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Digital Music & Content Services
Strategic Review, Options, Experience
Concepts
Starting Point: SE PlayNow Portal

» Existing flash portal provides limited
  scalability and functionality

 
 Aim is to engage and excite users,
»
    plus explain PlayNow proposition
Primary objectives:

 
 Accommodate the service
»
    roadmap (services and
    international rollouts)

 
 Increase awareness, usage, sales
»

 
 Increase appeal to the target
»
    audience (primarily ʻglobal youthʼ)

 
 Improve user experience:
»
    differentiation, emotional
    engagement, brand expression
Activities To Date

» Market scan of digital content & services landscape
» Competitor assessment
» Discovery: Customer insights
» Business goals & roadmap review
» Culture & technology and shifts
» Ecosystem mapping
» Options generation for customer experience & business model
» Visualize experience concepts
Market Scan
Summary of market / industry research
Digital Music Offerings
Digital Music Outlook
“International digital music revenues grew by an estimated 25% in 2008 to US $3.7
billion, accounting for 20% of music sales, up from 15% in 2007
Digital growth rates vary sharply between the US and the rest of the world. Digital
accounted for 39% of recorded music sales in the US in the first half of 2008 –
more than four times higher than in Germany (9%).
The proportion of US consumersʼ disposable income spent on digital music is more
than five times higher than in Europe. Online, US broadband users spent an
average of US $12.5 on music compared to US $7.8 in the UK and just US $0.6 in
Spain (2007).” IFPI Digital Music Report 2009



  If Europe follows US, exect rapid migration to digital music services.
  iTunes lead is less entrenched in Europe, providing a greater opportunity
  to take market share.
Digital Music Models

                                                                commerce                         subscription
        Revenue Sharing                       Digital Music Stores
                                                                      individual labels   mobile radio    internet radio

                        social music


                                                                                                           social music
                                                                                          file hosting



                                                                                                          satellite radio


                                                                             Transaction
                                                               Gray market
                 mobile radio
                                                                                          streaming
streaming
                                  Legal P2P




               Advertising
social music
                                                      Loss-leader                                Ilegal
Mobile Subscriber Growth Forecast
“The China-India region will continue to be the main subscriber growth engine, with
a Cumulative Annual Growth Rate (CAGR) of 12% up to 2013” Ovum
“80 million Chinese young people to buy their first phone in the next 3 years ”
Mobileyouth.org


“Asia Pacific, Latin America and Africa will contribute 78% of subscriber growth. 8%
only from North America and Europe” Informa Telecoms & Media
“...by transforming their businesses into smart pipe service providers, the operators
can significantly increase their income from mobile content, from a share of $23bn
in 2008 to around $52bn by 2013”. Telecoms.com



   Advanced services & smartphones are the growth drivers in Western markets.
   Handset and subscription sales drive growth in BRIC & developing markets.
Mobile Data Forecast
“After years of false starts 2008 has finally seen data services take off. Data
(including messaging) revenue is forecast to grow 79% globally over the coming
five years.
Developed markets will be key to this growth, accounting for 53% of data revenues
in 2013. We do not believe that many operators will be successful in providing
content.
“(Internet domain businesses) may take content revenues from the operators, but
access will more than compensate. They also offer operators new service
opportunities through partnerships.” Ovum



 Consumers will increasingly want access to ‘the real internet’ via their
 handsets. Handsets / services that support this offer users value.
 Operators will want to partner with services that increase subscriber data
 revenue and enhance loyalty.
Competitor Analysis
Notable Findings: Customer Perception
Common Criteria


»Global and per market sales and profits
»Market shares, revenues and volumes
»Organizational structure
»Distribution system
»Advertising strategy (and spend)
»Customer profiles & attitudes
»Customer satisfaction and retention levels
»New product strategies and advertising effectiveness?
»Future investment strategy
»Contractual terms with key suppliers
»Strategic partnerships
iTunes Customer Experience

“iTunes sucks. There, we said it. Appleʼs once very handy
jukebox and music library manager has morphed into an
unusable piece of crap thatʼs not even an app anymore,
itʼs just a kiosk for the iTunes Store.

