Mobile music Elina Vartiainen 19.4.2005 T-109.551 Research Seminar on Telecommunications Business II Spring 2005.

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Presentation transcript:

Mobile music Elina Vartiainen T Research Seminar on Telecommunications Business II Spring 2005

Agenda Introduction Technical background Business models  Pre-conditions  Value chain participants  Potential revenue sources  Business model scenarios Case: Vodafone Live! Conclusions

Introduction Developing into a big business opportunity in different corners of the world Variety of products and services available Networks are speeding up

Technical background Two audio format concepts: natural and synthetic audio

Technical background File formats for natural mobile audio

Technical background Mobile audio formats for different services

Technical background Formats for synthetic mobile audio

Technical background Different connections

Business models Pre-conditions:  Consumers are accustomed to mobile music  Music consumers and wireless pioneers are congruent  Little input functionality for linear content is required  Formats and rendering devices are already available  Audio content is digitally available as compared to books and graphics

Business models Value chain participants:  Content owners  Aggregators  Carriers  Handset manufacturers  Consumers

Business models Potential revenue sources  Airtime sharing  Promotions and sponsorship  Transaction-oriented revenues  Content aggregation and subsription  Levies and taxation on devices or bandwidth

Business models Scenarios:

Business models First scenario: Free peer-to-peer distribution

Business models Second scenario: Music service provider

Business models Third scenario: Subscription models

Business models Fourth scenario: Superdistribution

Case: Vodafone Live! 3G music download service Launched in November 2004 with music tracks in 13 markets Tracks in AAC format Cost of downloading a full track around €1.5 depending on the country, also monthly packages Content protected by DRM

Conclusions Compatibility must be ensured to enable the success of mobile music 3G and especially WLAN offer fast connections in the future Most preferable revenue source for mobile music are generated from transactions  With DRM: subscription plans and superdistribution  Without DRM: promotions, sponsorships and license of mobile music services