Powerpoint

Mobile media
Erlend Krogstad
Telenor and I
• Telenor is a major telecom company:
– 175 million mobile customers in Nordics, Eastern Europe and Asia
– 1,7 million fixed internet customers in Nordics
– 1,9 million fixed telephony customers in Nordics
– 1,8 million TV customers in Nordics
– NOK 106 000 000 000 in revenues in 2009
• Erlend is a media researcher:
– Hold a master degree from Department of Media and Communications Univeristy of
Oslo and KwaZulu Natal
– Research officer Telenor Global Business Development & Research
– Doing media research and business development for Telenor companies
– Canal Digital in the Nordics
– Telenor Consumer market in Nordics
– Mobile companies globally
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Index
• What is telecom?
– Telenor as a telecom company
• Telecom and media, how it relates
– Adjacent industries and current challenges
• What is mobile media?
– Mobile media players
– Business models and trends
• How Apple changed the mobile media market
– From iPod to iPad
• The future of mobile media, some thoughts
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Index
• What is telecom?
– Telenor as a telecom company
• Telecom and media, how it relates
– Adjacent industries and current challenges
• What is mobile media?
– Mobile media players
– Business models and trends
• How Apple changed the mobile media market
– From iPod to iPad
• The future of mobile media, some thoughts
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Traditional telecom business
•Traditional communication services
– Fixed voice/telephony and Internet
– Mobile voice/telephony, SMS and Internet
• Relation to media services
– TV and radio transmission
– Intermediary position, not vertically integrated in media business
– Not content owners
– Not content producers
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Telenor today
Infrastructure:
– Copper network
– GSM and 3G mobile network
– Building 4G mobile network
– Digital terrestrial TV network
– Satellite TV network
– Cable TV network
– Fiber Optical network
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Services:
– Fixed telephony on copper and
cable
– Internet on copper, 3G/GSM and
cable
– Mobile telephony on 3G and GSM
– TV on all networks
Index
• What is telecom?
– Telenor as a telecom company
• Telecom and media, how it relates
– Adjacent industries and current challenges
• What is mobile media?
– Mobile media players
– Business models and trends
• How Apple changed the mobile media market
– From iPod to iPad
• The future of mobile media, some thoughts
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Telecom and media business today
• Some telecom players are becoming media business :
– TV, movies, games and music, e.g. Telenor, Orange ++
– Growing revenues from media products have proven difficult for telecom
players
– Becoming a media business is expensive and risky
• Some telcom players are positioning as lean enablers:
– Facilitator of distribution and transmission for media -and internet companies
• Traditional media players are doing over-the-top business
– increasing options for distribution – standardized internet technologies
– shorter way to consumer (possibly fewer “middlemen”)
• New global players are introducing new business models – Apple,
Google, Microsoft
– global scale give them advantage in distribution of media content
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Media space is getting congested..
• Media industry is affected by several adjacent industries
–
Consumer electronic vendors like Apple and Samsung
–
Internet companies like Google and Amazon
–
Telecom companies like Orange in France
• Access to attractive content is key to success for these companies
–
Copyright is a powerful tool for content providers
–
Still no place to buy US movies online outside the US
• Media companies are increasingly taking position as telecom providers
–
Get, Comcast, BSkyB are all taking position as Internet and telephony providers
–
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Regulation has made it “cheap and easy” for anyone to provide telecom services such
as Internet and telephony
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Index
• What is telecom?
– Telenor as a telecom company
• Telecom and media, how it relates
– Adjacent industries and current challenges
• What is mobile media?
– Mobile media players
– Business models and trends
• How Apple changed the mobile media market
– From iPod to iPad
• The future of mobile media, some thoughts
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Mobile media is digital
• Music
Non-digital media
• Videos and movies
• Newspapers
• TV
• Books
• Books (audio & text)
• FM radio
• Online newspapers
• Games
• Podcasting
• Mobile web
• Radio
• ++
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What mobile media do consumers want????
Telenor figures
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2007
2 years ago: mobile media is not taking off….