So, if iTunes is so flawed, why do we use it? The
answer is simple — the iPhone. There are plenty of
apps out there that can handle syncing music to your iPod,
but if you want your iPhone/iPod updates, youʼre
stuck with iTunes.”
               The Top Ten Reasons iTunes Sucks
               By Scott Gilbertson November 5, 2008
               http://www.webmonkey.com/blog/The_Top_Ten_Reasons_iTunes_Sucks
Nokia Services Strategy
“...designed to appeal to users who are used to free music access thanks to
illegal file-sharing services.


However, analysts say that sales of Comes With Music handsets are failing to
meet Nokia's targets. Nokia is refusing to comment on sales figures, or the
uptake of the Comes With Music service, stating that the firm is in a "silent period".
But evidence that retailers are having to slash prices in order to sell the
handsets is mounting.


Pescatore suggests that Nokia's focus on the Comes With Music programme is
part of a plan to drive traffic to its online portal, Ovi, and establish itself as a
major player in the world of internet services.


"At whatever cost, Nokia will do its best to ensure that the product will
succeed, because the long-term goal is to drive people towards Ovi. There's
no better way for them to do that than through a service such as music that has
mass-market appeal."
Circular Entertainment

"From our research we predict that up to a quarter of the
entertainment being consumed in five years will be
what we call 'Circular'. The trends we are seeing show
us that people will have a genuine desire not only to
create and share their own content, but also to remix it,
mash it up and pass it on within their peer groups - a
form of collaborative social media," said Mark Selby,
Vice President, Multimedia, Nokia.
Circular Entertainment

Selby continues, "We think it will work something like this;
someone shares video footage they shot on their mobile
device from a night out with a friend, that friend takes that
footage and adds an MP3 file - the soundtrack of the
evening - then passes it to another friend. That friend edits
the footage by adding some photographs and passes it on
to another friend and so on. The content keeps circulating
between friends, who may or may not be geographically
close, and becomes part of the group's entertainment."
Comes With Music


» Application implementation is poor
» Transferring music to the handset is quick and easy
» Comes With Music concept works, execution is shaky

» Comes With Music Vs. Playnow Plus
   » MusicStation works from the handset.
   » Downloads are quick and the catalogue is very deep.
   » However, tracks canʼt just be played
   » Must be added to a playlist first
Comes With Music: Business Model
Customer Insights
Digital Music
Consumer Voices

We conducted a survey of active digital content buyers and mobile
device users, asking them about digital music experiences:




                    If you could create a
                   digital music service or
                   experience, what would
                         you create?
Summary of Responses
» This generation wants to build their own digital music experiences
» Their personal connections to their peers are a major part of their
  music experience
» Active music makers expect to be able to publish, promote, and
  showcase their own music
» Music should be portable: across devices, platforms, formats,
  accounts, borders
» Library management and service convenience are the most important
  UX elements. Discovery is important but secondary
» Scope of catalog is critical in judgements about service quality
» Comfort level with music as a social object varies
» iTunes user experience is widely perceived as having many
  weaknesses
If it were me, I would
    not reinvent the wheel, but
      give people something
   theyʼre already familiar with
     – but packaged nicer.

                                            “I hate having to
                                     relearn apps when theyʼre
Users value usability and a        upgraded (even simple stuff like
ʻfamiliarʼ user experience          Facebookʼs redesign), if I want
                                   to acquire music, Iʼd like to do
                                      it via familiar method.”

