwhelming and complicated for the users?While
3GSM is pitching some of the coolest mobile content and services
offerings to come in the next 12 months, many of the boffins behind
such services may be forgetting one important factor: the users. As an
important reality check, two separate studies are doing the rounds here
in Barcelona on how users are finding it increasingly overwhelming
trying to figure out how to use their handsets and the services they
connect to, much to the detriment of the industry.
Service
management company Olista, has found that up to 55 per cent of
potential 3G users abandon VAS due to basic usability issues such as
difficulty navigating through menus, inability to find downloaded
content, or a forgotten password. The findings came from live
trials conducted by Olista and European mobile operators to identify
the common barriers to potential 3G portal and content users. Further
statistics showed that users are confused between streaming and
download, an issue further hampered by the bad billing experiences
affecting 10 to 25 per cent of users who receive multiple downloads of
the same content. This makes disappointing reading and shows the
gap between the number of customers who could use VAS and the number
who actively do is huge.
Function fatigue is how the CMO
Council puts it in its Global Mobile Mindset Audit, a milestone study
of some 15,000 consumers in 37 countries, showing that “too many
functions I did not use” is the number one device problem in all
regions of the world.
Compounding this complaint were
disappointments in the early buying and ongoing ownership experience.
Most notably, consumers gave low marks to retailers and carriers for
lack of product demonstrations, sales associate knowledge, as well as
slow service at point-of-sale.
One answer has been the on device
portal (ODP), popularized by SurfKitchen and Orange, which claim the
companies, has seen a doubling in content downloads since the ‘Orange
Downloads’ ODP service was launched last year.
Read More: http://www.fameforusers.org/news/pr.html#021207
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Upcoming Events |
Network Convergence
IRR, 19th-22nd February 2007, Barcelona
IIR's
highly successful Network Convergence conference offers network
operators a rare and valuable chance to compare notes on NGN evolution.
While standards evolve and new technologies develop, real progress is
taking place in service provider networks. Supporting adventurous
convergence and Next-Gen service strategies that are essential for
survival.
Visit: http://www.iir-events.com/IIR-Conf/page.aspx?id=4420
Fixed-Mobile Convergence
IRR, 26th-1st March 2007, Munich
IIR's third Summit
will bring together thought leaders from across the world to share
news, best practice and insights into the increasing convergence in the
telecoms, broadband and media worlds. With high-level participation
from the most innovative and important companies in the world, this is
not to be missed.
Visit: http://www.iir-events.com/IIR-Conf/page.aspx?id=4419
Machine to Machine 2007
BIRP, 6th-8th March 2007, Paris
Already represented within RTS and Display 2006, MTOM will gather in 2007 the more representative companies of the field.
In
parallel, 2 conferences days will offer the best opportunity to make an
inventory on M2M, give the words to the users and connect technologies
and the multiple concerned industries sectors needs.
Visit: http://www.birp.com/MtoM/MtoM_2007/en/index.htm
The 9th annual Carriers World Asia 2007
Terrapinn, 13th-15th March 2007, Hong Kong
Carriers
World Asia brings together both international and Asian carriers to
evaluate new revenue streams in an environment of changing technologies
and new market opportunities. The 9th annual Carriers World Asia 2007
will provide solutions to operators and create a strong platform to
accommodate the demands of carriers around the world. This event will
cover the very latest updates on technologies and strategic advances in
this field including
Visit: http://www.terrapinn.com/2007/cwa_hk/index.stm
If you would like to promote your event in this newsletter please email: marketing@contentfutures.com
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Develop
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Send your most up to date CV through to j.odonnell@pathwayresourcing.com or call on 0207 292 6868.
EMEA Sales Director - Research Services
£60k base, £100k OTE
UK
Leading US based provider of syndicated research to the Mobile industry seeks a UK
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Selling focused market information to the Mobile Operators and
endusers, you will have a proven new business track record selling
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research industry you will have spent at least 5 of these working
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research you will be able to demonstrate the ability to identify,
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departments.
Contact: sallyh@iconicresources.com for further information
If you would like to promote your job in this newsletter please email: jobs@contentfutures.com
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Marketplace |
Market Research Report: Consumer MVNOs
The
defining nature of what constitutes an MVNO is often difficult to
grasp. This report cuts through the uncertainty, and clarifies the
market while affording valuable insight and direction for industry
players. It combines a detailed market status from strategically
important regions, with an exhaustive range of market forecasts, and
case studies of successful implementations around the globe.
For more information go to http://www.juniperresearch.com/shop/viewreport.php?id=83
If you would like to a advertise your product or service in this newsletter please email: marketing@contentfutures.com |
ContentFutures.com is a publication of Juniper Research Limited
© 2006 Juniper Research Limited ® All rights reserved
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Editor: Paul Skeldon - paul.skeldon@contentfutures.com
Publisher: Tony Crabtree - tony.crabtree@contentfutures.com
Advertising & partnership opportunities Contact: marketing@contentfutures.com Telephone: +44 (0)1256 830002
Press releases and market information: paul.skeldon@contentfutures.com
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