20
Ukentlig
Daglig
15
10
10,6
10,5
10,5
10,8
10,2
9,2
5
3,8
3,5
4,1
3,8
3,4
3,2
9,1
3,6
10,4
10,4
10,3
4,5
4,3
4,4
9,5
3,9
0
Uke 626 2005
13
3Q
2005
00 Month 0000
4Q
2005
1Q
2006
2Q
2006
3Q
2006
4Q
2006
1Q
2007
2Q
2007
3Q
2007
4Q
2007
1 year ago – mobile media is not taking off….
20
Ukentlig
Daglig
15
10
10,6
10,5
10,5
10,8
10,2
9,2
5
3,8
3,5
4,1
3,8
3,4
3,2
9,1
3,6
10,4
10,4
10,3
4,5
4,3
4,4
11,1
11,5
11,9
11,1
9,5
3,9
5,1
4,8
4,5
5,3
0
Uke 626 2005
14
3Q
2005
00 Month 0000
4Q
2005
1Q
2006
2Q
2006
3Q
2006
4Q
2006
1Q
2007
2Q
2007
3Q
2007
4Q
2007
1Q
2008
2Q
2008
3Q
2008
4Q
2008
Today – mobile media finally taking off…
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News is a driver for mobile web adoption –
but utility services are coming
Daily
Weekly
Totalt Mobil
318
212
VG Mobil
354
Totalt Mobil
152
143
82
VG Mobil
74
69
Dagbladet Mobil
Gule Sider Mobil
NRK Mobil
Finn Mobil
TV 2 Mobil
Andre Mobil
109
0
50
97
77
44
87
57
34
69
65
49
69
45
20
Aftenposten Mobil
NRK Mobil
4Q 2009
3Q 2009
4Q 2008
100
150
Finn Mobil
217
145
200
250
Andre Mobil
300
350
400
287
249
80
106
Gule Sider Mobil
33
20
12
29
29
18
22
16
8
TV 2 Mobil
190
148
135
Dagbladet Mobil
37
49
37
22
41
Aftenposten Mobil
445
615
571
213
0
100
200
306
300
4Q 2009
3Q 2009
4Q 2008
390
400
500
600
700
Tall i tusen
Kilde: Forbruker
& Media. 4Q 2009. www.tns-gallup.no/medier
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Europe: 10-20% use mobile internet – close
to mass adoption…..
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The problem and the possible solution for
mobile web
• Poor user experience and confusing pricing has slowed
adoption of mobile web services
• Apple changed everything with iPhone and iPod Touch
– Good user experience – touch screen and icon-based user interface
– Easy development of applications (good System Developer Kit)
– Flat-rate pricing of mobile data
• Other mobile phone manufacturers are increasing focus on
touch and user experience
• Media companies are facilitating mobile experience
– Focus on adapting web-pages to mobile screens
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Mobile music – a business changing form…
• Download of full track songs is not a high revenue business for mobile operators
•
–
Low margins on songs and albums
–
Side-loading of music from computers
–
Revenues from ring-back tones and ringtones
Highly competetive environment
–
AppStores
–
Streaming services
–
Pirated downloads
• Going towards providing 3rd party music services like Spotify and Wimp
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–
Streaming of music
–
Option to buy and download
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Mobile-TV – slow consumer adoption
86% of Norwegians are aware of mobile-TV
NRK, TV2 and Viasat set to launch mobile-TV
in April 2009
9% 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
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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
0
Teleplan 2008
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5
10
15
20
25
30
35
40
45
50
Mobile TV – no success case
• 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
–
Low consumer acceptance
–
Uncertain business model
–
Poor user experience
• iPad might do for TV what iPod/iPhone did for music
–
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Lower prices and spread adoption
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E-books and audiobooks
• Telenor launched “lydbok” in 2007 – not very successful
– Digibok already has taken that niche market..
