Panel: Industry Update on New Mobile Devices and Portable ...


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  • Proven Track Record
  • Panel: Industry Update on New Mobile Devices and Portable ...

    1. 1. Connected and Mobile 2006 Elizabeth Mackey VP/GM eReader/Motricity IDPF 2006
    2. 2. Motricity Corporate Overview Leading Customer Base World leader in Mobile Marketplace Management …delivering the right content, to the right device, at the right time – EVERY TIME <ul><li>120 MM+ consumer footprint </li></ul><ul><li>600,000+ digital media files </li></ul><ul><li>10,000+ content providers in our Network </li></ul><ul><li>Global Presence: North Carolina (HQ), London, Beijing, Munich, San Diego </li></ul><ul><li>300+ Employees </li></ul>What We Do Large Footprint Growing Team Strong Investors External Validation
    3. 3. Leading the Mobile Market <ul><li>Enabling more than 120 million subscribers worldwide </li></ul><ul><li>Delivered over 200 million paid downloads in 2005 </li></ul><ul><li>Powered over $500 million in content revenues </li></ul><ul><li>Over 10,000 content providers </li></ul><ul><li>Over 600,000 applications and digital media </li></ul><ul><li>Over 200 handsets models have been tested and certified by Motricity </li></ul>
    4. 4. Case Study: Raising the Bar at Cingular Cingular 1Q’05 Financial Release Data ARPU Cingular introduces Motricity’s Fuel Platform – quarterly Data ARPU increases from $1.10 to $3.70 Powering more than $1 million per day in mobile content revenues for the World’s 3rd Largest GSM carrier with 51 million subscribers
    5. 5. <ul><li>Longtime leader in ebooks </li></ul><ul><li>0ver 17,000 titles </li></ul><ul><li>Supports </li></ul><ul><ul><li>PC’s/laptops – Windows, Macs </li></ul></ul><ul><ul><li>PDA’s – Palm, Windows Mobile, Pocket PC </li></ul></ul><ul><ul><li>Phones – Symbian Series 60 </li></ul></ul><ul><ul><li>and UIQ </li></ul></ul><ul><li>Own ecommerce site – </li></ul>
    6. 6. Annual Renewal of Devices is Strong <ul><li>Mobile Phone Shipments reached 120 mill in 2005 and roughly remain at this level in subsequent years </li></ul>million
    7. 7. Leaps in Smartphone User Growth <ul><li>Smartphone users increase from 2% of wireless subscribers in 2005 to over 25% of base by 2010 </li></ul>million
    8. 8. User Base Grows Incrementally <ul><li>On the user side, s ubscriber penetration will reach 70% by 2006 and 75% by 2010 </li></ul>million
    9. 9. Access to a Diverse Mix of Users Age
    10. 10. We Live in a Mobile Universe… <ul><li>14 million users download ringtones, 70% are under 35 </li></ul><ul><li>10 million users download games, 50% are under 35 </li></ul><ul><li>Downloading is EASY </li></ul><ul><li>Add photos of users </li></ul>
    11. 11. 2006 Premium Content Sales Mix The North American premium content market is projected to finish 2006 at $2.8 billion. Information Services & Applications Personalization & Games Entertainment Source: Strategy Analytics, 2005
    12. 12. North American Premium Content Market Personalization Entertainment Information Services Applications In 2010, North America will grow to a $9.1 billion dollar market. 35% CAGR from 2006 to 2010 $2.8 Billion Source: Strategy Analytics, 2005
    13. 13. Portability creates demand <ul><li>iPods – music anywhere, anytime </li></ul><ul><li>Video iPods – video anywhere, anytime </li></ul><ul><li>Play stations – gaming anywhere, anytime </li></ul><ul><li>DVR – not quite, but they watch more TV </li></ul><ul><li>Web – reading anywhere, anytime </li></ul>And this TREND started in PRINT!
    14. 14. More time spent with mobile media PER DAY
    15. 15. If You’re Not on Their Screen, You’re Not in Their World <ul><li>The one item we never leave home without </li></ul><ul><li>Communication </li></ul><ul><li>Information </li></ul><ul><li>Entertainment </li></ul><ul><li>Work applications </li></ul><ul><li>Productivity </li></ul><ul><li>Camera </li></ul><ul><ul><li>In the US, in 2005 31 million users downloaded </li></ul></ul><ul><ul><li>575 million games, graphics and ringtones </li></ul></ul><ul><ul><li>totaling $1.3 billion in revenue </li></ul></ul>
    16. 16. Approaching the Final Frontier of Portable Convergence Music Video Browsing Games Books … + + Multiple types of Infotainment Multiple types of Communication Calls Text messaging Picture messaging Email … Multiple types of mCommerce A la carte Subscription Premium SMS … <ul><ul><li>All in ONE place </li></ul></ul>And improvements in screen size, # pixels and color depth for video …. this all is GOOD for BOOKS too.
