Mobile Media Opportunities

Mobile Media Opportunities rolled into Vaya Mobile!

I have recently rolled Mobile Media Opportunities into a new mobile services firm – Vaya Mobile!

Vaya Mobile provides mobile marketing, product development/management, and business strategy, planning and development services to corporate, non-profit and government clients. Please visit us at vayamobile.com!

This site/blog, mobilemediaopps.com, will not be updated for an indefinite period of time.
Thank you,

Adam Reyer
Managing Director
Vaya Mobile

Add comment February 8, 2010

Mobile Media Opportunities provides strategic consulting, business planning and development, product development and technology services to media and communications companies expanding into emerging digital and mobile media platforms. more…

July 26, 2009

Can I get it on my iPhone?..the wonderful world of fragmented media

As more traditional media programming becomes available online and mobile media devices, applications and services proliferate, there continues to be much confusion over what content is available when and where. By way of example, this past Sunday I was at my daughter’s soccer practice when it occurred to me that I could probably be listening to the Redskins game or, better yet, the Giant game via streaming audio on my iPhone. Having just listened to the first half on ESPN980 AM in the car on the way over, I decided to launch the ESPN Radio app on my iPhone (I did this not only because the UI would be better that going to espnradio.com in the iPhone Web browser but because I thought there was a good chance the streaming audio would be in Flash, which isn’t supported on the iPhone. I was chagrined to find out that ESPN980’s webcast did not include the game, however, which I erroneously attributed to ESPN not wanting to cannibalize its radio broadcast with streaming audio where they don’t make as much advertising revenue. Although that was a plausible explanation, I’ve since realized that the NFL must have held back the streaming audio rights for its own, $39.99/yr. subscription online NFL Field Pass service.

As I continued to toil away at trying to find the Redskins audiocast, I noticed one of the other parents (a Mom, no less), watching something on her iPhone. I was further surprised to see that it was a football game. Thinking it was the Redskins game, I inquired whether she might be watching Qualcomm’s FloTV mobile broadcast service through AT&T or Verizon (I know those services have some Broadcast Network programming but I doubted they’d be airing the games). However, it turned out that, as a subscriber to DirecTV’s $300 NFL Sunday Ticket service (which broadcasts every NFL game) and the $100 NFL SuperFan upgrade, which offers those games in HD plus some other perks, she could stream any/all NFL games live through DirecTV’s NFL SuperFan app on her iPhone (also available on Windows Mobile, Palm Pre and certain Blackberry smartphones) – and the picture quality was reasonably good. AND she was watching the Giants game, which was the game I really wanted to watch, anyway!

This experience, combined with my prior day’s experience of frantically searching for on-demand access to some missing episodes of the great AMC series Breaking Bad, which I had stored up on my old Tivo box (it turned there were two options – to download the episode on iTunes for $2.99 and watch on our PC-connected TV or download it directly to our Tivo box using Amazon Unbox for $1.99), reinforced my opinion that, despite making great strides toward on-demand media anywhere, there is going to be a lot of confusion for some time to come about what media is available when and where.

Now, just don’t get me started on the 24-hour time limit that Hollywood Studios impose on on-demand new release film rentals once you begin watching them on iTunes, Amazon Unbox, Cable VOD or other on-demand services – has there ever been a worse customer experience than starting a movie on your iPhone/iPod and then losing access to the ending because you didn’t have time to finish it within the 24 hour window?!..after all, haven’t the Studios leaned anything from the failed subscription music services in which the licenses to all of your music would always seem to expire at the most inopportune moments (like the minute you leave for vacation).

I am sure this discussion will be continued…and continued…and continued…

Add comment October 1, 2009

Rhapsody’s iPhone App: Close but no Cigar

For long suffering unlimited subscription music subscribers, such as myself, the release of Rhapsody’s iPhone app was welcome news. Most music fans underestimate the benefits of unlimited, on-demand music since they figure they currently buy fewer than 1 1/2 albums/mo., which the monthly subscription fee would equate to. What they don’t realize is that, with Rhapsody, you’ll end up downloading MUCH more music since you’re no longer constrained by price. One of my stock phrases is that, “music is the only mass medium in which we significantly constrain our consumption due to cost.” Although cable TV is expensive, the vast majority of us pay for it; going to a movie is still seen as a relatively cost-effective way to spend an evening out and none of us read fewer books or magazines due to their cost.

Despite the benefits of unlimited music, the subscription services have been disasters for several reasons:

DRM, DRM, DRM!: DRM has infuriated subscribers for years by consistently denying users access to their music on their MP3 players when licenses expire – this is unacceptable for a free service, let alone one that costs $15/mo.
Hardware/Software/Integration Issues: The Rhapsody client software has typically been prone to freezing up or crashing and getting it to reliably recognize MP3 players has sometimes been difficult (this is, further, complicated by the myriad of new Rhapsody client and MP3 player firmware updates users typically go through).
Competing, Free Personalized and Social Music Services for Music Discovery: Rhapsody doesn’t have best-in-breed features of the free streaming services, such as Pandora and LastFM. Since there’s no integration of those services with Rhapsody, I find myself wondering why I use those services but still pay $15/mo. for Rhapsody.
Incompatibility with iPod/iPhone: This has always been an obstacle and continues to be one even after Rhapsody launched its iPhone app (see why, below).

