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Mobile Entertainment & Commerce ...the analyst view
Edition Two - 17th January 2007
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ContentFutures
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Dear Industry Executive,
An end to the charge of the daft brigade?
Following
last week’s launch issue, ContentFutures.com has received some very
favourable feedback, with many of you pointing out what is set to be
the key issue facing the industry for the first few months of 2007:
data pricing.
It has long been the bete noir of the content
industry. You know the scene: consumer decides to see what all the hype
about mobile content is, downloads a realltone for £3 and then finds
£15 data charge on his bill and never uses mobile content services
again. This problem, caused by huge over-pricing of data transmission
services is coming to a head.
Everyone is calling for the
mobile networking operators in the UK to look seriously at going for an
all you can eat subscription charge for data. 3 is working with its X
tariff which is designed to offer users a flat fee of a £5 for data
usage per month. T-Mobile’s Web ‘n’ Walk does similar for £7.50 pcm.
The
other network operators have to follow suit if content services are to
take off. It is the biggest restriction facing the industry at present
and is, in most people’s opinion, the one thing that is holding content
services back from reaching their true potential.
With many new
services — such as user generated content, social networking,
full-track music downloads and interactive gaming — all ready to roll
out, the one thing that is making them impossible to monetise is the
cost of accessing data via mobile. It seems that the days when
"consumers will pay a premium to use mobile” are at an end.
Yours
Paul Skeldon
paul.skeldon@contentfutures.com
Sign up today: http://contentfutures.com/subscribe.htm
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Musical youth driving content loyalty — but marketeers and operators aren't getting in on the act
The
Wireless World Forum (W2Forum) has published its 2006 edition of Mobile
Youth — its survey of what drives the youth market — and concludes
music services are the key driver of the mobile content market for 14
to 24 year olds.
That’s why services such as MySpace, Limewire
and Last.fm are so popular, says the study. Mobile music services and
mobile user-sites are also likely to capitalise on this. But, says
W2Forum, mobile music services need to move beyond simply adding mp3
playback functionality to handsets, mobile services that let you
explore more music are essential.
Services such as QR codes,
Shazam and Camera Search – a Japanese service that lets you download
music by snapping a CD cover with your cameraphone — are the future of
making mobile music more interactive and personalised.
“Music,
for youth, is a social thing,” comments W2Forum analyst Jan Kuczynski.
“In the past teenagers have made compilation tapes for their friends
and swapped CDs. Music services can use the mobile and the web to do
this and, if implemented correctly, sharing can be an effective
marketing tool.”
The study also finds that that while youths’
love of mobiles is surpassed only by their indifference to the networks
which run them, driving churn. Network operators really need to work
out how to tap in to as a brand if they are to cut down on youth churn
— or simply resign themselves to being pipes.
The study also
concludes that the marketing industry also seems to be failing to
understand the e-Youth market. Youth today is bombarded with hundreds
of marketing messages and advertising recall rates have fallen
dramatically since the 1970’s and we are now in a transitional period
where traditional marketing techniques aimed at increasing the reach of
a marketing message are becoming less effective, but marketeers have
yet to develop effective strategies and metrics to move to a new
marketing paradigm focused on relevance. It is a paradigm lost.
As
a personal, networked device, the mobile offers brands unique
opportunities to attract and engage young consumers with messages
relevant to them. And reeling it in, McDonalds in Japan used the mobile
as part of a highly targeted, marketing campaign for a limited edition
burger. The burger achieved sales four times that of previous limited
edition menu items.
Read More: http://www.w2forum.com/i/mobileYouth06_part_two
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Older users will pay for more ‘private social networking’
Last year was certainly the year
of social networking, both online and increasingly towards the end of
the year, on mobile too. But where it has so far been seen as the
preserve of the youth market, analyst Jolyon Barket, head of Deloitte’s
technology, media and telecoms practice believes that 2007 will see
many propositions for online and mobile social networking services
aimed squarely at the older end of the market.
“Social
networking’s appeal has so far been strongest among younger demographic
groups,” he says. “However, in 2007 older age groups could prove to be
a lucrative opportunity for online and mobile social networks as these
groups would be far more willing to pay for privacy.”
While this
seems oxymoronic to pay for privacy when exhibiting yourself in public,
Baker believes that a greater degree of privacy online would encourage
more people to share their uninhibited moments with their intimate
circle avoiding prospective employers or existing peers.