   Something like iTunes
    but cleaner and better
         organized.”
“Take clean and simple
   "new"-factor of Hype Machine, the
   community recommendations and
algorithms from Last.fm, the commercial
 selling part from iTunes, make it DRM
 free, make deals with all major record
    companies like Sony BMG and
                 such                               Drop ALL and i
                                                 mean ALL the support
                                                  for older phones and
                                                 target it towards new
Users want the ʻbest of every                          phones
serviceʼ, to work together. But
are happy for it to only work on
the latest devices
                             Make it work
                          across all platforms
Insights: Experience Value Drivers
The value of a digital content experience is determined by peopleʼs
perceptions of overall convenience, and contextual fit.
Specific factors contribute to judgements on convenience and contextual fit.


Convenience                             Context
» acquisition cost                      » identity & expression
  » price vs. effort                    » social
» portability                           » location
  » format                              » activity
  » devices                             » relevance
  » compatibility                         » content, timeliness
  » DRM

   Contextual factors are more important to creating valuable experiences.
Business Goals & Roadmap
Digital Music
Service Offering Evolution



                          Digital Video

                                                       PIM
        Digital Music




Games

                                                             Mobile Search
              PlayNow Plus
                                    PlayNow Personal

                PlayNow Unlimited

                               PlayNow Discover


                                               Localized Content
Arena Vision Overview


Traffic Driving Activities




                                                Customer Experience and Value
                                                Proposition
                                                * Circular entertainment Hub
                                                * CRM Hub
                                                * Digital Retail
                                                * Social Discovery (immersion)
                                                * Mobile Entertainment
Culture and Technology Shifts
Understanding Fundamental Changes
In Media
Culture & Technology Shifts: Summary
Digital = Social
  » Social interactions are most valued aspect of digital offerings
Co-Creation
  » Customer value lies in creating content, not consuming
Digital Natives
  » Young people expect all experiences to have a digital aspect
  » People have multiple digital identities, managed independently
Takeaway
  » Content and services are portable
  » Ecosystems of integrated and complementary services
Convergence
 » Mobile phone becoming primary digital device
 » Experiences span channels / devices / formats
Digital = Social

All experiences have a ʻsocial layerʼ
  » Social elements include identity, presence, history, interaction, group dynamics

Social interactions are the source of experience value
  » Conversation, exchange, community, social memory, reputation

New environments are primarily social
  » Social media, virtual worlds, MSO, life streams, microblogs, IM

Networks become primary organizing structures
  » Interactions and experiences shaped by linked & overlapping networks of influencers
  » Exchanges (information, services, goods, reputation) occur via marketplaces




                                                                      MediaCatalyst. | 7
Digital = Social

Implications & Challenges
» Brand is shaped by interactions in the social layer
» Experience value is determined by individuals
» Perceived experience value is influenced by networks
» Communities define contexts & opportunities for marketing
  » Each context is different: forums, social networks, virtual worlds, microblogs




                                                                                     MediaCatalyst | 8
Digital = Social

Opportunities for digital marketers
» Engage conversations in new social environments
  » Create identity & voice for products & brands

  » Respect social context when advertising / marketing

» Ensure experiences include or connect to the social layer
  » Integrate & cooperate with social ecosystem
  » Facilitate 2-way conversations




                                                          MediaCatalyst | 9
Ecosystem Mapping
Finding Opportunities In Product &
Experience Ecosystems
Apple iTunes Product Ecosystem
iTunes and iPod Ecosystem
Nokia Experience Ecosystem
Nokia Ecosystem: Strengths

» Nokia was ignoring the ecosystem of its devices, however,
  this is changing .
» Nokia Home Media Solutions and Philips Streamium
  Wireless Audio will cooperate to deliver a music
  experience at home controlled via mobile phone, where
  the digital content flies between mobile and home devices.
» The “N79 Active” was released with Bluetooth heart rate
  straps from Polar and a new version of Nokia Sports
  Tracker.
» Nokia and XBOX are discussing concepts that use the
  same Xbox Live and PlayStation Online assets for Nokia
  mobile phones
Nokia Ecosystem: Weaknesses

