MaxxoMedia Digital Media and Entertainment Trends

The definition of the Mobile Internet Device (MID) may be somewhat nebulous, given the category overlaps multiple products, ranging from some Ultra-Mobile PCs to certain Portable Media Players. However, there’s nothing nebulous about the MID growth opportunity, with global unit shipments expected to expand by nearly a factor of eight from 2007 to 2012. MID is projected to grow eightfold to spur to 416 million units by 2012, at a compound annual growth rate (CAGR) of 50.6% from 53.8 million in 2007, according to iSuppli. While the exact definition of Mobile Internet Device is difficult to nail down, it’s characterizes as devices that have integrated connectivity for Wireless Local Area Network (WLANs), Wireless Metropolitan Area Networks (WMANs) or 3G-or-higher Worldwide Wide Area Networks (WWANs) and has a maximum size display of 8-inches in diagonal dimension, an instant-on function, an always-connectable capability and a full day’s worth of battery life. MID includes devices like UMPCs, netbooks, smart phones, portable navigation devices, e-book readers, portable media/MP3 players and handheld gaming devices, says the research.

From Kenradio.com
Over 54% of US mobile phone users said their mobile phone usage had increased by more than 25% over the last two years, and one in five respondents said it had increased by more than 50%. A significant catalyst behind this growth is smart phone adoption, with 62% of respondents indicating they either own or will own such a device in the next 12 months, according to a new survey conducted by Azuki Systems. Despite increased adoption, almost 80% of those surveyed said they wished it were easier to access information from the Internet on their mobile phones, and an equal percentage stated they wished it were easier to access rich media on their mobile phones. The majority of those surveyed pointed to a number of current obstacles to enjoying rich media on mobile. For example, 69% felt that the long time to download and/or play media ranked among their top three barriers, and 66% felt that difficulties finding and navigating to relevant content was a top three inhibitor. A number of shortcomings were also identified for iPhone and BlackBerry users. Almost 80% of those surveyed said they wished it were easier to access information from the Internet on their mobile phones, and an equal percentage stated they wished it were easier to access rich media on their mobile phones.

Mobile Users ? Where Does the Time Go?
Regardless of which mobile device they are using, U.S. mobile phone users are spending a significant amount of time on their phones. This highlights the fact that core consumer services have expanded beyond voice to include messaging and data services, which also serve as a launch pad for broader Web and more advanced content services. Survey findings showed:

The US mobile internet now has a large and diverse enough user base to support wide-scale mobile-marketing efforts, and mobile web users are 60% more likely than data users to be open to mobile advertising, according to a report from Nielsen Mobile.

Among the report?s other key findings:

* The US, UK and Italy are leaders in mobile internet penetration, with 15.6% of mobile subscribers in the US, 12.9% of subscribers in the UK and 11.9% in Italy actively using the mobile internet; New Zealand (1.6%) and Indonesia (1%) have the lowest mobile internet penetration rates:

SCOTTSDALE, Ariz., September 16, 2008–Market research and consultancy, MultiMedia Intelligence, announces the release of its free whitepaper on the US wireless teen market, characterizing the market for mobile phone services by US 12-17 year old teens. The whitepaper is free to download at http://www.MultiMediaIntelligence.com

The teen market is an especially appealing market for two reasons. First, it is a primary source of new subscribers for carriers. Less than 40% of pre-teens have mobile service. By age 17, 84% of teens have wireless services, with the penetration skewing higher for females. Second, teens teach older demographic how to use their handsets.

by Steve Smith , Thursday, July 31, 2008

MOBILE MYTHOLOGY SUGGESTS THAT ALL Europe and Asia are far, far ahead of the U.S. in their mobile technology and media evolution. International case studies hold up examples of sophisticated marketing programs that seem years ahead of familiar mobile campaigns here. Like most mythologies, this one has a grain of truth that we tend to extrapolate into broad maxims and conventional wisdom.

But as increasingly border-less brands start deploying programs internationally, mobile mythology could lead to costly misfires. Even a cursory look at M:Metrics monthly benchmarks of international mobile data uptake shows some vast difference among geographic neighbors. In April, 10.2% of UK mobile customers played a downloaded game, compared to 4.4% in France. Likewise, the level of tolerance and/or exposure to the dominant form of mobile marketing, SMS messaging, is wildly varied. In Spain, 72.5% of users received an SMS ad of some kind in April, while only 28.5% of Germans did.

Although mobile content is something consumers can buy and download from virtually anywhere, Chinese start-up Duo Guo is banking on a different approach by selling such content through specialized kiosks in brick-and-mortar retail stores.

