Index. Telenor R&I. Mobile Media. 250 researchers, various background. 5 research groups
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1 Mobile Media Media Economics lecture Telecom and traditional media business Telenor R&I 250 researchers, various background Economy Technical engineering Programming Sociology, anthropology, psychology, ethnology Media and communication 5 research groups Business Models Products and markets Service platforms Network technologies New business 1
2 Traditional telecom business Traditionally communication services Fixed voice/telephony and Internet Mobile voice/telephony, SMS and Internet Media services TV and radio transmission Intermediary position, not vertically integrated in media business Not content owners, not content producers Telecom business today Becoming a media business is the new mantra for telecom players: TV, movies and music Few telecom actors have succeeded Traditional media distributors are fighting back e.g. retailers such as Platekompaniet Copyright is a powerful tool for content providers Still no place to buy movies online outside the US In fact, media/tv companies are increasingly taking position as telecom providers Get, Comcast, BSkyB are all taking position as Internet and telephony providers Regulation has made it cheap and easy for anyone to provide telecom services such as Internet and telephony Becoming a media business is expensive and risky 2
3 Telenor as media business Provide infrastructure Copper network GSM and 3G mobile network Analogue terrestrial TV network Digital terrestrial TV network Satellite TV network Cable TV network Fiber Optical network* Telenor services Provide services Fixed telephony on copper and cable Internet on copper, 3G/GSM and cable Mobile telephony on 3G and GSM TV on all networks 3
4 Mobile media is digital Music Videos and movies Live TV Books (audio & text) Games Podcasting Mobile web Radio Non-digital media Newspapers Books FM radio Telenor`s mobile music store Download of full track songs from a database of more then tracks Download and stream of music videos Music news and reviews from the largest national newspapers Best of MTV and MTV news stream service Stream music channels from MOOX 4
5 Mobile TV Common way of watching TV in Korea and Japan Commuting to and from work is the ideal time slot for watching mtv 7 million users in Korea choose between mulitple TV channels on mulitple terminals (not only mobile phones ) Italy is the first European country to fully deploy mobile-tv services Mobile broadcast network Few dedicated mobile-tv services running due to low consumer acceptance and uncertain business model Content Provider Access (CPA) CPA represents several products enabling content providers to deliver content to mobile subscribers and at the same time bill the subscribers for using the service. By doing this mobile operators have made their value chain accessible to content providers of mobile services, based on a revenue sharing transaction model in return. Today CPA supports billing by SMS, MMS and Internet/WAP 5
6 CPA revenue share model Mobile TV Games Sms TV Ringtones NOK per year Music Pictures Telenor`s customers Netcom`s customers Gov. Aspiro - mobile media Ringtones Games Mobile-TV Wallpapers Ringbacktones 400 Million Kroner per year 6
7 Telenor mobile music store 2 million songs downloaded users tried it (10% of Telenor`s customers) use it monthly songs downloaded every month Average download for service is 3 songs per month Over 55% of the users says they will download more than 3 songs the following month People in all ages and both genders use the service and women are slightly overrepresented 75% of the users say they will use the service again Telenor figures January 2008 News portals on mobile web Ukentlig Daglig 10 10,5 10,6 10,5 10,8 10,2 9,2 9,1 9,5 10,4 10,4 10,3 11,1 11,5 11,9 11,1 5 3,5 3,8 4,1 3,8 3,4 3,2 3,6 3,9 4,5 4,3 4,4 5,1 4,8 4,5 5,3 0 Uke 6-3Q Q Q Q Q Q Q Q Q Q Q Q Q Q 2008 Usage of mobile portals in % use mobile portals weekly 16% of males use mobile internet 6% of females use mobile internet 15% of year olds weekly 18% of year olds weekly Marginal increase from 2007 Totalt Mobil VG Mobil Telenor Entry/Djuice Dagbladet Mobil NRK Mobil Aftenposten Mobil TV 2 Mobil Finn Mobil Andre Mobil Q Q Q