» Browser and platform dependent web services* that turn
  50-75% of users away
» Weak application store with limited content selection
» Incompatible Music Store with a poorly built-in media
  management and DRM-protected WMA files
» Lack of service awareness
  » (also, many Nokia users donʼt know the capability of their phones)

» Lack of innovation
  » Nokia hasnʼt opened a new segment on its own for years.
» Lack of user adoption and end-device support for OVI
Strategic Options
Portfolio of Structured Options
Options: Digital Content & Services Experience

•   Service & Loyalty Hub

•   Digital Content Retail

•   Social Content Discovery

•   Mobile Entertainment

•   Circular Entertainment
•   D
                   ig
                        ita
                             lC




Convenience
              •   Se                 on
                       rv                te
                            ic               nt
                                e                 R
                                    &                 et
                                                           ai
                                        Lo
                                          ya                  l
                                                  lty
                                                         H
                                                             ub


              •   So
                       ci
              •            al
                  M              C
                      ob            on
                         ile             te
              •   C              En
                                           nt
                                                  D
                      irc               te            is
                                                         co
                                                                       Options vs. Experience Value Drivers




                         ul               rta              ve
                              ar                in
                                    En               m            ry
                                          trt     en
                                             m       t
Context




                                               nt
Digital Content Experience Elements

1. Service
2. Mobile
3. Retail
4. Social
5. Discovery
6. Entertainment
7. Memories
8. Identity
Options Comparison




Service   Mobile   Retail   Discovery   Identity   Memories   Social   Entertainment




                            Experience Elements
Option Profiles


Customer Experience
Examples                   Suggested
Value propositions
Business models




Ecosystem integrations        TBD
Traffic opportunities
Cost
Feasibility
Circular Entertainment Hub




Service   Mobile    Retail   Discovery   Identity   Memories   Social   Entertainment




                             Experience Elements
Circular Entertainment Hub
Hub offering tools and services to help share and create
common experiences with friends and family; shared
memories and individual identity are based on social       Business

objects (songs, photos, videos) and, co-created digital
content. People will express themselves via common          Value
objects and experiences.
                                                           Customer

Examples: Friendfeed, Facebook activity stream, iMovie &
iPhoto albums


Customer Value Propositions
» Digital identity and self-expression
» Re-inforce social connections and create common
  experiences
» Social awareness
» “Stay connected to your life and your friends”
Circular Entertainment Hub
Business Value Propositions
» Value add component enhances product ecosystem
                                                             Business
» Engages next generation of global customers
» Source of customer social network & activity data           Value

» Extends customer-lifecycle offerings
                                                             Customer


Revenue models
  » Retail transactions: digital content purchase, premium
    services purchase
  » Loss leader (loyalty)
  » Advertising
  » Revenue sharing
Experience Concepts
Visualizing Options
Circular Entertainment Hub

‣   Creating social attachment to content
‣   Entertainment with an emotional connection
Experience Concept: Circular Entertainment
‣   Creating social attachment to content
Experience Concept: Circular Entertainment
Suggested Next Steps

1. Prioritize strategic options
2. Refine experience concepts
3. Define evaluation criteria
4. Release planning
5. Rapid prototype evaluation of option(s)

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Digital Music Services (Strategic Review & Options)

