This morning UKMR attended an excellent roundtable on mobile content, hosted by mobile data specialists End2End. The speakers were: Patrick Parodi, Chief Sales and Marketing officer, Amobee (chair for the session, pictured here); Adrian Letts, ex-head of Vodafone Content Global and now Director, BlinkBox; Matt Hatton, Senior Analyst, Yankee Group; Tom McLennan, Category Manager for Music, Vodafone; Niklas Hjelm Hansen, product manager End2End.
Broadly speaking, there was general agreement that mobile content is at an embryonic stage, "It's rather like the early days of the internet, when Mosaic had just been released," said Patrick Parodi. But naturally there were a range of views about what operators and content providers should do. In essence these ranged from 'stick to the knitting', to 'standardise on one OS', to 'get to know the customer better'.
Matt Hatton outlined Yankee's overall view on how the content market was shaping up: "messaging is clearly the biggest element, and as we progress the 'infotainment' element will grow. Ringtones and graphics and games will continue to take the lion's share, but graphics will decline, ringtones is being subverted by people making their own, while games still looks strong. TV and video will be the big drivers. The business case for music still needs to be proven. We are sceptical about over-the-air downloads."
But what most animated the panel was the hot issues of the day: YouTube on the horizon; 3's announcement of flat-rate broadband; the role of digital rights; and the potential for advertising on mobiles.
Adrian Letts wondered why operators couldn't concentrate less on content and more on offering their billing services to stitch the whole thing together.
Tom McLennan said that 3's flat-rate mobile broadband announcement was nothing more than a PR stunt, but admitted he hadn't had a chance to have a close look at it yet. He hinted that Vodafone had a response in the pipeline, saying: "We have a broadband proposition coming onto the marketplace, I actually don't know what it is."
Matt Hatton said he felt there would be a gradual shift by operators towards a flat-rate model, if 3's service proves attractive.
The DRM debate got incredibly technical, perhaps indicative of the confusion it presents for consumers. One journalist asked for it to be re-explained, despite the fact that he had been covering it for years. Personally I'm still miffed that I can't even put my own music on my iPod (yes, I know its possible, but my iPod software just won't let me).
Despite the general air of the discussion being anti-Microsoft with resptect to any Mobile OS dominating, Adrian Letts said he thought it was a price worth paying: "Why do I have to have so many differnt system experiences, lets just have one."
UKMR slotted in a question about YouTube talking with O2. What kind of a deal did the panel think would be on the cards? Matt Hatton said he though the deal wouldn't be exclusive, while Adrian Letts asked "what's the business model? YouTube had only made $15,000 before Google snapped it up." When asked if Vodafone had held talks with YouTube, McLennan said "probably".
Verdict: The mobile industry does not yet have a compelling enough offering for consumers or for the advertising industry, when it comes to mobile content. Most consumers don't want to pay for something they can get free or easily on the internet; while most advertisers are not interested in such a tiny demographic. But hey, there are plenty of people desperate to make it work, so, slowly but surely, operators look likely to deliver the lower cost offerings that will make content to mobiles fly; while also hitting upon more appropriate premium content must-have offerings. Or did they already do that? (See 'Shock Report' story below).
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