Content Futures

Mobile Entertainment & Commerce
...the analyst view

Edition Six - 14th February 2007


 

 

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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


Jobs



Java/J2EE Developer Mobile Music Content Provider

 

£35k to £40k

London

 

Develop the company’s bespoke media management systems + integration to a number of mobile service providers. Java / J2EE skills including Struts, JSP, XML, AJAX on a Tomcat platform.

 

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 based European Sales Director to lead their expansion into EMEA. Selling focused market information to the Mobile Operators and endusers, you will have a proven new business track record selling research services to these. With at least 10 years experience in the research industry you will have spent at least 5 of these working within the wireless sector. Possibly with a background in analytical research you will be able to demonstrate the ability to identify, analyze and deliver syndicated research services to Marketing departments.

 

Contact: sallyh@iconicresources.com for further information


If you would like to promote your job in this newsletter please email: jobs@contentfutures.com

Marketplace

Market Research Report: Consumer MVNOs

Current Status, Future Markets & Strategies (2006-2012)

Price: £1490 (Single User) £1990 (Multi User) £2990 (Enterprise Wide)

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


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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

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