8 Mobile-TV consumer adoption 86% of Norwegians are aware of mobile-tv NRK, TV2 and Viasat set to launch mobile-tv in April % have tried to watch TV on their mobile phones Only 4% have tried mobile-tv the past year Only 1% use mobile-tv Teleplan 2008 Barriers to mobile-tv adoption TV on my phone is not interesting Better overview over prices Lower prices Easier access to content More interesting content Larger screen on phone More user friendly phones Higher bandwidth Teleplan
9 What mobile media do consumers want???? Telenor figures 2007 How Apple has changed the rules of the mobile media industry 9
10 January 07: from Apple Computer Inc to Apple Inc Apple Inc has gone from being a computer manufacturer to becoming a leading global media business! Apple committed to bringing the best personal computing, portable digital music and mobile communication experience to students, educators, creative professionals, businesses, government agencies, and consumers through its innovative hardware, software, peripherals, services, and Internet offerings. to provide its customers with new products and solutions with superior ease-of-use, seamless integration, and innovative industrial design. Slogan iphone: "Touching is believing" Portable strategy ipod a major success More than ipods sold in 7 yrs iphone has disrupted the mobile phone market since million units sold worldwide iphone and ipod touch is setting a new standard for mobile internet browsing and mobile media Seamless integration with itunes Store, the world`s leading online music store Hardware/devices is business Content is complimentary 10
11 Nokia s expansion with Internet Now, in what marks the next phase of Nokia s evolution, we are increasingly providing consumers with experiences in music, navigation, video, television, imaging, games, business mobility and the Internet through our devices. An integral part of this experience-led strategy is for our advanced devices to be tools of choice for people participating in the Web 2.0 phenomenon. With an estimated 850 million Nokia users out there, we are positioned to connect more people to the Internet than any other company and we are actively aligning our strategy in pursuit of this major business opportunity. Our story continues... Nokia, company brochure, 2007 Nokia`s OVI portal 11
12 Nokia comes with music Nokia music store on N- series mobile phones and online N-series phones comes with a one-year free music subscription New business model for music industry Present mobile media Mobile web and mobile-tv is not yet commercially successful Mobile web is seeing a shift towards mass adoption Mobile-TV has stagnated in it s current form The CPA model has made music, ringtones and games the current driving forces in mobile media.but mobile-tv and mobile web ++++ will come, it`s all about finding the model that cater for: Innovation on service and applications new content and interactivity Sustainable business models including 3rd party funding (advertising) Improving technology Bringing the open Internet to mobile might disrupt the current mobile media business 12
13 Mobile web model Mobile services Mobile Service Provider Consumer Traditional Internet model Free services on internet Internet Service Provider Consumer 13
14 Every industry that becomes digital eventually becomes free Chris Anderson 2008 Chris Anderson the economy of free The Internet logic and mobile media New mobile phones are network agnostic: WiFi, EDGE, 3G, HSDPA, Wimax.. Browsers are network agnostic Services becoming network agnostic The iphone represent all these trends, SE, LG, Samsung and Motorola is following suit New devices and new networks combined threatens telecom companies position as service providers CPA regime is threatened 14
15 Example: Mobile-TV must be offered for free Internet logic + digital media becomes free is why mobile operators should offer service like mobile-tv for free Mobile-TV is complementary to existing TV Reinforcing traditional TV business Bundle with existing TV subscriptions Reduce number of customers churning from voice and sms Create a new advertising space Revenue from sms/tv interaction Context TV, music and movies are offered for free on web Pirate sites Legal services like NRK web-tv, Hulu and Spotify gaining popularity Mobile is next in line. People will expect to access their content anywhere and anytime. for free New media platforms enhance rather than substitute old platforms More media is consumed every day Bring social element to traditional media Companies who can facilitate a seamless media experience will win consumers in the future 15
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