  • 1. Digital Music & Content Services Strategic Review, Options, Experience Concepts
  • 2. Starting Point: SE PlayNow Portal » Existing flash portal provides limited scalability and functionality Aim is to engage and excite users, » plus explain PlayNow proposition Primary objectives: Accommodate the service » roadmap (services and international rollouts) Increase awareness, usage, sales » Increase appeal to the target » audience (primarily ʻglobal youthʼ) Improve user experience: » differentiation, emotional engagement, brand expression
  • 3. Activities To Date » Market scan of digital content & services landscape » Competitor assessment » Discovery: Customer insights » Business goals & roadmap review » Culture & technology and shifts » Ecosystem mapping » Options generation for customer experience & business model » Visualize experience concepts
  • 4. Market Scan Summary of market / industry research
  • 6. Digital Music Outlook “International digital music revenues grew by an estimated 25% in 2008 to US $3.7 billion, accounting for 20% of music sales, up from 15% in 2007 Digital growth rates vary sharply between the US and the rest of the world. Digital accounted for 39% of recorded music sales in the US in the first half of 2008 – more than four times higher than in Germany (9%). The proportion of US consumersʼ disposable income spent on digital music is more than five times higher than in Europe. Online, US broadband users spent an average of US $12.5 on music compared to US $7.8 in the UK and just US $0.6 in Spain (2007).” IFPI Digital Music Report 2009 If Europe follows US, exect rapid migration to digital music services. iTunes lead is less entrenched in Europe, providing a greater opportunity to take market share.
  • 7. Digital Music Models commerce subscription Revenue Sharing Digital Music Stores individual labels mobile radio internet radio social music social music file hosting satellite radio Transaction Gray market mobile radio streaming streaming Legal P2P Advertising social music Loss-leader Ilegal
  • 8. Mobile Subscriber Growth Forecast “The China-India region will continue to be the main subscriber growth engine, with a Cumulative Annual Growth Rate (CAGR) of 12% up to 2013” Ovum “80 million Chinese young people to buy their first phone in the next 3 years ” Mobileyouth.org “Asia Pacific, Latin America and Africa will contribute 78% of subscriber growth. 8% only from North America and Europe” Informa Telecoms & Media “...by transforming their businesses into smart pipe service providers, the operators can significantly increase their income from mobile content, from a share of $23bn in 2008 to around $52bn by 2013”. Telecoms.com Advanced services & smartphones are the growth drivers in Western markets. Handset and subscription sales drive growth in BRIC & developing markets.
  • 9. Mobile Data Forecast “After years of false starts 2008 has finally seen data services take off. Data (including messaging) revenue is forecast to grow 79% globally over the coming five years. Developed markets will be key to this growth, accounting for 53% of data revenues in 2013. We do not believe that many operators will be successful in providing content. “(Internet domain businesses) may take content revenues from the operators, but access will more than compensate. They also offer operators new service opportunities through partnerships.” Ovum Consumers will increasingly want access to ‘the real internet’ via their handsets. Handsets / services that support this offer users value. Operators will want to partner with services that increase subscriber data revenue and enhance loyalty.
  • 11. Common Criteria »Global and per market sales and profits »Market shares, revenues and volumes »Organizational structure »Distribution system »Advertising strategy (and spend) »Customer profiles & attitudes »Customer satisfaction and retention levels »New product strategies and advertising effectiveness? »Future investment strategy »Contractual terms with key suppliers »Strategic partnerships
  • 12. iTunes Customer Experience “iTunes sucks. There, we said it. Appleʼs once very handy jukebox and music library manager has morphed into an unusable piece of crap thatʼs not even an app anymore, itʼs just a kiosk for the iTunes Store. So, if iTunes is so flawed, why do we use it? The answer is simple — the iPhone. There are plenty of apps out there that can handle syncing music to your iPod, but if you want your iPhone/iPod updates, youʼre stuck with iTunes.” The Top Ten Reasons iTunes Sucks By Scott Gilbertson November 5, 2008 http://www.webmonkey.com/blog/The_Top_Ten_Reasons_iTunes_Sucks
