Make Mobile Content Work

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Make Mobile Content Work

• A Tale of Many Parties,
• Partners and Paradigms
• with a cast of 160 characters, enhanced by
  pictures and images!

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Mobile Content

• Handset Personalisation
• Ringtones, logos, wallpaper, java games phone
  furniture
• Information and Entertainment
• news, weather, share prices, sports updates
  horoscopes, jokes, trivia, pick-up lines
  general broadcast alerts (info and entertainment)
• what did this house sell for last? What is the
  price of AMP shares? tailored information
  services (premium)
• Reminder services (partners birthday, pick up
  car from service etc) personal alerts

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Where is the content value?
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Who makes money now?
Result 0.471.20 less SMS cost (10c), content
(30c) and licence (33c)
Result 1.89 (1.90 less SMS cost (.5c)
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Sales and Delivery
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Limited Stats on the Market

• 4B SMS messages are sent from 13.8M handsets (289
  per user)
• 7M people each send on average 44 messages every
  month.
• Almost all had heard of MMS, with 50 expressing
  interest in using it in the future.
• 50 will upgrade their handset within the next
  two years.
• 32 Australian mobile users have internet enabled
  handsets. However most are not MMS enabled.
• 97 had never used photo messaging, (World avg.
  95)

Telco consultants AT Kearney, in conjunction with
the University of Cambridge, surveyed 5,600
mobile users in 15 countries, including 374
Australian users in April, about their use of
SMS, photo messaging and plans to upgrade their
handsets.
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The Content Chain
Content Partners/ Providers
ABC, f2, Yahoo, Reuters, AstroZone, C7, EMI, etc
Content Aggregators
InfoSpace, Legion, HWW, i-Touch
Reuters, Legion, AAP, SportsData, HWW etc
Technical Provisioners
Mobile Operators
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Content Partners/Providers

• Primary content creators or owners of license
  rights to content
• May include content aggregators (with license to
  sell content)
• Brands add value (ABC, Fairfax, Yahoo, Sony, ASX,
  Dow Jones etc)
• Low percentage revenue deals may hinder content
  creation
• Some fixed costs (may require revenue minimums)

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Value Proposition - Owners

• Brand names add value and credibility
• Brand names allow for joint promotional
  opportunities
• Brands and exclusivity a thorny issue
• License costs for branded content higher (from
  10c for unbranded to 10,000 for branded)
• Branded entertainment (games, images, music) much
  higher royalties up to 80 of revenue
• Consumer comfort/interest high

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Content Aggregators

• Manage multiple content partners/ providers (and
  may create themselves)
• Services include sourcing, reporting, formatting
  for multiple streams, quality control and cross
  referencing
• May include delivery or management of
  subscriptions (technical provision)
• Seek new channels to market for content partners
• Rev or fixed rate (slice of CP deal)

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Value Proposition - Aggregators

• Can add value by combining content to create new
  content
• Multiple outlets for single content input (buy
  once, sell many)
• Good quality control is critical (and rewarding)
• Requires management both up and down the value
  chain
• Revenue usually as percentage of content or cut
  of monthly minimums

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Technical Provisioners

• Manage subscriptions to services
• Can create content often content aggregators as
  well as delivery
• Can be mobile operators (Telstra PocketNews,
  VLive!)
• Validate delivery and sometimes provide charging,
  credit control, opt-out list management, timing,
  etc
• Usually fee per item delivered (from 3c - 90c),
  subscriber etc

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Value Proposition - Delivery
Content Provider

• Often bundled with the cost of content
• Receive a clip on message costs (higher MMS,
  lower on SMS)
• Increasingly requires good subscriber management
  (esp. ppt-out lists, time of delivery control,
  expiry of delayed messages etc
• Customer service key

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Mobile Operators

• Access to content (SMS pull, WAP, MMS, Browse,
  Voice delivery)
• Providers of stable content transaction
  environment
• Providers of payment mechanism (through premium
  rate SMS/MMS, GPRS etc)
• Welcoming environment for the content chain to
  use and get value from

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Partnerships

• Knowledge of formatting for medium use of
  images, sound, text
• Know when gr8 will gr8 or be OK
• Single content provision can go to multiple
  sources in different formats

• Add value through merging content to create new
  content

• Streamline payment (can be irregular from
  carriers)

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Partnerships

• Legion and the ABC
• Legion buys ABC content and provides this to
  Vodafone Live!
• Legion formats content to correct specifications,
  manages quality
• ABC buys Legion services to deliver ABC on Your
  Phone info alerts
• Legion builds intelligent engines to parse ABC
  content (NSW State Elections, Live Budget
  commentary etc)
• Joint development into interactive TV (FCM)

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ABC On Your Phone
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Revenue Driver - ABC