“Premium
subscriptions, in addition to the guarantee of privacy, could also
offer a range of value-added services from voice messaging to group
chat, from online storage to web and wap-page design,” he says. “As
premium users are likely to be older and less technologically literate,
technical support may also be in demand, ideally on a paying basis.”
Read More: http://www.deloitte.com/dtt/section_node/0,1042,sid%253D1012,00.html
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Video in text messages — the easy way to deliver rich content? Media
company Sparrowhawk Media has launched an innovative new video
messaging service based around ordinary SMS, which, it says, takes
mobile video mobile comms to a new level of entertainment and
interactivity, by allowing users to append video clips text messages
and then send them either from PC to mobile or from mobile to mobile.
To
date, mobile content has been focused around downloads, where users
purchase content for their own personal usage. While Sparrowhawk’s
TxtBIG! clips can be downloaded for personal use too, its key
differentiator is its gifting proposition allowing users to exchange
video or picture clips with their own text message attached.
TxtBIG!
is based on the belief that mobile phones are for communication,
presenting a huge potential to develop a service that enables more
creative texting communication. But users are not so enamoured
with complex 3G services, when they have a perfectly good 2.5G
phone.
“The TxtBIG! service breaks new ground in mobile video
communication,” says Derek Evans, Managing Director of the company
“Whether it’s ‘Congratulations’, ‘You’re Dumped’, ‘I Love You’ or fun
sporting banter, TxtBIG! provides an enhanced message for each and
every occasion and will appeal to anyone who uses texts as a form of
communication.”
Read More: www.sparrowhawkmedia.com/
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Bollywood goes mobile in GSMA backed global initiative It’s
no surprise that, with 130million mobile users in India alone and many
million more fervent Asian film fans, Bollywood is going mobile.
Roamware and Hungama Mobile have joined forces with the GSM Association
(GSMA) to launch a ‘Mobile Bollywood Initiative’ to create short movies
tailored for mobile devices, taking the world’s largest film industry
onto mobile devices around the globe. In conjunction with
the GSMA, Hungama Mobile and Roamware have teamed up with leading
Bollywood film maker, Sanjay Gupta, to premiere three Bollywood short
movies for the mobile medium. These films will be premiered at the
GSMA’s 3GSM World Congress in Barcelona next month,
“Bollywood
is a massive presence in the world movie industry, and South Asia
represents the fastest growing mobile market in the world. I am
thrilled to have the opportunity to be involved in a project that has a
promise and the potential to create a whole new distribution model for
Bollywood cinematic entertainment,” says Sanjay Gupta, who is well
known for directing several super-hit movies including Kaante and
Musafir. “Our project ‘Dus Kahaniyah’ has been made keeping the mobile
and digital medium in mind and the fact that today the market for short
films has been given a huge impetus as the quality of video experience
on mobile has improved significantly.” Indian cinema is
now dubbed in over 35 languages and accounts for as much as 18 per cent
of theatrical business in markets such as UK. Indian films have made it
into the top 10 charts in markets such as USA, UK, Germany, Australia,
Singapore and South Africa.
Read More: http://www.gsmworld.com/news/press_2007/press07_03.shtml
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Visa and Nokia use NFC to create mobile wallet… againVisa,
the world's biggest credit card payment system administrator, has
launched a global system to turn mobile phones into wallets for
millions of customers in a deal with the world's top handset producer,
Nokia. Users can pay for groceries and other purchases by swiping a
phone over a reader that electronically communicates with a microchip
on the phone. Phone owners confirm the purchase with the push of a
button and the deal is complete. The service will bring
together NFC (Near Field Communication) chip technology and standards
developed by the Mobile Payment Forum, and will also allow users to
manage their accounts and make peer-to-peer payments. Brendan
Logan, managing director of telecommunications industry consultancy
Logan Orviss, commented: “This is further evidence of the erosion of
the control that mobile service providers have historically had over
the handset manufacturers as 3rd party payment and content providers
seek to leverage their branded assets more effectively.”
However,
this isn’t the first time Nokia and Visa have promised us these
services. As far back as 1999, the two companies pledged to offer these
services, which take advantage of the fact that the chip on a chip and
PIN card is effectively a SIM. Perhaps this time it will come to pass.
