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Mobile Content Platforms: Mobile 2.0 and Advertising Join the Party Product Image

Mobile Content Platforms: Mobile 2.0 and Advertising Join the Party

  • Published: April 2008
  • 132 Pages
  • MultiMedia Intelligence

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Operators are seeing data revenue exceed 30% of total service revenue as the ring tone market shifts from a primary to a partial revenue stream in a premium content mix that includes ringback tones, games, full track downloads and mobile video. Mobile gaming emerged first in Asia, expanded to Europe and is now growing dramatically in North America. Mobile video holds among the most significant potential.

The ecosystem of companies helping to enable content distribution continues to expand as well. The operator has a tremendous amount of power as they own the subscriber. The content companies have a lot of power as they own the content that individuals want. The other platform providers and the digital commerce service providers tend to get stuck in the middle, “bullied” at times. The revenue growth of the market participants reflects this reality.

“Mobile Content Platforms: Mobile 2.0 and Advertising Join the Party” covers the software platforms used to deliver & monetize content to mobile handsets. The research contains five-year worldwide forecasts of global market revenue for video, music, gaming and images. The forecast for the emerging READ MORE >

Executive Summary
Introduction
Wireless Industry Trends
Transition to Data Services and Content
Multiple Levels of Network Convergence
The Mobile Internet Transforms the Competitive Ecosystem
Voice Is Becoming a Data Application through UMA and VoIP
Mobile Advertising & More Data Applications
Subscriber Growth Shifts to Developing Countries and Regions
Handsets with at Least Basic Multimedia
What Is A Mobile Content Enablement Platform?
What Is the Deck?
Platform Features
Partner Management
Partner Integration
Hidden Costs
Partner Settlement
Merchandizing
Cataloguing and Storing
Promotions, Couponing and Offers
Hidden Costs
Storefronts
Discovery
Delivery and Fulfillment
Financial Processing
Purchase Processing
Hidden Costs—1st Big Bucket of Revenue Leakage
Payment Processing
Hidden Costs—2nd Big Bucket of Revenue Leakage
Refunds
Reporting and Data Evaluation
Customer Service
Hidden Costs—3rd Big Bucket of Revenue Leakage
Data Analytics
Market Trends
Movement to the Mass Market
Product Proliferation
Partner Proliferation
Storefront Proliferation
Targeted Marketing Campaigns and Promotions
Implications to the Platform
Separating the Cream from the Milk
Multiple Funding Models
Implications to Platform Providers
Mobile 2.0
Implications to the Platform
Multi-Platform Executions, not Executions on Multiple Platforms
Wal-Mart Gets It Right
Implications to the Platform Provider
Mobile Content Outside of the Box
Clipcasting
Sideloading via Secure Memory
Premium Content Market
Advertising Revenue in Premium Content
Mobile TV Advertising Market Revenue
In-Network Premium Mobile Advertising Revenue
In-Network Premium Mobile Advertising Revenue by Market Participant
On-Deck vs Off-Deck Mobile Content Markets
On-Deck Mobile Content Market
Off-Deck Mobile Content Market
Content Provider Share of the Mobile Content Market
Operator Share of the Mobile Content Market
Digital Commerce Services Share of the Mobile Content Market
Platform Company Share of the Mobile Content Market

While messaging continues to dominate data revenue and shows continued steady growth, mobile premium content is expanding its growth worldwide. By “premium content”, MMI means discretionary entertainment content such as music, games and video that a subscriber purchases, subscribes or rents.

Developed markets, such as Japan and Korea, have seen dramatic growth in premium content. Operators are seeing data revenue exceed 30% of total service revenue as the ringtone market shifts from a primary to a partial revenue stream in a premium content mix that includes full track downloads and mobile video. Mobile gaming emerged first in Asia, expanded to Europe and is now growing in North America. Mobile video holds the most significant potential, with current worldwide “on-network” mobile video subscribers exceeding 9 million, according to MultiMedia Intelligence. Mobile video though is still at its nascent stages. Broadcast mobile TV is still only selectively deployed on a country by country basis, capturing about 5 million users as of the end of 2006.

A service delivery ecosystem enables content distribution, manages billing, and demonstrates its own trajectory of continued growth. Four primary entities support the content provisioning process and provide value-added content to handsets: operators (also referred to as carriers); content creation companies; digital commerce service providers; and content enablement platform companies.