Based in Shanghai, Duo Guo—a subsidiary of D Mobile Inc.—has developed partnerships with China’s largest retailers and leading global media companies to bring games, ringtones, software and other mobile services to China’s 500 million mobile phone users in a retail setting. Each Duo Guo kiosk is staffed by a salesperson, who can help consumers as they browse for content. Once customers make their selections and pay, the content gets beamed to their phone via Bluetooth. In addition to its starting line-up of ringtones, wallpapers and games, Duo Guo recently began offering exclusive mobile content from emerging Chinese artists through its “artist of the month” program, and has launched into ticket sales as well. Wal-Mart, Best Buy and Tesco are among the stores that have signed up to host Duo Guo kiosks in China, while the company also operates its own standalone stores in subway stops and Shanghai’s busy Zhong Shan Park area. Content at Duo Guo kiosks is updated every Friday to encourage frequent browsing.

Cell Phones Still Hot; More Mobile Advertising Proposed

Although a new Harris Interactive study reveals that over one-third of consumers say the dire economy will not affect their spending habits,  the 60 percent of consumers who will limit their discretionary spending will curtail going out to restaurants (74 percent) and limit their purchase of electronics (71 percent). 41 percent of consumers, however, have no plans to stop or cut-back on the purchase of cell phones, making it an increasingly viable advertising channel.

To many, it seems the use of mobile phones has become an indispensable part of their lives. People are actually severing ties to land lines with increasing frequency. According to a new study from the National Center for Health Statistics, notes the report, 16 percent of U.S. homes are using wireless phones exclusively

From Kenradio.com

A growing number of mobile phone subscribers worldwide are taking online social networking to the streets. The U.K. leads Europe in mobile social networking on a percentage basis — with the U.S. boasting comparable numbers. In the U.K., approximately 810,000 mobile subscribers, or 1.7% of all mobile subscribers in the country, visited social networking websites on their mobile phones in the first quarter of 2008. That reach percentage was twice as high as it was in other major European markets?though similar to the U.S., where 1.6% of all mobile subscribers (4.1 million in all) accessed social networks via their phones in December 2007.

By Mark Levy, CEO MaxxoMedia

According to the International Telecommunications Union, worldwide mobile telephone subscriptions now exceed 3.3 billion — equivalent to half the global population. Cell phones now surpass the number of computers and televisions combined.

In the coming years, it is predicted by some that the cell phone will become the device of choice for watching video. There are a number of current challenges to this vision that to date have stifled the market. Much like the early mobile web browsing experience, user expectations are low. Users complain of poor image quality, complexity, slow downloading times and lack of selection of content.

Content providers, distributors and carriers see a huge pot of gold in mobile video. Before they can realize it, though, new tools need to be created that help people find the content they want, format it correctly for each device and deliver a quality experience through the subscribers’ network connection.

Last week, I explained some of the complexities within the mobile content retailing market. This week we’ll hear senior execs from Thumbplay, 9Squared/Zed and Flycell talk about what it’s like to play in this space.

Are Traasdahl is the CEO of Thumbplay, the largest direct-to-consumer player in the U.S. An independent company with 100 employees based in New York, Thumbplay is projected to own about 18% of the U.S. off-portal market. The company recently raised $18 million in venture capital to expand operations.

Brian Casazza is CEO of 9Squared, a part of Zed, the leading mobile content retailer in the world with over $500 million in gross revenue annually. Zed has 40 million consumers around the globe who buy on a monthly basis. 9Squared announced earlier this month that they would formally combine operations with Zed.

Guillermo Cengotitabengoa is the VP Marketing for Flycell, a wholly-owned subsidiary of Italian mobile-messaging pioneer Acotel Group. Launched in November of 2004, Flycell provides a broad range of premium mobile content products, including ringtones, games, mobile greeting cards and wallpapers that empower mobile users to customize their phones and make them an extension of their personalities.

I asked each of them about the state of the market, how the regulations were affecting their businesses and what they could do to build brand and grow their businesses.

By Mark Levy, CEO MaxxoMedia

Throughout the past few years, the mobile content industry has enjoyed strong market growth. Primarily fueled by the sale of master ringtones directly through the cell phone carriers, the market looked unstoppable.

Recent studies show, however, that the ringtone market appears to be peaking and is projected to decline in the coming years. So far, no other mobile content application has proven it is ready to take the ringtone’s place. Mobile video has yet to take off and full-track music downloads seem to be dead on arrival. Some project Ring Back Tones may be the one to break through although it’s growth has been slow to date.

As recently as last year, it was believed that the direct-to-consumer market, also known as “off portal” mobile content sales, would more than make up for any flattening sales at the carriers.

Foreign-based companies, which had been successful in their native markets, began entering the U.S. market. They launched multi-million-dollar TV and print advertising campaigns to quickly build brand and drive awareness. Many considered the ads misleading. They offered “free” ringtones without explaining clearly that the consumer would be signed up to a pricey subscription.