Mobile Media and Applications From Concept to Cash

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Mobile Media and ApplicationsFrom Concept to
Cash
Presenting
Staffan Ljung
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What does history teach us about the future?
Time to reach 25 adoption in key global markets
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Interest in Media Entertainment services
Mobile user
11
23
41
25
Game downloadservice
Young early adopters 11 Adult early adopters
23 Early Followers 25 Late Market 41
0
10
20
30
40
50
60
Source Ericsson Consumer Labs mobile users
survey, 2005
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What Multimedia is all about...
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What consumers want
Closeness
Convenience
Control
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Mobile media service creation
Telecom operators, telecom vendors
Grow the end-to-end mobile channel capabilities
Mobile devices
Mobile devices
Service network
Service network
increase defined creativity space to make the
mobile channel increasingly compelling
Access network connectivity
Access network connectivity
Traditional content suppliers
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The changing world of Multimedia
Changing behaviors for communication, media and
entertainment - Personalization Empowerment
- Fragmentation/Snacking - Customization and
tailored offerings
Consumer electronic evolution - Same user
experience overthree screens
Operators, media content providers and internet
companies partner and compete with different
assets and business models. Borders between
media, TV and telecoms are blurring e.g. Disney
becoming an MVNO, 3 incorporating MSN, etc
Broadband access (fixed mobile) Internet
technology everywhere
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The new battlefield . . .
Internet
Cable

• Communication Revenues
• Content Distribution Revenues
• Advertising Revenues
• E-commerce Revenues
• Support for other core business activities

Wireline
Wireless
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Highlighted cases

• Napster Cingular USA
• Solution provider and content aggregator
• Shazam music ID integration
• Solution with 2 million songs
• Cingular answer tones integration

• ONE Austria
• Technical provider and content aggregator
• Strategic partnership

• Maxis Malaysia
• Technical provider
• MDP re-launch with dual delivery, subscription
  bundling,

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Key components to deliver successful services
Integration of Technology Enablers
Translation of Customer Needs
Creating Winning Services

• It is key to have e2e solutions that consist of
  several easy to integrate components

Follow the end user needs
Building Market Channel Access

• All service offerings must have a plan how to
  reach the hands of the users

Source Mobile Media and Applications form
concept to cash Wiley Sons 2005
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Mobile Music . . .- Still an early market

• User behaviour
• Desire to leverage mobile device into music
  device
• Download or streamed music on sporadic basis, not
  everyday
• Internet players e.g. iTunes controlling the
  stage
• Focus on business models pricing strategy in
  order to compete
• Some operators positioning mobile phone as
  enabler for music, rather than as a distribution
  channel

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Details that matters
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New Relases
Artist Page
Track Page
Top Tracks
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Key learnings over the service launch cycle

• Common failures
• Parochial agenda, biased evaluations
• Overly complex analysis not linked to revenues
• Technically focused
• Poor risk evaluation
• Untested commercial assumptions
• Rationing delegated to production

• Common failures
• Rarely carried out at all
• Revisionist approach often adopted, no real
  analysis of drivers of success or failure
• Minimal organisational learning
• Few or no individual consequences

• Common failures
• Weak financial modeling
• Minimal market testing
• Multiple internal sign-offs

Service
Introduction
Service
Devel
-
Lifecycle
concept
market
strategy
opment
management
business case
launch

• Common failures
• Poor management of sponsorship
• No issues or risk management
• No benefits tracking
• Complexity in aligning different business units
  functions
• Low accountability
• To cumbersome process that kills creativity

• Common failures
• Not communicated into products area
• Real strategy is different from official strategy
• Linkage between strategic intent and
  prioritisations not clear

• Common failures
• Portfolio not reflecting strategy
• Killed projects reappearing
• Too many projects allowed through gate
• Low quality ideas

• Common failures
• Too many projects planned simultaneously, many
  never finished
• High cost

• Common failures
• Bottlenecks identified late
• Unable to service demand

Program and project management
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Great user experiences drives adoption of new
services

• Ease of Use
• Availability of attractive handsets
• Spending Control
• Ubitiquous Coverage
• Easy to understand Service bundles

A Great user experience
Increased adoption of new services
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Summary from concept to cash

• The devil is in the details eye the hype and
  seek the truth
• The winners are the players that make it easy for
  the consumer
• Global adoption happens very quickly in telecoms
  once economies of scale come to play it happens
  now in music and entertainment
• Always revisit the three dimensions of Successful
  service creation technology integration,
  customer needs, market channel access
• Kaizen start simple and evolve

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