| The predictions are that mobile content - pictures, | | | | as broadband and is not always available. Poor pricing |
| audio, video and games - will be a massive market | | | | policies have compounded these problems. High |
| within the next few years. What are the | | | | profile Premium Rate rip-offs combined with |
| opportunities and threats for developers of that | | | | confusing charges has resulted in many mobile users |
| content? Mark Brill from Ping Corporation Ltd looks at | | | | steering well clear of anything that may involve a |
| the issues for mobile content, and what the future | | | | premium rate SMS for downloading. Although flat rate |
| may hold. | | | | data pricing is common place in the UK, the charges |
| The Opportunities | | | | for accessing data abroad are still over £7 per |
| All of the research shows that mobile content is | | | | megabyte. |
| going to be massive in the next five years. Screen | | | | Compatibility |
| digest estimated the value of this content to be | | | | A variety of operating systems, screen sizes and |
| £5.46bn a year by 2011. A 2006 Gartner | | | | screen ratios make delivery of pictures, video and |
| Survey estimated that mobile content would be | | | | audio somewhat problematic. This is largely a technical |
| worth a less conservative $78 billion within the next 5 | | | | issue for developers rather than the content creator. |
| years. | | | | However the fact that there are few standards in |
| We have already seen a 'first wave' of mobile | | | | mobile operating systems means that in the end the |
| content, largely dominated by ringtones and | | | | user will suffer. One poor experience with mobile |
| backgrounds. However the predicted 'second wave' | | | | content can put a user off for a very long time. |
| of mobile content is almost upon us and it is | | | | Low Premium Rate SMS Payouts |
| expected to generate greater revenues, with a | | | | Whilst Premium SMS (PSMS) offers some great |
| longer lifespan than the first wave. | | | | opportunities for both micro billing and non-credit card |
| What will bring about this second wave? | | | | billing systems, the payouts offered by the networks |
| The growth in mobile content will be driven by | | | | are very low. For a £1.50 PSMS that the user |
| improvements in technology such as higher resolution | | | | pays (£1.26 after VAT), the operator and |
| screens, better software and improved data | | | | aggregator will take over 30p. This figure can be |
| connections, such as 3G. Handset technology is | | | | much higher on some networks. This leaves little |
| converging with internet technologies through the | | | | over 90p for the content provider, creator or |
| introduction of devices such as the I-phone and the | | | | developer. |
| impending Google Phone. The line between phone, | | | | It means that the content provider can be forced |
| music or video player and PDA is becoming seamless. | | | | into a position of charging considerably more for |
| At the same time the mobile phone operators are | | | | mobile content than when it is delivered though credit |
| reviewing their pricing policies for data. Until recently, | | | | card billing on a web-site. |
| the cost of downloading was a few pounds per | | | | The Possibilities |
| megabyte. This was a major barrier to downloading | | | | With all these draw backs you may be thinking that |
| content. Most of the operators in the UK are now | | | | there is little point in pursuing the Mobile Goldmine. |
| offering a flat rate for data, following a similar model | | | | However the potential of the mobile content market |
| to home broadband. | | | | clearly exists. The issue, as with any new information |
| Premium SMS offers a simple revenue model allowing | | | | technology, is to ensure that the needs of the user |
| micro payments to be taken quickly. Identifying a | | | | are understood and clearly met. |
| phone number through SMS also allows for easy user | | | | The convergence argument suggests that as we |
| and age verification with content restriction to | | | | adopt more I-phone style handsets the line between |
| unregistered phones. The growth of 3rd party | | | | mobile and web will disappear. Simply put, there is no |
| developers will continue. Many industry observers | | | | need for developers to worry about mobile content |
| regard D2C (direct to consumer) as the most likely | | | | specifically as we will all have the web on our phones. |
| area to succeed with the most engaging content and | | | | Looking at the threats outlined above, it is clear that |
| the best user experience. | | | | a division will remain between the internet and mobile. |
| With over 3 billion phones worldwide, mobile | | | | Inevitably small screen sizes and keypads will always |
| technology is in wider use than PC-based internet | | | | create a different experience for the user. If I look |
| access or television. As such it has the potential to | | | | at my own usage of mobile internet, I will |
| become an enormously powerful tool for selling and | | | | acknowledge an email, but not write a lengthy reply. |
| distributing content. A goldmine for mobile content | | | | Whilst I may search for a film showing time or check |
| providers. | | | | an address on my web connected phone, I would |
| Selling onto mobile | | | | not use it to book a flight or make a bank transfer. |
| Typically the route to market is as follows: | | | | That is, as much as anything else a practical |
| * Content is created - pictures, video or audio | | | | consideration of what it is possible to do with a small |
| * The content provider sells through a distributor - | | | | keyboard or screen. |