Conceptually, the process is straightforward. Content enablement platform companies provide the systems and infrastructure to monetize premium content from the content originators over a mobile operator’s network. Digital commerce service providers process the financial transactions and requisite reporting. Fundamentally, a mobile content enablement platform is the software and systems necessary to sell and deliver content to a handset. The platform has a handful of fundamental features: Partner management, Merchandising, Delivery and Fulfillment and Reporting and Data Evaluation.

Several significant market trends have arisen over the last year in the area of content platforms. The significant trends include:
- Movement to target the mass market
- Support of multiple funding models
- Enablement of mobile 2.0 features
- Support of multi-platform execution (as opposed to executions on multiple platforms)

Four fundamental types of content are delivered to handsets: music, images, video and games. Music breaks into several sub-categories including ringtones (further divided into both polyphonic and realtones), ringback tones, full track downloads and streaming music. MMI also counts adult content, which combines and spans all four “media” major categories. Adult content has some unique features that drive us to forecast it as a separate category.

The imbedded advertising model for mobile video is in place and will serve to dramatically increase viewership. Clearly, consumers have accepted advertising in their subscription video streams. Other forms of premium content such as games and music have not have not seen significant advertising inserts as of yet. This will happen but MMI does not see it is as a significant or measurable market within our forecast parameter.

In our estimation the size of the on-deck market will exceed the off-deck market. This reflects MultiMedia Intelligence’s categorization of mobile TV as “on-deck.”

Operators have tremendous power because they “own” the subscriber base. Clearly, content companies have considerable power as they own the content that individuals want. The other two entities tend to be somewhat stuck in the middle, “bullied” at times. The revenue of the market participants reflects this dynamic.

3Guppies 65
- Acotel Group
- Action Engine
- AdMob
- Adobe
- Ads-Click
- Airborne Entertainment
- Alcatel-Lucent
- AmberFin
- Amdocs-Qpass
- Amdocs-OpenMarket
- Amobee
- Apertio
- Apple
- Arena Mobile
- Bango
- Blockbuster
- BlueBlast
- BSG Clearing Solutions
- Buongiorno
- Buzzwire
- CDC Mobile
- Cherry Media
- CinemaElectric
- Cisco
- Comverse
- Crisp Wireless
- DadaMobile
- decentral.tv
- Divvycast
- Enough Software
- Enpocket, now called Nokia Interactive
- Entriq
- Ericsson IPX
- Facebook
- Foundation 9
- FunMobility
- FusionOne
- g8wave
- Glu Mobile
- Google
- GoTV Networks
- Greystripe
- Groove Mobile
- Handango
- Hands-On Mobile
- IGA Worldwide
- iLoop Mobile
- InfoSpace
- Jamba! (Jamster)
- July Systems
- JumpTap
- Kinemo
- Loopt
- Loudeye
- Medio
- Melodeo
- Metacafe
- Microsoft
- mig33
- Millennial Media
- Mobile Complete
- MobiTV
- Mobival
- Mobix
- MobVision
- Modiv Media (formerly MobileLime and Cuesol)
- Monstermob
- MoPhap
- Motricity
- Movaya
- Mozilla
- mPortal
- mPortico
- m-Qube
- mSpot
- Musiwave
- MyNuMo
- mywaves
- Myxer
- NapsterMobile
- NDS
- Nellymoser
- Netbiscuits/Dynetic
- Netsize
- Nexage
- NMS
- Nokia
- Nokia Siemens Networks
- Openwave Systems
- Ortiva Wireless
- PacketVideo
- PayforIt
- Phonebox Entertainment
- Photobucket
- PixSense
- PlayPhone
- Qloud
- Qualcomm BREW
- Qualcomm MediaFLO (Clipcasting)
- Quantum
- QuickPlay
- R4 Mobile
- RealNetworks
- Rocket Mobile
- ShoZu
- Silverback Media
- SinglePoint
- Snell & Wilcox
- Starcut
- Sybase 365
- Telcordia
- ThePlatform
- Thin Multimedia
- Third Screen Media
- THQ Wireless
- Thumbplay
- Tilefile
- Tira Wireless
- TOM Online
- Trolltech
- UIEvolution
- uVuMobile (SmartVideo)
- Valista
- Vantrix
- VeriSign
- Vivendi Games Mobile
- Volantis
- Vollee
- Wapple
- WiderThan
- Wireless Information Network (WIN)
- Wmode
- Yahoo!
- YouTube
- ZED
- Zumobi, (Formerly ZenZui)

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