Read More: http://www.nokia.com/press
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IPTV challenges traditional TV, but is it really the realm of the telcos?British
consumers will be trading in the traditional broadcast model of TV
scheduling in favour of on-demand TV over their broadband connection,
according to new, independent research commissioned by Tiscali, the
broadband and media company. The Tiscali TV Trends Report 2007
reveals that despite not knowing what the term ‘IPTV’ means, 63 per
cent of UK adults would prefer to watch on-demand programmes on their
TV sets, via their broadband connection.
However, other studies
carried out by independent analysts suggest that it is folly for telcos
to try and pursue a strategy of trying to become media and content
companies. Forrester Research finds that, while 11 Western European
incumbent telcos have launched IPTV services, most have been met with
low consumer interest and only moderate revenue potential.
After
a slow ramp-up, Forrester predicts one in four European xDSL/fiber
broadband subscribers will have IPTV within 10 years. However, this
average masks a big gap between the UK, where we only expect 13 per
cent penetration, and France, where Forrester expects 33 per cent IPTV
penetration in year 10.
Analysts at Gartner go further,
suggesting that telcos investing in diversifying into media and content
to make up for falling voice revenues, risk diversifying too far from
their core businesses and ending up possibly having to retrench and
simply become ‘fat pipes’ in to the home for others to offer services
over.
Read More: http://www.tiscali.com/our_news/
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Upcoming Events |
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
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The First Annual Global Sports Betting Conference
ATE Online, 26th–27th March 2007, Vienna
BetMarkets is the
only global senior level sports betting conference. It tackles the most
significant issues affecting the industry, such as: developing
strategic and marketing success in emerging markets; confronting legal
change; and developing effective technological solutions in betting
shops, payments and multiple platforms. BetMarkets brings together high
ranking professionals who want to network and learn in a dynamic and
fruitful environment.
For more information please contact Stephen Jury at sjury@ateonline.co.uk
Visit: www.bet-markets.com
Global Distribution and Delivery of Digital Entertainment
C5, 26th-27th March 2007, Barcelona
C5’s Global Distribution
and Delivery of Digital Entertainment will cover vital current topics
including convergence, new technologies and developments in P2P file
sharing. Experts will examine how technology defines and redefines the
rules of distribution whilst addressing the legal and business
implications of digital entertainment distribution.
For more information please contact: Tom Holbourn t.holbourn@C5-Online.com
Visit: www.c5-online.com/digitalentertainment
The Next Wave of MVNOs
Jacob Fleming, 27th-28th March 2007, Madrid
The main purpose
of this event is to provide delegates with an insight on how to set up
a compelling MVNO model and to evaluate best business opportunities for
future growth. During this two-day event our participants will have the
chance to learn from in-depth case studies, gain valuable knowledge of
the latest trends and establish lasting business relationships.
For more information please contact Silvia Anderson at silvia.anderson@jacobfleming.com
Visit: http://www.jacobfleming.com
If you would like to promote your event in this newsletter please email: marketing@contentfutures.com
Author/Analyst - Mobile Media/Content
Juniper Research is looking to supplement its existing Analyst base with a number of new freelance author analysts.
If you have good knowledge of the sector and posses excellent analytical and written skills, then please submit your CV to analysts@juniperresearch.com
J2ME Developer
Mobile content development house, London has an opportunity for a J2ME Developer.
You will join an expanding team in the niche area of mobile premium services. Skills include Java, J2ME, J2EE and Struts.
£38k to £45k.
Send your most up to date CV through to j.odonnell@pathwayresourcing.com or call on 0207 292 6868.
Senior J2EE / J2ME Server Software Developer
London
Mobile Technology innovator has an opportunity for J2EE / J2ME Server
Software Developer. Cutting edge technologies in the mobile media world. Skills include J2EE, J2ME and EJB’s.
£50k to £60k, private health care and contributory pension.
Send your most up to date CV through to j.odonnell@pathwayresourcing.com or call on 0207 292 6868.
If you would like to a post a job in this newsletter please email:
jobs@contentfutures.com |
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Marketplace |
(Post US Legal Changes), 2006-2011
Following the US legislative action to make most forms of on-line gambling illegal in the USA, Juniper Research have reassessed its forecasts for mobile gambling.
Coverage: Worldwide: Regions include North America, South America, Europe, Asia Pacific & Rest of World
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Publisher: Juniper Research | Author: Bruce Gibson | Whitepaper
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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
Advertising & partnership opportunities Contact: marketing@contentfutures.com Telephone: +44 (0)1256 830002
Press releases and market information: paul.skeldon@contentfutures.com We
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