Comments on: Mobile Industry Doesn’t Get Consumers http://gigaom.com/2006/03/03/mobile-industry-doesnt-get-consumers/ Tracking the Internet Evolution Tue, 07 Oct 2008 09:10:50 +0000 http://wordpress.org/?v=MU hourly 1 By: C. Enrique Ortiz http://gigaom.com/2006/03/03/mobile-industry-doesnt-get-consumers/#comment-45529 C. Enrique Ortiz Fri, 17 Mar 2006 21:12:11 +0000 http://gigaom.wordpress.com/2006/03/03/mobile-industry-doesnt-get-consumers/#comment-45529 <p>Typo, sorry… I meant: "Content in general is king and will drive revenues."</p> Typo, sorry… I meant:
“Content in general is king and will drive revenues.”

]]> By: C. Enrique Ortiz http://gigaom.com/2006/03/03/mobile-industry-doesnt-get-consumers/#comment-45528 C. Enrique Ortiz Fri, 17 Mar 2006 21:10:54 +0000 http://gigaom.wordpress.com/2006/03/03/mobile-industry-doesnt-get-consumers/#comment-45528 <p>Let them spend the millions. Content in general is kind and will drive revenues. Let them experiment with the next logical thing -- streaming. Why not? </p> <p>I recently got one of those Sprint phones as part of their Ambassador program, and even though I don't see myself watching TV on the phone, I have to say, the service is much better and smoother than what I was expecting. Such content will become the next "casual" content. </p> <p>ceo</p> Let them spend the millions. Content in general is kind and will drive revenues. Let them experiment with the next logical thing — streaming. Why not?

I recently got one of those Sprint phones as part of their Ambassador program, and even though I don’t see myself watching TV on the phone, I have to say, the service is much better and smoother than what I was expecting. Such content will become the next “casual” content.

ceo

]]> By: Scott Rafer http://gigaom.com/2006/03/03/mobile-industry-doesnt-get-consumers/#comment-45527 Scott Rafer Fri, 17 Mar 2006 14:00:00 +0000 http://gigaom.wordpress.com/2006/03/03/mobile-industry-doesnt-get-consumers/#comment-45527 <p>Om, All incredibly predictable, no? In fact, it's been predicted in 1997 as you know well: http://isen.com/stupid.html Scott</p> Om,
All incredibly predictable, no? In fact, it’s been predicted in 1997 as you know well: (link)
Scott

]]> By: Jarle Nygård http://gigaom.com/2006/03/03/mobile-industry-doesnt-get-consumers/#comment-45526 Jarle Nygård Tue, 07 Mar 2006 10:39:30 +0000 http://gigaom.wordpress.com/2006/03/03/mobile-industry-doesnt-get-consumers/#comment-45526 <p>I feel somewhat proud that you used Norwegian in the example! Being a Norwegian it's not often our small country is used as an example.. ;)</p> <p>And, TV on the mobile phone? nah, not for me anyways..</p> I feel somewhat proud that you used Norwegian in the example! Being a Norwegian it’s not often our small country is used as an example.. ;)

And, TV on the mobile phone? nah, not for me anyways..

]]> By: Vinay R. Rao http://gigaom.com/2006/03/03/mobile-industry-doesnt-get-consumers/#comment-45525 Vinay R. Rao Tue, 07 Mar 2006 10:35:18 +0000 http://gigaom.wordpress.com/2006/03/03/mobile-industry-doesnt-get-consumers/#comment-45525 <p>The complete idiots at CNN, Foxnews and hundreds of other TV networks use video to beam out their tickers. So what's to stop regular low bandwith tickers from adding video content [such as analysts predicting doomsday] if a mechanism to send video becomes available? Anyway, my point was that low bandwidth, low resolution video may succeed but the higher bandwidth stuff is likely to be niche market. MMS and music are still downloaded to phones via USB/PC Links because using the wireless datalink is still too darn expensive. Only ringtones seem to be doing well if offered for free.</p> The complete idiots at CNN, Foxnews and hundreds of other TV networks use video to beam out their tickers.
So what’s to stop regular low bandwith tickers from adding video content [such as analysts predicting doomsday] if a mechanism to send video becomes available?
Anyway, my point was that low bandwidth, low resolution video may succeed but the higher bandwidth stuff is likely to be niche market.
MMS and music are still downloaded to phones via USB/PC Links because using the wireless datalink is still too darn expensive. Only ringtones seem to be doing well if offered for free.