So, Rhapsody subscribers figured the Rhapsody iPhone app would take care of most of these issues by allowing you to access your library and the Rhapsody store via the iPhone. The app is a real step forward but still suffers from some shortcomings:

You can’t download tracks over-the-air from the Rhapsody Store. iTunes has required track purchasing to go through the iTunes Store but that’s irrelevant for Rhapsody subscribers who’ve already paid for the right to download/rent the song.
QOS: out of the gate, the Rhapsody app seems slow and freezes a lot. In addition, the quality and reliability of the stream seems inferior to some of the competing services.
No offline playback. As pointed out in this Wired article, the lack of offline playback often makes the stream pale compared to MP3 track playback (supposedly Spotify will have some form of offline playback in their upcoming US iPhone App – they already have an iPhone App in the UK).

So, what’s the recipe for success in subscription services?..I think it will be unlimited, on-demand, streamed tracks for <$10/mo. with unlimited downloading WITHOUT DRM – all with full integration of best-in-breed social and personalized services for Discovery. When this finally happens, you may only need one music service. Apple is in the best position to do this but my sense is that it will take an aggressive, ambitious start-up, like Spotify, to make this happen. Until then, I applaud Rhapsody for a game effort (with one hand tied behind its back by Apple) but I’m still waiting…

Related Article: iPhone App Won’t Save Rhapsody

Add comment September 11, 2009

U.S. Wireless Data Market Update – Q2 2009

Some of the more interesting highlights from Chetan Sharma’s Q2 ‘09 U.S. Wireless Data Market Update, include the following:

Wireless Data Market grew 7% Q/Q and 30% Y/Y to $10.6B in revenues – ahead of Japan and China (no recession here).
Shift from postpaid to prepaid – prepaid constituted 82% of quarterly net adds, up from 21% in Q2 ‘08
Landline replacement has now reached a whopping 24%.
Smartphone penetration should exceed 25% in Q3 ‘09.
M2M (machine-to-machine, i.e., wireless chips/service on other devices) getting a lot of carrier focus as growth area (AT&T has new bus unit and Verizon & Qualcomm have new JV)
Avg. data % contribution to ARPU should hit 30% in 2009 in US
App stores all the rage – non-messaging services continue to get 50-65% of US data revenues
App Store vs. Mobile Web discussion growing. Seems reasonable that native app platforms will be better for apps requiring significant UI resouces (e.g. games) while Mobile Web better for other apps – particularly since Mobile Safari now incorporates location API access.
Growth in smartphone data usage putting pressure on networks
VC market declined to 1.2B for 1H ‘09 from $2.1B in 1H ‘09
India net adds were 140M in last 4 quarters vs. 100M in China

Add comment August 20, 2009

Apple Tablet – Trash or Treasure

The debate over whether an Apple Tablet would be a hit, or not, is beginning to heat up and should escalate over the next 3-9 months, depending upon when it hits the market. Michael Scalisi wrote in PC World that an Apple Tablet would be a train wreck for the following reasons:

Form Factor: tablet form factor is not good for watching video since it lies flat
Virtual Keyboard: takes up too much screen real estate on 10″ display and sacrifices the screen protection of a physical keyboard
OS: iPhone OS is great for a phone but has limitations on a larger device; iPhone apps are designed for the 3.5″ screen and won’t translate well to a larger device
Wireless Broadband: bundling it with wireless broadband would make the monthly cost too high

Scalisi concludes that such a device would need a “killer twist” to succeed, which, he notes, wouldn’t be the first time we’ve seen that from Apple.

On the other side of the debate is Jason Schwarz, who wrote in Seeking Alpha that Apple’s iTouch Tablet Will Become its Flagship Product, citing the following reasons:

The Ultimate App Machine: Jobs says he’s never seen anything like the success of the Apple App Store and Schwarz says the iPhone wasn’t designed to be the ultimate app machine – it’s too small.
Mobile High Speed Connectivity: the ability to have a non-phone device with wireless broadband wasn’t available until now. Schwarz thinks an Apple tablet with the likes of a new MiFi peronsal, portable, hotspot (with wireless contract) and an Apple tablet would be killer and a much better attempt than the current netbook “fad” and the one-dimensional Amazon Kindle.
Free Communication: the trend is toward free communication over the internet and away from wireless carriers. Apple can deliver this with iChat and a built-in camera and mic.
No Carrier Exclusivity: the exclusivity on the iPhone hurt Apple and this device would have flexible connectivity, including wi-fi, of course.