• Local/national e-book solutions are coming but has lost
momentum to the Kindle and is in danger of becoming
• Amazon’s Kindle has introduced a new business model for this
industry
– Amazon distribute books with only one mobile operator globally
– At&t grants amazon access to mobile networks globally through
roaming agreements
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Mobile media going forward
• Apple and Amazon are examples of how adjacent industries are
affecting media business
– Media and telecom no longer the strong duo
• Actors from 4-5 major industries are affecting media industry
– Consumer electronics (Apple, Nokia, Microsoft, Samsung ++)
– Mobile operators (At&t, Orange, Vodaphone ++)
– Internet businesses (Amazon, Google ++)
– Software (Microsoft, Apple, adobe ++)
• Content owners are in danger of becoming commoditized
– Apple and Amazon have lower prices and margins for content industry (music
and books)
• Web is going mobile and will be at the centre of the mobile media
development going forward
– Major internet companies and conusmer electronics
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Business models for mobile media – some
milestones
• 1999: content provider access
– Enabling 3rd party services over mobile networks – highly
successful
• 2003-2006: 3rd generation mobile networks (3G)
– Brought higher speeds for mobile data access
– Catered for more advanced services like music and TV/video
• 2007: iPhone introduces the AppStore
– Enabling 3rd party services on mobile deveices
– New business model for the entire industry – highly successful
• 2009-2010: everyone else introducing AppStores….
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Enabling 3rd party services is key for further
growt in mobile media
1999: 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
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CPA revenue share model introduced
3rd party enabling
Mobile TV
Games
Music
Sms TV
Pictures
Ringtones
Approximately NOK1 000 000 000 per year
Telenor`s customers
Netcom`s customers
$
$
$
$
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Gov.
$
$
AppStores are enhancing 3rd party
enabling
Mobile TV
Games
Music
Podcasts
Games
Ringtones
Apple
Amazon
$
$
$
$
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Gov.
$
$
Apple and others are forcing operators to leave
the traditioal mobile Internet model…
Mobile services
$
Mobile Service Provider
$
Consumer
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$
$
$
… in favor of the traditional fixed Internet model
Internet services
Internet Service Provider
$
Consumer
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Index
• What is telecom?
– Telenor as a telecom company
• Telecom and media, how it relates
– Adjacent industries and current challenges
• What is mobile media?
– Mobile media players
– Business models and trends
• How Apple changed the mobile media market
– From iPod to iPad
• The future of mobile media, some thoughts
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How Apple has changed the rules of the mobile media
industry…
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June 2007
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January 07: from Apple Computer Inc to Apple Inc
Apple Inc has gone from being a computer manufacturer to becoming a
leading global mobile device and media business!
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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"
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Apples portable device strategy started with
iPod
•iPod rapidly became a major success - More than 200 000 000
iPods sold in 8 yrs
– iTunes made the devices more attractive – lots of available content and
a free media player software
• Hardware/devices is still the business
• Content is important and generate value for Apple through the
AppStore
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Apple has proven that good experiences creates user
needs – opportunity to grow beyond traditional service
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Index
• What is telecom?
– Telenor as a telecom company
• Telecom and media, how it relates
– Adjacent industries and current challenges
• What is mobile media?
– Mobile media players
– Business models and trends
• How Apple changed the mobile media market
– From iPod to iPad
• The future of mobile media, some thoughts
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The future of mobile media – some thoughts
• iPhone changed the market and will continue to set the
standard for devices and business models in years to come…
• Nexus One – Google phone – next disruptor?
– Introducing ad-funded services
– Introducing internet-based communication services on mobile
devices
• 11% of mobile owners now access social networks on their
phone – this will increase rapidly
– 31% of smart phone user access facebook, etc on mobile (iPhone and Andriod phone users)
– 7% of basic phone users access facebook, etc on mobile
– Access to Facebook via mobile browser grew 112 percent in the
past year, while Twitter experienced a 347-percent jum
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Mobile-TV will happen with web at its core…
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Social media might change communication
and media consumption on mobile
Messaging
Telephony
Address book
Photo and
Videos
Games
TV
Music
Videoconferencing
Facebook and other social media are truly taking
enabling positions across entertainment and
communication services
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“Every industry that becomes digital eventually
becomes free”
Chris Anderson 2008
http://www.youtube.com/watch?v=RZkeCIW75CU
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