]]> By: Onofrio ("Norm") Schillaci http://gigaom.com/2006/03/03/mobile-industry-doesnt-get-consumers/#comment-45524 Onofrio ("Norm") Schillaci Mon, 06 Mar 2006 18:46:57 +0000 http://gigaom.wordpress.com/2006/03/03/mobile-industry-doesnt-get-consumers/#comment-45524 <p>Maybe …</p> <p>About 5 years ago Mobile operators differentiated themselves on coverage, reach and quality. When was the last time you heard a pin drop or emphasis on reach?</p> <p>The market in its analog form was created as a Duopoly, the deployment of digital allowed for spectrum efficiency resulting in a more open market. Resulting in a market with a large number of mobile operators and their virtual counterparts serving demand side choices.</p> <p>The mobile operators need to increase ARPU in a competitive market while growing revenue – they have no choice but to seek alternative revenue streams in the current non-consolidated market.</p> <p>5 years ago, I never imagined that Ringtones would be a significant contribution to both their top and bottom lines. Boy was I wrong.</p> <p>The world is changing, enabled by technology. Last month I read an article about new patents and the companies behind them (http://www.forbes.com/2006/02/02/cx<em>rr</em>0202patentslide.html ). I saw a common theme, the market is moving to services that are either marketing tools and/or providing some level of entertainment. </p> <p>There’s even a satirical song by MC Lars ‘Download this song’ where he pokes fun not only at the music industry but technology companies enabling convergence, my favorite part of the song “ … Music was a product and now it’s a service”</p> <p>Entertainment enabled by technology is an opportunity for mobile operators to further differentiate themselves while providing alternate revenue streams.</p> Maybe …

About 5 years ago Mobile operators differentiated themselves on coverage, reach and quality. When was the last time you heard a pin drop or emphasis on reach?

The market in its analog form was created as a Duopoly, the deployment of digital allowed for spectrum efficiency resulting in a more open market. Resulting in a market with a large number of mobile operators and their virtual counterparts serving demand side choices.

The mobile operators need to increase ARPU in a competitive market while growing revenue – they have no choice but to seek alternative revenue streams in the current non-consolidated market.

5 years ago, I never imagined that Ringtones would be a significant contribution to both their top and bottom lines. Boy was I wrong.

The world is changing, enabled by technology. Last month I read an article about new patents and the companies behind them (http://www.forbes.com/2006/02/02/cxrr0202patentslide.html ). I saw a common theme, the market is moving to services that are either marketing tools and/or providing some level of entertainment.

There’s even a satirical song by MC Lars ‘Download this song’ where he pokes fun not only at the music industry but technology companies enabling convergence, my favorite part of the song “ … Music was a product and now it’s a service”

Entertainment enabled by technology is an opportunity for mobile operators to further differentiate themselves while providing alternate revenue streams.

]]> By: Anonymous http://gigaom.com/2006/03/03/mobile-industry-doesnt-get-consumers/#comment-45523 Anonymous Mon, 06 Mar 2006 13:04:52 +0000 http://gigaom.wordpress.com/2006/03/03/mobile-industry-doesnt-get-consumers/#comment-45523 <p>"What complete idiot would use video to stream a ticker?</p> <p>A ticker needs a few bytes of information a minute to keep up to date, the presentation can be rendered locally. You only need the data streamed. "</p> <p>Agreed - Mobile ESPN does it with a few bytes and so does Cingular's Media Net Live Ticker - w/o video.</p> “What complete idiot would use video to stream a ticker?

A ticker needs a few bytes of information a minute to keep up to date, the presentation can be rendered locally. You only need the data streamed. “

Agreed - Mobile ESPN does it with a few bytes and so does Cingular’s Media Net Live Ticker - w/o video.

]]> By: chy http://gigaom.com/2006/03/03/mobile-industry-doesnt-get-consumers/#comment-45522 chy Mon, 06 Mar 2006 02:35:55 +0000 http://gigaom.wordpress.com/2006/03/03/mobile-industry-doesnt-get-consumers/#comment-45522 <p>english professinoall mon do hurry permalink video to stream a ticker</p> english professinoall mon do hurry permalink video to stream a ticker

]]> By: ELS http://gigaom.com/2006/03/03/mobile-industry-doesnt-get-consumers/#comment-45521 ELS Sun, 05 Mar 2006 14:41:45 +0000 http://gigaom.wordpress.com/2006/03/03/mobile-industry-doesnt-get-consumers/#comment-45521 <p>"No one is talking of HDTV or even standard TV quality on a cell phone. Primary application would be for a video ticker such as the news channels, stock market reports, sports, etc."</p> <p>What complete idiot would use video to stream a ticker?</p> <p>A ticker needs a few bytes of information a minute to keep up to date, the presentation can be rendered locally. You only need the data streamed. </p> <p>C'mon people, think.</p> “No one is talking of HDTV or even standard TV quality on a cell phone. Primary application would be for a video ticker such as the news channels, stock market reports, sports, etc.”

