James Rosewell 51 degrees Monetising music on mobile - Music 4.5 The Music In-App Economy

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The document discusses various methods for monetizing music on mobile devices. It notes that ringtones were once popular but alternatives like apps have replaced them. Apps have a convenient payment model through app stores that take a 70/30 revenue share. Emerging payment methods beyond credit cards and apps are also discussed, like near field communication and direct carrier billing. The document concludes that opportunities exist for digital content owners through new payment platforms and disintermediating credit cards.

Business

MONETISING MUSIC ON
MOBILE
@jwrosewell / @51degreesmobi

About 51Degrees

1,500,000
Web sites

650,000
deployments

99.9%
detection
accuracy

2.5bn Unique
visits tracked
monthly

150,047
device
combinations

5,291,472
detections per
second

@jwrosewell / @51degreesmobi

10% Average Growth per Month

2.5bn unique global web visits tracked
in January 2014

@jwrosewell / @51degreesmobi

Note: I’ll ignore the advertising
business model

@jwrosewell / @51degreesmobi

Whatever happened to ringtones?

The Crazy Frog

@jwrosewell / @51degreesmobi

Caller tunes?

Still popular in India

@jwrosewell / @51degreesmobi

1. Mobiles primary use shifted
from voice

@jwrosewell / @51degreesmobi

2. Easier alternatives available

@jwrosewell / @51degreesmobi

Apps vs Web Sites

@jwrosewell / @51degreesmobi

Apps have an extremely
convenient payment model

@jwrosewell / @51degreesmobi

70/30 Revenue Share

@jwrosewell / @51degreesmobi

Little competition… at the moment

@jwrosewell / @51degreesmobi

Beyond the App

@jwrosewell / @51degreesmobi

Credit Cards

@jwrosewell / @51degreesmobi

Near Field Communication

@jwrosewell / @51degreesmobi

…and many more

@jwrosewell / @51degreesmobi

GSMA OneAPI

@jwrosewell / @51degreesmobi

PingIT from Barclays

@jwrosewell / @51degreesmobi

Zapp from Vocalink

@jwrosewell / @51degreesmobi

1. Direct to (Network Operator) bill
2. Direct to/from bank account

@jwrosewell / @51degreesmobi

Disintermediation
removing the card

@jwrosewell / @51degreesmobi

Opportunities for Digital Content
• Everyone can be a merchant (or record label)
• Increased relevance of social media and web
• Big app stores loss relevance

• Margins can improve for content owners
• Opportunities today…
– Weve, Zapp, GSMA and others all looking for partners which
means marketing support for you!
– Niche web sites / app stores
@jwrosewell / @51degreesmobi

Today, people spend more time using mobile apps than they do sitting on a computer surfing the web. In fact, overall time spent in apps has increased by 21% over the last year! In this presentation, we'll show you how to apply your online marketing skills to the app-driven future. Access the webinar recording here: http://info.localytics.com/free-webinar-mobile-metrics-101-everything-web-marketers-need-to-know-about-app-analytics

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