Ultimately, I think that Scharz is closer to the mark in thinking that an Apple Table would become Apple’s flagship product. The core question seems to come down to weighing its beneftis as a web browsing, app and media device (all of which would significantly expand upon the iPhone) vs. its limitations of not having a physical keyboard or fully robust operating system and being too large for complete portability. The reason the benefits should far outweigh the limitations can be explained by changing usage habits. Specifically, smartphones (initally Blackberry and now the iPhone) have become such good productivity tools that, short of heavy business users, people are increasingly comfortable traveling without their laptops. An Apple Tablet would negate the need for a laptop and households would only need smartphones, an Apple Tablet, or two, and a desktop or desktop replacement laptop.

It will be fun to see the speculation and debate mount over the coming months – enjoy!

Add comment August 7, 2009

Internet Radio Finally Has a Future

I was recently thrilled to see that SoundExchange, the music industry licensing body, finally agreed to lower its royalty rates for pureplay streaming music services (i.e. for the Pandoras, not broadcast radio simulcasts). It seems that the music industry finally realized that the current royalty rates, which they had lobbied hard to put in place, were, in fact, going to put many pure play Internet radio companies out of business and that Internet radio might, actually, promote digital music sales. The impact of the royalty rate reduction settlement was clear from Pandora’s $35 million financing round announced within days, thereafter.

Well, that was the first step toward securing a future for innovative, personalized, interactive music services, such as Pandora, LastFM, Slacker and others. The second shot in the arm for such services has been their new-found popularity on mobile devices, thanks to 3G networks and, of course, the iPhone (and, to a lesser extent, the auxiliary input jacks now commonplace in cars, through which Internet radio makes for a pretty darn good experience).

Internet radio’s most recent move toward longevity is exemplified by Pandora’s recent agreement to let broadcast radio conglomerate Clear Channel sell audio ads on Pandora. Although this move will surely be controversial among listeners (after all, who prefers interstitial audio ads to commercial free music), Internet radio services must find a way to tap into local advertising, which dominates the broadcast radio advertising market. Local ad sales requires local sales teams, however, which Internet radio companies cannot afford. Therefore, deals such as Pandora’s with Clear Channel are likely the best path for profitability and, hence, survival, for Internet radio players (AOL and Yahoo figured this out a couple of years ago and each partnered with CBS Radio on their respective Internet radio services).

I hate to see interstitial audio advertising on Internet radio but, as long as it’s “short, tasteful and infrequent,” as Pandora Co-Founder Tim Westergren has stated as Pandora’s ad sales strategy, it is much preferable to those services going away – and besides, advertising will surely become more personalized/relevant and less interruptive/obtrusive over time and low rate, commercial free subscription versions of these Internet radio services are often made available for those willing to pay. Bravo!

Add comment August 3, 2009

Welcome to Mobile Media Opportunities!

Welcome to Mobile Media Opportunities, a new consulting firm that provides strategy, business planning and development services to media and communications companies seeking to expand their businesses via the burgeoning world of mobile media. I have worked in digital/mobile media since the early days of the Web when I was an on-site consultant to AOL. I have since worked in a variety of business development and operational capacities for Discovery Communications and, most recently, XM Satellite Radio.

As I reminisce on some of the key developments in digital media I recall over the years (e.g., Netscape, AOL/Mail/I.M, Yahoo, Amazon, eBay, Google, Skype, Blackberry, Napster, iPod/iTunes, Tivo, Wi-Fi, Bit-Torrent, MySpace, Youtube, 3G, Facebook, Twitter, Netflix, Kindle), I can’t think of any that, necessarily, had a greater impact than the iPhone. Considering that wireless communications have likely had an equal or greater impact on our daily lives as the Internet, itself — and, considering that the iPhone has been the first major success at making the totality of the Internet accessible to wireless handsets — I think my assertion is defensible. Irregardless, I’ve yet to meet any fan of the Internet, digital media and gadgets who doesn’t think the iPhone is having a huge impact on the wireless industry (particularly in the U.S.).

And, as iPhone is revolutionizing cell phones, a whole range of new mobile devices (e.g. netbooks, smartbooks, feature devices like Kindle, etc.), fueled by wireless operator subsidies and 4G rollouts in the not-too-distant future, promises to do the same to the PC/Notebook world. And, with Apple, supposedly, launching a larger iPhone (or media tablet), which will solidify their dominance in mobile media, the netbook/smartbook manufacturers will be in good position to quickly follow Apple’s lead.

All of this adds up to a yet another revolutionary period in digital media on the horizon, which is why I have launched the mobile media consulting firm – Mobile Media Opportunities (I imagine the cynical among you will think it’s the soft job market ).

I look forward to engaging with you all here at the Mobile Media Opportunities blog, at industry events, through our services rendered or wherever the mobile media industry takes us!

Sincerely,

Adam Reyer,
Founder and Lead Consultant
Mobile Media Opportunities

Add comment July 18, 2009

Mobile Media Opportunities