Dont Blink

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Title: Dont Blink

1
Dont Blink!
2
Distinctive content

There is a massive amount of content on offer.
How do we make ours stand out?
Branded doesnt necessarily do better than non
branded so there is a chance to compete with
something completely new.
What can you offer that is different to anyone
else?
You need a Unique Selling Point.
The buyers arent interested in doing a deal for
a one-off or small selection because of the cost
and time involved in contracting. To begin, you
need a large selection.
You also need variety. Theres no place in this
market for the 1 trick pony!

3
Content opportunities

4
The players

The content creator thats you and the other
million or so players out there!
The aggregators - theyre the people who gather
the content together and manage the telco
customer relations.
The alligators theyre the small time wanna
bes who dont have the resources to play
seriously. Avoid these guys because theyll just
take a chunk of money for nothing.
The formatters theyre the people who will
format your content for the 300 different
handsets out there. Dont get involved in this
side of the business because it is the formatters
responsibility to guarantee to the telcos that
the content will work on the different handsets
without any problems. Even a single mistake will
cost the formatter thousands of dollars!
The telcos theyre the ones who own the mobile
networks.
The customers the ones who pay for all this!

5
(1) Example of a mobile supply chain
Content Aggregator
Formatter
Content creator
Carrier
E-store
Customers
Customers
6
The deal

Dont expect to get paid anything up front. If
you do, it will be peanuts and you wont get any
other share of the pie.
Never do an exclusive world deal. Try to make
your deal as open as possible so that you can
pull out if its not working. If it is working,
the Aggregator wont abandon you but if its not
working, youre screwed if youve signed an
exclusive.
Dont expect to do a deal with the Telcos.
Theyre not interested in dealing with small time
players so unless youre Warner Brothers, forget
it!
Be prepared to have to produce specific content
for each aggregator. They all have different
markets and therefore, differing requirements.
You need deep pockets. It takes a LONG time to
get paid. The worst territory in the world for
payment is Australia. Expect to wait a MINIMUM of
12 18 months after the sales for your money.

7
Show me the money

Australia not here. The market is just too
small.
UK yes, its here. A good sized market that is
eager for new content.
Continental Europe yes its here too and the
market is massive.
Middle East no money here. Theyve got the
money but theyre way too conservative.
US Canada no money here yet surprisingly.
This is because the Americans shot themselves in
the mobile foot a few years back and now theyre
the most backward market in the world.
South America no money here. Theyre struggling
to eat so dont expect them to buy your
entertainment.
SE Asia theres money here but they have more
than enough content makers of their own and they
like their own stuff better!
China, Korea same as SE Asia
Africa no money here either. Even worse off
than South America!

8
The truth of mobile.

Fact or fiction? Theres an insatiable demand for
mobile content worldwide.
Fact but.. Its a massively over serviced market.
Fact or fiction? Everyone wants 3G content.
Fiction. The carriers want 3G content to try and
encourage people to start using 3G services. 3G
is gradually gaining traction but 4G is not far
off now either.
Fact or fiction? Were gonna make a killing!
Right?!

9
Making a mobile killing part 1

Lets pick a test market, say the UK.
It has a large population.
They speak a vaguely similar language to us and
have a similar sensibility when it comes to story
telling and humour.
Theyre early adopters of mobile technology.
Theyre also enthusiastic buyers of mobile
content.
The UK is the highest paying mobile market so how
can we go wrong?!

10
Making a mobile killing part 2

Theres around 60 million people in the UK.
20 million of them are Vodafone UK customers.
For arguments sake, lets say 40 of Vodafones
customers are in the content market this week.
Thats 8 million customers just this week!
Of those, probably only 10 will actually get
around to browsing for content. Thats 800,000,
still pretty good!
But Vodafone has at least 40 pages of content! On
average that means on 20,000 people might make it
to the page youre on.
But your stuff is just part of whats on offer on
that page and youll be lucky to get 10 of those
people previewing your content. Down to 2,000
people.
Probably about 5 will actually make a purchase.
Thats 100 sales of your content this week. Off
to a good start!

11
Making a mobile killing part 3

So youve made 100 sales in your first week!
Unfortunately, theres a bit of a content sale
going on and the price is just 50p per unit this
month (Think of about AUD1.00).
Of course Vodafone takes 50 so that leaves
0.50.
And the Formatter takes 33 of the balance for
all their hard work. That leaves 0.33.
The Aggregator takes 50 of whats left. Thats
0.165.
Your share is 0.165 ( x 100 sales).
Total weekly sales 16.50!
Are you excited yet? (Perhaps youd better not
order that new Aston Martin just yet.)

12
Making a mobile killing part 4 - yes, theres
even more!

Of course theres a few other costs that we cant
forget either.
Theres Withholding Tax from the country where
the sales were made. That can be up to 50.
Your bank will charge you for the foreign
exchange plus their usual account fees.
Your ISP and telco will charge you for all the
uploading and downloading of content.
And many Aggregators dont want you to invoice
them unless your minimum bill reaches a certain
level. Otherwise its too much paperwork and
trouble!
Oh yes, and dont forget to pay your tax!

13
Making a mobile killing part 5 - yes, theres
still even more!

Other challenges in the mobile arena
Broadcasters are flooding the market with cheap
content. Some are even giving it away to promote
their shows because theyre losing serious market
share to all this online stuff.
The Aggregators and Telcos and doing discounting
and bundling to attract customers but this is
further reducing revenue streams.
And its like real estate.. Position, position,
position! If youre not on the best pages..
youre not in the business
And then theres the Alligators and Aggregators.
How do you work out which is which?

14
The future..

Theres no doubt that the market is growing and
the volume of sales is increasing.
But prices are decreasing as Aggregators and
Telcos try to keep their customers and win new
ones.
Broadcasters and distributors will be
increasingly dumping masses of content onto the
market, possibly even for free. This is a
desperate bid to save their flailing broadcast
businesses from being eaten by IPTV and other
forms of online entertainment.
To try to remain attractive to the market, the
Aggregators and Telcos will continue to move
towards more extreme mobile entertainment like
augmented reality. Thats making it tougher
because this type of entertainment requires more
development and therefore higher production cost.
So as for the mobile business.. DONT BLINK or
youll miss it!