Content Futures

Mobile Entertainment & Commerce
...the analyst view

Edition Two - 17th January 2007


 

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Lead Stories

 

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

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… again

Visa, 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


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


Jobs


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


 

Marketplace



Market Research Report: Mobile Gambling Markets Re-Assessed

(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

Price: £750 (Single User License) £1250 (Multi User License) £1750 (Enterprise Wide License)

For more information go to http://www.juniperresearch.com/shop/viewreport.php?id=82

Publisher:
Juniper Research | Author: Bruce Gibson | Whitepaper


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© 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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