What complete idiot would use video to stream a ticker?

A ticker needs a few bytes of information a minute to keep up to date, the presentation can be rendered locally. You only need the data streamed.

C’mon people, think.

]]> By: Vinay Rao http://gigaom.com/2006/03/03/mobile-industry-doesnt-get-consumers/#comment-45520 Vinay Rao Sun, 05 Mar 2006 09:26:35 +0000 http://gigaom.wordpress.com/2006/03/03/mobile-industry-doesnt-get-consumers/#comment-45520 <p>No one is talking of HDTV or even standard TV quality on a cell phone. Primary application would be for a video ticker such as the news channels, stock market reports, sports, etc. Today you can get SMS updates on cell phones but video feeds are just a matter of time. Even CNN and BBC don't have full screen TV on their websites. But, they do have a 1.5 inch window as default. Is that a coincidence? Most of the new web standards now have hooks for text to speech as well as display formats for cell phone based web access. However, the streaming TV to phones may be a pipe dream for now. The internet access network has been crippled with asymetric architectures so the true end-end applications are inefficient or impractical. This only leaves the streaming model requiring a fat backbone and fat downstream. I can count the number of countries who have that kind of backbone/access network in place on my fingers. Only a low resolution low bandwith video application stands any chance of becoming ubiquitous. Streaming TV may work in a handful of counties if people are really willing to pay for it.</p> No one is talking of HDTV or even standard TV quality on a cell phone. Primary application would be for a video ticker such as the news channels, stock market reports, sports, etc.
Today you can get SMS updates on cell phones but video feeds are just a matter of time.
Even CNN and BBC don’t have full screen TV on their websites. But, they do have a 1.5 inch window as default. Is that a coincidence?
Most of the new web standards now have hooks for text to speech as well as display formats for cell phone based web access.
However, the streaming TV to phones may be a pipe dream for now.
The internet access network has been crippled with asymetric architectures so the true end-end applications are inefficient or impractical.
This only leaves the streaming model requiring a fat backbone and fat downstream. I can count the number of countries who have that kind of backbone/access network in place on my fingers.
Only a low resolution low bandwith video application stands any chance of becoming ubiquitous. Streaming TV may work in a handful of counties if people are really willing to pay for it.

]]> By: Edward Cotton http://gigaom.com/2006/03/03/mobile-industry-doesnt-get-consumers/#comment-45519 Edward Cotton Sat, 04 Mar 2006 22:07:27 +0000 http://gigaom.wordpress.com/2006/03/03/mobile-industry-doesnt-get-consumers/#comment-45519 <p>The industry is placing a huge bet on content as the way of raising revenue per user. It's a risky strategy especially in the US, where the car is the dominant form of commuter transportation.</p> <p>However, there is some hope for the mobile industry. Recent research in the UK found people liked using their phone TVs at home. Somethng to do with the desire for control.</p> <p>http://eetuk.com/tech/news/showArticle.jhtml?articleID=181500567</p> The industry is placing a huge bet on content as the way of raising revenue per user. It’s a risky strategy especially in the US, where the car is the dominant form of commuter transportation.

However, there is some hope for the mobile industry. Recent research in the UK found people liked using their phone TVs at home. Somethng to do with the desire for control.

(link)

]]> By: Henrik Feldt http://gigaom.com/2006/03/03/mobile-industry-doesnt-get-consumers/#comment-45518 Henrik Feldt Sat, 04 Mar 2006 21:36:47 +0000 http://gigaom.wordpress.com/2006/03/03/mobile-industry-doesnt-get-consumers/#comment-45518 <p>The price elasticity of demand for mobile phones is highly elastic because of all the substitutes and because of the good price information distribution, so lowing prices increases total revenue ;).</p> <p>Basic economics.</p> The price elasticity of demand for mobile phones is highly elastic because of all the substitutes and because of the good price information distribution, so lowing prices increases total revenue ;).

Basic economics.

]]> By: ELS http://gigaom.com/2006/03/03/mobile-industry-doesnt-get-consumers/#comment-45517 ELS Sat, 04 Mar 2006 19:56:59 +0000 http://gigaom.wordpress.com/2006/03/03/mobile-industry-doesnt-get-consumers/#comment-45517 <p>You're never going to get " just-like-home-TV quality, instant-on, CNN, ESPN, Lost, CNBC, soaps" on a 1.5 inch diagonal cell phone screen. At home I have a 42 inch HD screen connected to 5 speakers. Tivo let's me watch what I want when I want to on a big screen. It's not like it matters when it's on.</p> <p>News, and other temporally significant programming might do well on a cell phone (although I think the lack of resolution might kill sports programming).</p> You’re never going to get ” just-like-home-TV quality, instant-on, CNN, ESPN, Lost, CNBC, soaps” on a 1.5 inch diagonal cell phone screen. At home I have a 42 inch HD screen connected to 5 speakers. Tivo let’s me watch what I want when I want to on a big screen. It’s not like it matters when it’s on.