| such as Player-X or direct to the consumer via a | | | | Understanding the Technology |
| platform such as immedia24. | | | | The key to accessing the Mobile Goldmine is to |
| Distributors will generally work with operator portals, | | | | understand the relationship between a user and the |
| such as Vodafone Live or T-Mobile's T-Zones. This is | | | | technology. For example, we relate to our TV quite |
| always operated on a revenue share - the content is | | | | differently to our PC and the web, even though |
| not bought outright, but the revenue from Premium | | | | these days the technologies are similar. |
| SMS is shared between the portal, distributor and | | | | What is the relationship between a user and their |
| content developer. | | | | phone? |
| A D2C platform, such as immedia24 offers | | | | * Primarily it is for SMS (over 4 billion are sent each |
| considerably more control over the content and a | | | | month in the UK) and phone calls |
| larger revenue share. Potentially it has a higher | | | | * It is a means of storing phone numbers - over |
| audience than the operator portal simply because | | | | 60% of people use their mobile as their main, often |
| many operators insist on exclusivity for content. The | | | | their only address book |
| disadvantage is that there is no existing mobile | | | | * It is a means of killing time - playing games or |
| customer base. D2C works well where there is | | | | sending messages while waiting for a bus, train or |
| already an audience through the web or other media, | | | | friend |
| or where there is an advertising budget to see the | | | | * The phone is linked to personal identity |
| content. | | | | This last point is significant. For many people, the |
| The Threats | | | | phone that they own, the ringtone or the |
| In spite of some great opportunities, there are still | | | | background are all statements about how they see |
| many problems with creating and delivering mobile | | | | themselves. It is a highly personal item that is with |
| content. | | | | them almost of the time. We have seen this in our |
| Mobile Internet is accessed by only 23% of mobile | | | | studies with teenage mobile users, where their phone |
| users in the UK. Although at over 15m people that is | | | | is now more significant to their peers than the |
| still a considerable market, it is not as ubiquitous as | | | | clothes or the trainers they wear. Two years ago |
| SMS. | | | | the Motorola Razor was the best selling phone, even |
| Whilst there are many people who can create great | | | | though it performed the worst in usability tests. It |
| mobile content, the route to delivery is problematic. | | | | was sleek, flat and came in bright pink. These factors |
| The mobile operators have generally regarded | | | | were more important than the practical |
| themselves as the key providers of mobile content, | | | | considerations. |
| assuming that most people will want to download | | | | Thus the key to successful mobile content is to |
| through their portals. However, it has been shown | | | | develop specific content that meets the needs of |
| that the mobile users do not regard their operator as | | | | the user. The first key to success is good usability. It |
| a trustworthy content provider. Operator | | | | is estimated that for each additional click required to |
| Interference The operators have tried to restrict 3rd | | | | access content, the provider will loose 30% of it's |
| party content in many ways. Unlike an internet | | | | potential audience. |
| service provider, the mobile operators' online | | | | It should then engage the user in a way that |
| connections are made via their portals. Not only do | | | | supports their identity. In some areas, such as music |
| they restrict which sites can be accessed, but they | | | | or sport it is quite straight forward to engage at this |
| often alter the content itself. Ostensibly this has been | | | | level. In sectors such as the film or television, it may |
| under the guise of formatting the content for mobile, | | | | prove to be harder requiring more creative skills and |
| however there are examples of operators altering | | | | ideas. It is also important to view mobile content not |
| the display of 3rd party sites to remove much of the | | | | as an end in itself, but as a tool to enhance the |
| functionality and ruin the user experience. | | | | user's experience across many platforms, such as the |
| Poor User Experience | | | | web, television or cinema. There are numerous |
| The problems with poor user experience also relates | | | | examples where the web has successfully been used |
| to both the handsets themselves and the route to | | | | to enhance and support more traditional media and |
| delivery. Whilst screen resolution, memory and | | | | mobile may be used in the same way. |
| functionality have improved on many handsets, | | | | Ultimately the best approach to developing mobile |
| usability can still be poor. The I-phone for example | | | | content is not to be driven by the capabilities of the |
| has been plagued with problems - everything from | | | | technology, but rather to understand the user's |
| the battery life to high data charges. In the UK the | | | | relationship with their phone and produce clever and |
| I-phone will be locked to the O2 network. So if you | | | | engaging content. |
| want to change networks you will simply be left with | | | | © Mark Brill, Ping Corporation Ltd, 2007. |
| a £400 brick! | | | | This article was written to accompany the Own-IT |
| At the point of download user experience has been | | | | seminar, The Mobile Goldmine?, in October 2007. |
| equally poor. For example 3g in the UK is not as fast | | | | |