• Use of Premium Rate SMS for subscribed content
  (micro payment)
• Sale of content to other parties (notably
  carriers, Vlive! Telstra, Orange etc) incl. some
  via content aggregator
• Free sample content as trial
• Program linked (CNNNN, Kath Kim)
• Used mobile for real-time TV tie in (Fat Cow
  Motel)
• Entertainment content (RTL) also provided as
  revenue generation

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Partnerships

• Legion and HWW
• Legion buys HWW content and provides this to
  Vodafone Live! (entertainment)
• (HWW also provides their own content to Vodafone
  Live! TV and film)
• HWW partners with Legion to approach portals
  (9MSN, Yahoo etc) to manage subscribers and
  content
• Legion provides a gateway access connection for
  HWW to push messages out
• Legion brings content request to HWW to consider
  (and HWW bring message needs)

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Ringtones and Logos

• Mono ringtones and simple images readily
  available at low cost
• Polyphonic sounds more costly but currently 50
  of RT revenue
• Both above licensed through APRA/AMCOS (avg 11
  of rev)
• RealMusic next requires license from record
  companies
• Revenue varies but from 50 to 80 of income

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The Consumer Experience

• Spontaneous (one-off) premium rate SMS, premium
  rate IVR, SMS pull
• Ideally uses some form of payment linked directly
  to the content supplied
• Planned (limited duration) web or email
  subscription, SMS or IVR
• May use per-pay for content (1900, Credit Card)
  or prSMS linked to content
• On-going Subscription (open ended) web, email
  or IVR
• Provision to cancel suggests that payment linked
  to content supply preferable. Block purchase
  difficult to monitor and refund

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The Supplier Experience

• Australian market is small (consumers) and
  content is expensive. Revenue shares (30 or so)
  dont generate profit
• Carriers are caught in this as well, and are
  reluctant to experiment
• Most new media content is provided through closed
  systems which protect carriers more than provide
  opportunities
• Partnership between carriers and
  aggregators/provisioners are critical (esp for
  quality control and management)
• More open access required

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Vodafone Live! walled garden

• Requirement for minimum phone standard (colour,
  MMS, Java, poly) ensured good customer experience
  of Live!
• Single platform for content providers to deliver
  to regardless of content format
• Rendering to phone based on handset capability
  (in theory), including alerts
• New content vetted, promoted and guaranteed by
  Vodafone (quality)
• Global purchases of content provided foundation
  (games, ringtones, sports)
• Local supply gave regional flavour
• VERY difficult for 3rd parties to gain portal
  access
• Low revenue share rates to content providers
  (revenue minimums)

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I-Mode - bit pipe

• Predominantly third party provided content
• Not vetted or approved by I-mode
• Generous revenue shares (85) on content
• Specific i-menus point consumers to i-mode
  preferred sites (most useful content) (can affect
  revenue share)
• Carrier promotion of content has dramatic affect
  on consumer take-up (46 of usage on 5 of sites
  selected through the i-menu)
• Encourages content providers, portal creators and
  developers and importantly rewards them
• Also encourages promotion of services by the
  content creators in addition to that from carrier

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The Ideal World
Environment providing migration for customers
through walled garden (Vodafone Live!), bit-pipe
(I-mode) to open access.
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Value Adding

• You send your bookie a bet on the 315 at
  Flemington (Race 6, Flemington, Horse 4, 100 Win
  Only) from your (pre-existing) account
• Your bet (and odds) are confirmed via SMS
• As the horses line up your phone rings.
• You answer and listen to the race being called
  live while you are on line
• You are sent a picture of the finish and
  confirmation of your stunning victory
• Money paid back into your account

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Value Adding

• You stand outside a house with a For Sale sign on
  it. Interested?
• You send an SMS with the address of the house to
  a premium rate number
• (Fuzzy logic used to handle spelling and second
  question to handle variations)
• You get back
• a) the date the house was last sold
• b) the price it sold for
• c) whether there has been a DA since then
• Subsequently, once the houses sells, you are sent
  the auction results automatically

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Value Adding

• Using your phone, you access your preferred
  mobile portal
• You are interested in Rugby World Cup
• You want alerts? Tries? Half and full time
  results? Standings only? Next matches?
• Would you like a ringtone with that? Maybe a
  country anthem? A team logo?
• How about accessing the m-commerce area to see if
  there are tickets to the game available?
• Want to pay via your phone bill? Why not!

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Mobile Content

• Instantaneous
• Spontaneous
• Data device for text, images etc
• NOT a TV screen in your pocket!
• Ubiquitous
• Valuable
• Personal
• Upon request
• Unlimited

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Mobile content works nowand can work even
better

• Jennifer Wilson
• Custom Solutions
• Legion