  • 13. Nokia Services Strategy “...designed to appeal to users who are used to free music access thanks to illegal file-sharing services. However, analysts say that sales of Comes With Music handsets are failing to meet Nokia's targets. Nokia is refusing to comment on sales figures, or the uptake of the Comes With Music service, stating that the firm is in a "silent period". But evidence that retailers are having to slash prices in order to sell the handsets is mounting. Pescatore suggests that Nokia's focus on the Comes With Music programme is part of a plan to drive traffic to its online portal, Ovi, and establish itself as a major player in the world of internet services. "At whatever cost, Nokia will do its best to ensure that the product will succeed, because the long-term goal is to drive people towards Ovi. There's no better way for them to do that than through a service such as music that has mass-market appeal."
  • 14. Circular Entertainment "From our research we predict that up to a quarter of the entertainment being consumed in five years will be what we call 'Circular'. The trends we are seeing show us that people will have a genuine desire not only to create and share their own content, but also to remix it, mash it up and pass it on within their peer groups - a form of collaborative social media," said Mark Selby, Vice President, Multimedia, Nokia.
  • 15. Circular Entertainment Selby continues, "We think it will work something like this; someone shares video footage they shot on their mobile device from a night out with a friend, that friend takes that footage and adds an MP3 file - the soundtrack of the evening - then passes it to another friend. That friend edits the footage by adding some photographs and passes it on to another friend and so on. The content keeps circulating between friends, who may or may not be geographically close, and becomes part of the group's entertainment."
  • 16. Comes With Music » Application implementation is poor » Transferring music to the handset is quick and easy » Comes With Music concept works, execution is shaky » Comes With Music Vs. Playnow Plus » MusicStation works from the handset. » Downloads are quick and the catalogue is very deep. » However, tracks canʼt just be played » Must be added to a playlist first
  • 17. Comes With Music: Business Model
  • 19. Consumer Voices We conducted a survey of active digital content buyers and mobile device users, asking them about digital music experiences: If you could create a digital music service or experience, what would you create?
  • 20. Summary of Responses » This generation wants to build their own digital music experiences » Their personal connections to their peers are a major part of their music experience » Active music makers expect to be able to publish, promote, and showcase their own music » Music should be portable: across devices, platforms, formats, accounts, borders » Library management and service convenience are the most important UX elements. Discovery is important but secondary » Scope of catalog is critical in judgements about service quality » Comfort level with music as a social object varies » iTunes user experience is widely perceived as having many weaknesses
  • 21. If it were me, I would not reinvent the wheel, but give people something theyʼre already familiar with – but packaged nicer. “I hate having to relearn apps when theyʼre Users value usability and a upgraded (even simple stuff like ʻfamiliarʼ user experience Facebookʼs redesign), if I want to acquire music, Iʼd like to do it via familiar method.” Something like iTunes but cleaner and better organized.”
  • 22. “Take clean and simple "new"-factor of Hype Machine, the community recommendations and algorithms from Last.fm, the commercial selling part from iTunes, make it DRM free, make deals with all major record companies like Sony BMG and such Drop ALL and i mean ALL the support for older phones and target it towards new Users want the ʻbest of every phones serviceʼ, to work together. But are happy for it to only work on the latest devices Make it work across all platforms
  • 23. Insights: Experience Value Drivers The value of a digital content experience is determined by peopleʼs perceptions of overall convenience, and contextual fit. Specific factors contribute to judgements on convenience and contextual fit. Convenience Context » acquisition cost » identity & expression » price vs. effort » social » portability » location » format » activity » devices » relevance » compatibility » content, timeliness » DRM Contextual factors are more important to creating valuable experiences.
  • 24. Business Goals & Roadmap Digital Music
  • 25. Service Offering Evolution Digital Video PIM Digital Music Games Mobile Search PlayNow Plus PlayNow Personal PlayNow Unlimited PlayNow Discover Localized Content
  • 26. Arena Vision Overview Traffic Driving Activities Customer Experience and Value Proposition * Circular entertainment Hub * CRM Hub * Digital Retail * Social Discovery (immersion) * Mobile Entertainment
  • 27. Culture and Technology Shifts Understanding Fundamental Changes In Media
  • 28. Culture & Technology Shifts: Summary Digital = Social » Social interactions are most valued aspect of digital offerings Co-Creation » Customer value lies in creating content, not consuming Digital Natives » Young people expect all experiences to have a digital aspect » People have multiple digital identities, managed independently Takeaway » Content and services are portable » Ecosystems of integrated and complementary services Convergence » Mobile phone becoming primary digital device » Experiences span channels / devices / formats