    17. 17. Some Challenges We Still Face <ul><li>Multiple operating systems </li></ul><ul><ul><li>Palm </li></ul></ul><ul><ul><li>Windows </li></ul></ul><ul><ul><li>Symbian </li></ul></ul><ul><ul><li>SONY </li></ul></ul><ul><ul><li>ETI </li></ul></ul><ul><ul><li>RIM </li></ul></ul><ul><ul><li>iPod </li></ul></ul><ul><ul><li>PC’s </li></ul></ul><ul><ul><li>Mac’s </li></ul></ul>
    18. 18. And More Challenges <ul><li>And multiple devices from multiple manufacturers </li></ul><ul><li>Treo’s </li></ul><ul><li>Blackberries </li></ul><ul><li>New entrants – SONY, IREX, Hitachi </li></ul>
    19. 19. The Killer device <ul><li>It’s what we all want </li></ul><ul><li>We aren’t there yet </li></ul><ul><li>The $100 computer – one laptop per child </li></ul><ul><ul><li>In production March 2007, with ebook screen </li></ul></ul><ul><ul><li>7 million units, 7 countries WW </li></ul></ul>
    20. 20. <ul><li>Apple’s iPod </li></ul><ul><li>For perspective </li></ul><ul><ul><li>13.5 million iPods sold vs. 120 million phones (US, 2005) </li></ul></ul><ul><li>50 years of technology in portable music </li></ul><ul><li>Consume music differently </li></ul><ul><ul><ul><li>By song, Over and over </li></ul></ul></ul><ul><ul><ul><li>How many times have you heard your favorite song, how many times have you read your favorite book </li></ul></ul></ul><ul><ul><ul><li>Set trends for music and videos, but proprietary </li></ul></ul></ul>The Killer Device
    21. 21. What we can do – Enhance the functionality <ul><li>OTA delivery </li></ul><ul><li>MP3 support </li></ul><ul><li>Search inside the book </li></ul><ul><li>Multiple language support </li></ul><ul><li>Downloadable catalogs </li></ul><ul><li>Support standards </li></ul>
    22. 22. What Publishers can do <ul><li>More titles </li></ul><ul><li>Good “Filters” are critical* </li></ul><ul><li>“Info Snacks” - shorter and smaller** </li></ul><ul><li>Niche markets and the long tail* </li></ul><ul><li>New models – subscriptions </li></ul>* Chris Anderson ** John Kilcullen
    23. 23. Marketing opportunities <ul><li>Critical to reaching the mobile user: </li></ul><ul><ul><li>Community programs & </li></ul></ul><ul><ul><li>social networking </li></ul></ul><ul><ul><li>Loyalty programs </li></ul></ul><ul><ul><li>Subscriptions </li></ul></ul><ul><ul><ul><li>iAmplify: audio and video </li></ul></ul></ul><ul><ul><ul><li>direct to the consumer </li></ul></ul></ul><ul><ul><ul><li>@ $10 month </li></ul></ul></ul>
    24. 24. More Marketing Opportunities <ul><li>Bundles </li></ul><ul><ul><li>EVERY mobile device should come with a free book </li></ul></ul><ul><ul><li>Title bundles </li></ul></ul>
    25. 25. Even More Marketing Opportunities <ul><li>Push technology – direct delivery to the device </li></ul><ul><ul><li>Harlequin on the GO </li></ul></ul><ul><ul><ul><li>Chapter a day </li></ul></ul></ul><ul><ul><ul><li>Subscription based/ </li></ul></ul></ul><ul><ul><ul><li>$2.49 a month </li></ul></ul></ul><ul><ul><li>SMS alerts </li></ul></ul>
    26. 26. Not to be forgotten <ul><li>Libraries – remember when libraries were dying? Now I can’t find a parking space </li></ul><ul><ul><li>Opportunity to try before you buy </li></ul></ul><ul><ul><li>Need to work out better model among publishers, libraries and software and hardware vendors </li></ul></ul>
    27. 27. Online Marketing Snapshot <ul><li>eCommerce has grown 25% annually in prior 2 years, but at $143 billion less than 2.5% of total US retail sales – HUGE Growth potential </li></ul><ul><li>Best Sources for Website visitors </li></ul><ul><ul><li>Paid Search </li></ul></ul><ul><ul><li>Search Engine Optimization </li></ul></ul><ul><ul><ul><li>online advertising </li></ul></ul></ul>
    28. 28. eBooks Today… <ul><li>72% of ebook readers shop for books at least 3x a month </li></ul><ul><li>92% have never been able to borrow an ebook from a library </li></ul><ul><li>99% say GOOD SELECTION is critical, but only half of them find the selection above average </li></ul><ul><li>Pricing and DRM – remains a challenge </li></ul>
    29. 29. But keep in mind… <ul><li>Online shopping is directed activity </li></ul><ul><li>Online shoppers price compare, but they don’t “window shop” </li></ul><ul><li>Use online stores as a search tool rather than shopping as entertainment </li></ul><ul><li>20-30% of sales online are web exclusive products NOT available in stores </li></ul>* Marketing Sherpa ecommerce benchmark guide 2006
    30. 30. eBooks Tomorrow… <ul><li>There is tremendous upside potential for eBooks </li></ul><ul><li>The market and devices are ready </li></ul><ul><li>Together we can take it to the next level </li></ul>35% CAGR from 2006 to 2010 $2.8 Billion
    31. 31. Connected and Mobile 2006 Elizabeth Mackey VP/GM eReader/Motricity IDPF 2006