2004-11-08 Introducing mobile music services - Henning Reich - Siemens

8/14/2019 2004-11-08 Introducing mobile music services - Henning Reich - Siemens

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Mobile Monday

Italy www.mobilemonday.it


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Introducing Mobile Music ServicesHenning Reich, Product Management Mobile Phones

Rome, October 2004


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Siemens COM; Subject to Change without Notice Page 3

What is Music? Emotion! Brand!


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Key: close cooperation between operator and supplier


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Key: close cooperation between operator and supplier


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What is mobile Music ?

Who are the mobile music customers ?

How do I bring content to the customer ?

Why mobile music is so important for operators

What are thoughts of the Music industry on mobile musicThe problem from customers perspective: DRM

Device roadmap to mass market

Usability

Mobility does not have room for wires


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MUSIC customers:What role does music play in their lives?


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MUSIC customers : the two segments to start


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MUSIC customers: Key findings


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Usability



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music download whats behindEnd-to-end value chain

MasterContent

ContentProvider

ContentPreparation

ContentDatabase

E-ShopHosting

RoyaltyClearing

DRMEncrypt.

ServiceProvider

Ready-to-sell

Content

Reporting

Requesting,Reporting

Music2You

Interfacing

Delivering

BillingInterfaceDevices


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Usability



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Some thoughts on: The operator and ARPU

Main music target group consuming mobile music is 14 30

Target group will mainly use MP 3 and existing music base

Potential for spontaneous buying additional mobile music approx 5 / month (e.g. limited by available free income)

-> limited potential to increase DATA ARPU in the next years, BUT

VERY important target group

VERY important marketing message to the attractive target group

The music story is mainly about marketing (voice ARPU and less data)

If an operator will miss to address this target group, he will loose thefight for new customers and VOICE and SMS revenue


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Increase Operator brand value

Music has very positive recognition in almost allcultures

Music is easy to understand

Music is ideal for promotion in TV and Radio andeven print

The Vodafone Britney Spear exclusive campaign ? The Vodafone Britney Spears tour ?

The new Britney Spears album exclusive on theVodafone download portal?

Music has the best potential in theconsumer market to increases the brandvalue of a mobile operatorMusic then finally increases market share and

revenue, if there exists a competetive and credibleconnection between campaign and reality


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Usability



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Some thoughts on: The content provider and ARPU

June 2004, Balthasar Schramm, Sony MusicPresident:

I see this (SX1 mobile music product launch*) as theevolution of the walkman and it has huge potential

in the future.

In 3 years I expect 25% of the music market to beinternet downloads and 2/3 of that will be mobile

internet.


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Some thoughts on: DRM

Digital rights management

or

Digital restriction management ?

Why should a customer accept DRM (if there is a choice)?

DVD is copy protected and well accepted BUT -> there existed no betteralternative video format before

MP 3 is very well established, AAC and AAC+ will have a hard time. DRMmight even be a show stopper from consumer perspective.

Owning and Sharing were 2 out of the 4 most important motivations /success factors mentioned by the interviewed customer base !


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Usability



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the path to enter the mobile real music mass market

SX 1Early

adaptors

U s e r s

time

Mainmarket

UMTS

EDGE

GPRSInitiator

OTA

download

SL 45Early

adaptors

Initiator

Mobile Music

MP 3

Majority &mass market


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Phone roadmap for the future

M a r k e t

p e n e

t r a

t i o n

R e a

l M u s i c

time

MP3 player MMC slot32 MByte = 30 minutes

GPRS class 10 MP3 player

AAC+ support Progressive download DRM Stereo headset MMC slot 256MB = 16 hours music

EDGE/ UMTS Mass market phones MP3 player AAC+/ AAC++ player Progressive download DRM Stereo headset

next

SL45i

SX1

*


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What are thoughts of the Music industry on mobile music

The problem from customers perspective: DRM


Usability



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Music: Convenient usage is key

Fast and Easy

10 sec.

10 sec.

10 sec.

Select song

Click to buy

Convenience:

Progressive download is a must !


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What are thoughts of the Music industry on mobile music

The problem from customers perspective: DRM


Usability



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MOBILITY DOESNT HAVE ROOM FOR WIRES

Phone-Car interaction , convenient usage

Playback music stored on phone over car stereo

Control the phone with car controls


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MOBILITY DOESNT HAVE ROOM FOR WIRES

Home Mobile interaction , convenient usage

Internet

Music Download Service

DSL, WLAN

GPRS, UMTS

Playback musicstored on phone overhome stereo

Remote Control homestereo with phone

Synch music betweenphone and homeserver


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[email protected]

2000 - Global Product Manager High End Phones

SX 1 AAC+ Hifi Stereo Over the air download (Vodafone and o2)

SL 55 Fashion slider concept

SL45 GSM + MP3 (first GSM MP3 phone)

SL 45i Java 2 Micro Edition (first GSM Java phone)1998-1999 Director for Siemens SmartCard OS and Cryptography

1992 first global public demo of GSM CSD data with Siemens S3 on Cebit

1992-1997 Development and marketing of mobile computer systems, Nixdorf

1988-1991 university and degree in computer science

1990s development of Software for Apple 2 and MacIntosh

Married, two children 7 and 9 years old

Hobby: skiing, cycling, mountain climbing

2004-11-08 Introducing mobile music services - Henning Reich - Siemens

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