  • 29. Digital = Social All experiences have a ʻsocial layerʼ » Social elements include identity, presence, history, interaction, group dynamics Social interactions are the source of experience value » Conversation, exchange, community, social memory, reputation New environments are primarily social » Social media, virtual worlds, MSO, life streams, microblogs, IM Networks become primary organizing structures » Interactions and experiences shaped by linked & overlapping networks of influencers » Exchanges (information, services, goods, reputation) occur via marketplaces MediaCatalyst. | 7
  • 30. Digital = Social Implications & Challenges » Brand is shaped by interactions in the social layer » Experience value is determined by individuals » Perceived experience value is influenced by networks » Communities define contexts & opportunities for marketing » Each context is different: forums, social networks, virtual worlds, microblogs MediaCatalyst | 8
  • 31. Digital = Social Opportunities for digital marketers » Engage conversations in new social environments » Create identity & voice for products & brands » Respect social context when advertising / marketing » Ensure experiences include or connect to the social layer » Integrate & cooperate with social ecosystem » Facilitate 2-way conversations MediaCatalyst | 9
  • 32. Ecosystem Mapping Finding Opportunities In Product & Experience Ecosystems
  • 33. Apple iTunes Product Ecosystem
  • 34. iTunes and iPod Ecosystem
  • 36. Nokia Ecosystem: Strengths » Nokia was ignoring the ecosystem of its devices, however, this is changing . » Nokia Home Media Solutions and Philips Streamium Wireless Audio will cooperate to deliver a music experience at home controlled via mobile phone, where the digital content flies between mobile and home devices. » The “N79 Active” was released with Bluetooth heart rate straps from Polar and a new version of Nokia Sports Tracker. » Nokia and XBOX are discussing concepts that use the same Xbox Live and PlayStation Online assets for Nokia mobile phones
  • 37. Nokia Ecosystem: Weaknesses » Browser and platform dependent web services* that turn 50-75% of users away » Weak application store with limited content selection » Incompatible Music Store with a poorly built-in media management and DRM-protected WMA files » Lack of service awareness » (also, many Nokia users donʼt know the capability of their phones) » Lack of innovation » Nokia hasnʼt opened a new segment on its own for years. » Lack of user adoption and end-device support for OVI
  • 38. Strategic Options Portfolio of Structured Options
  • 39. Options: Digital Content & Services Experience • Service & Loyalty Hub • Digital Content Retail • Social Content Discovery • Mobile Entertainment • Circular Entertainment
  • 40. D ig ita lC Convenience • Se on rv te ic nt e R & et ai Lo ya l lty H ub • So ci • al M C ob on ile te • C En nt D irc te is co Options vs. Experience Value Drivers ul rta ve ar in En m ry trt en m t Context nt
  • 41. Digital Content Experience Elements 1. Service 2. Mobile 3. Retail 4. Social 5. Discovery 6. Entertainment 7. Memories 8. Identity
  • 42. Options Comparison Service Mobile Retail Discovery Identity Memories Social Entertainment Experience Elements
  • 43. Option Profiles Customer Experience Examples Suggested Value propositions Business models Ecosystem integrations TBD Traffic opportunities Cost Feasibility
  • 44. Circular Entertainment Hub Service Mobile Retail Discovery Identity Memories Social Entertainment Experience Elements
  • 45. Circular Entertainment Hub Hub offering tools and services to help share and create common experiences with friends and family; shared memories and individual identity are based on social Business objects (songs, photos, videos) and, co-created digital content. People will express themselves via common Value objects and experiences. Customer Examples: Friendfeed, Facebook activity stream, iMovie & iPhoto albums Customer Value Propositions » Digital identity and self-expression » Re-inforce social connections and create common experiences » Social awareness » “Stay connected to your life and your friends”
  • 46. Circular Entertainment Hub Business Value Propositions » Value add component enhances product ecosystem Business » Engages next generation of global customers » Source of customer social network & activity data Value » Extends customer-lifecycle offerings Customer Revenue models » Retail transactions: digital content purchase, premium services purchase » Loss leader (loyalty) » Advertising » Revenue sharing
  • 48. Circular Entertainment Hub ‣ Creating social attachment to content ‣ Entertainment with an emotional connection
  • 49. Experience Concept: Circular Entertainment ‣ Creating social attachment to content
  • 51. Suggested Next Steps 1. Prioritize strategic options 2. Refine experience concepts 3. Define evaluation criteria 4. Release planning 5. Rapid prototype evaluation of option(s)