News, and other temporally significant programming might do well on a cell phone (although I think the lack of resolution might kill sports programming).

]]> By: Anon http://gigaom.com/2006/03/03/mobile-industry-doesnt-get-consumers/#comment-45516 Anon Sat, 04 Mar 2006 19:09:58 +0000 http://gigaom.wordpress.com/2006/03/03/mobile-industry-doesnt-get-consumers/#comment-45516 <p>I've seen the focus groups personally; just-like-home-TV quality, instant-on, CNN, ESPN, Lost, CNBC, soaps… are going to be a huge success. We are all addicted to TV already - making it available when, where, and how consumers want it isn't such a giant leap. If you're stuck at the airport, have a long commute on a train, or find yourself watching 5 year olds play soccer -- live or Tivo'd TV on a cellphone is a necessity. Consumers don't know what they want until it's made available to them. Consumers polled said they'd never use a shopping cart in a supermarket, use an ATM card, or even use the web. The survey said 70% are NOT interested in TV on their phone. Let's see: 30% x 50 million = 15 million x $10/month = $150 million/month in revenue. TV on cellphones will be a monster. There may be a dotcom hiccup in the beginning, but dismiss this market at your peril.</p> I’ve seen the focus groups personally; just-like-home-TV quality, instant-on, CNN, ESPN, Lost, CNBC, soaps… are going to be a huge success. We are all addicted to TV already - making it available when, where, and how consumers want it isn’t such a giant leap. If you’re stuck at the airport, have a long commute on a train, or find yourself watching 5 year olds play soccer — live or Tivo’d TV on a cellphone is a necessity. Consumers don’t know what they want until it’s made available to them. Consumers polled said they’d never use a shopping cart in a supermarket, use an ATM card, or even use the web. The survey said 70% are NOT interested in TV on their phone. Let’s see: 30% x 50 million = 15 million x $10/month = $150 million/month in revenue. TV on cellphones will be a monster. There may be a dotcom hiccup in the beginning, but dismiss this market at your peril.

]]> By: Sridhar T Pai http://gigaom.com/2006/03/03/mobile-industry-doesnt-get-consumers/#comment-45515 Sridhar T Pai Sat, 04 Mar 2006 18:19:02 +0000 http://gigaom.wordpress.com/2006/03/03/mobile-industry-doesnt-get-consumers/#comment-45515 <p>The title of this piece - probably should read: US mobile industry doesnt get consumers. In Europe and Asian mobile industry, value added services (read music ring tones) have reached - cash cow - status. In India for example, voice calls cant get any cheaper (most are now - 'life time free' calling plans) and national long distance has touched 2cents (Rs 1/ per minute)! But music downloads are premium at 20cents (Rs 9) per download. At millions of downloads a day - the mobile content industry is on the cusp of a boom. 80 mil subscribers cant be wrong… Sridhar Pai</p> The title of this piece - probably should read: US mobile industry doesnt get consumers. In Europe and Asian mobile industry, value added services (read music ring tones) have reached - cash cow - status. In India for example, voice calls cant get any cheaper (most are now - ‘life time free’ calling plans) and national long distance has touched 2cents (Rs 1/ per minute)! But music downloads are premium at 20cents (Rs 9) per download. At millions of downloads a day - the mobile content industry is on the cusp of a boom. 80 mil subscribers cant be wrong…
Sridhar Pai

]]> By: ELS http://gigaom.com/2006/03/03/mobile-industry-doesnt-get-consumers/#comment-45514 ELS Sat, 04 Mar 2006 17:02:37 +0000 http://gigaom.wordpress.com/2006/03/03/mobile-industry-doesnt-get-consumers/#comment-45514 <p>I question how quickly advanced phones will gain market penetration.</p> <p>The carriers are getting squeezed big time on margins. If those margins continue to narrow can the carriers continue the HUGE handset subsidies they pay? If the carrier is no longer picking up 1/2 to 3/4 of the cost of a smart phone and the customer has to pay $400 or $500 for that handset, how many of them will they sell?</p> I question how quickly advanced phones will gain market penetration.

The carriers are getting squeezed big time on margins. If those margins continue to narrow can the carriers continue the HUGE handset subsidies they pay? If the carrier is no longer picking up 1/2 to 3/4 of the cost of a smart phone and the customer has to pay $400 or $500 for that handset, how many of them will they sell?

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