Editor's Notes

  1. http://www.flickr.com/photos/jazzybam/4082826943/
  2. http://www.flickr.com/photos/pag2525/4084784550/
  3. Emerging Markets and Data Will Drive Global Mobile Growth to 2013 http://www.cellular-news.com/story/35191.php Near term decline in volume of mobile device sales (2009) Long term decline in ASP of mobile devices Smart phones balance overall decline only in the Near term, advanced markets Long term growth in content & services revenue from SMS, data Emerging markets key to device sales growth, content & services growth China, India, Brazil, Pakistan, etc. Mobile ownership market penetration stable for advanced markets Increases mean multiple SIM accounts Mobile ownership market penetration rising for emerging markets Global youth require localized marketing, services, and device offerings 2G will remain the dominant technology for the near future Upgrades are driving mobile device sales growth in advanced markets Operators will feel ARPU pressure, but have revenue opportunities from services Pre-paid connections will increase to 73% of total by 2013
  4. Emerging Markets and Data Will Drive Global Mobile Growth to 2013 http://www.cellular-news.com/story/35191.php
  5. http://www.flickr.com/photos/38961093@N04/4088195154/
  6. The Top Ten Reasons iTunes Sucks By Scott Gilbertson November 5, 2008 http://www.webmonkey.com/blog/The_Top_Ten_Reasons_iTunes_Sucks
  7. Nokia to launch struggling music service worldwide ByGeorge Mitton Tue Jan 20 2009, 08:44 AM UTC
  8. 25% of Entertainment by 2012 Will Be Created and Consumed Within Peer Communities http://www.cellular-news.com/story/27824.php The study, carried out by The Future Laboratory, interviewed consumers from 17 countries about their digital behaviors and lifestyles signposting emerging entertainment trends. Combining views from industry leading figures with Nokia's own research from its 900 million consumers around the world, Nokia has constructed a global picture of what it believes entertainment will look like over the next five years.
  9. 25% of Entertainment by 2012 Will Be Created and Consumed Within Peer Communities http://www.cellular-news.com/story/27824.php The study, carried out by The Future Laboratory, interviewed consumers from 17 countries about their digital behaviors and lifestyles signposting emerging entertainment trends. Combining views from industry leading figures with Nokia's own research from its 900 million consumers around the world, Nokia has constructed a global picture of what it believes entertainment will look like over the next five years.
  10. Unlimited music download service from Nokia CWM is tied to specific phones and operator packages Users get to keep all the music after their contract expires On handsets with no link to Music Store, users need to install the Nokia Music PC application.
  11. http://www.flickr.com/photos/chrislennox/4085481677/
  12. >> Early adopter viewpoint is specific >> This generation wants to build their own experiences
  13. message = PN entering many new complex spaces may have different Revenue models customer experience must align with business model
  14. http://www.flickr.com/photos/stevenhphotography/4081331431/
  15. Incompatibility: (Web services such as Music Store, Files and Maps3 are not browser and platform independent. Incompatibility turns 50-75% of users away from the web)
  16. http://www.flickr.com/photos/jypsygen/4076108007/
  17. http://www.flickr.com/photos/jazzybam/4083048587