Copyright © 2006 ClearSky Mobile Media, Inc. Planning Mobile Entertainment Strategy Planning Your Mobile Entertainment Strategy

Copyright © 2006 ClearSky Mobile Media, Inc.

Planning Mobile Entertainment StrategyPlanning Mobile Entertainment Strategy

Planning Your Planning Your Mobile Entertainment StrategyMobile Entertainment Strategy



ContentsContentsWhy Undertake a Mobile Data StrategyWhy Undertake a Mobile Data Strategy

Where is the MoneyWhere is the Money

Mobile Entertainment Value ChainMobile Entertainment Value Chain

WAP – The Workhorse Of Mobile EntertainmentWAP – The Workhorse Of Mobile Entertainment

Merchandizing your StrategyMerchandizing your Strategy

Billing Mediation – Monetizing your StrategyBilling Mediation – Monetizing your Strategy

Organizational ImplicationsOrganizational Implications

ClosingClosing










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The Underlying Driver of The Underlying Driver of Mobile Entertainment StrategyMobile Entertainment Strategy

It’s about personalization



Settling the ”Voice vs Data” DebateSettling the ”Voice vs Data” Debate

Goal is to sell units and keep them

Selling and keeping customers is built on differentiation

Voice is voice (coverage notwithstanding)

Data is differentiation

Differentiation = Sales + Loyalty = Market Share

Debate is really an internal one

Market is settling the debate with their money



Consumer vs Enterprise DataConsumer vs Enterprise Data Enterprise – Robust

Solutions oriented Typically requires more “Consultative” sales

Consumer – Every phone, corporate or individual, is personal device Every phone can be personalized Distribution of product is already in their hands Marketing programs directed to handset Sales becomes viral and intuitive

Bottom line – Through service personalization Augment revenues Increase loyalty Market and distribute directly to handset Leverage scalable distribution










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The Four Key Money Makers The Four Key Money Makers in Mobile Entertainmentin Mobile Entertainment

1. Mobile Web Internet access via a handset

2. Downloadable Content Ringtones Wallpapers Games Video

3. Multimedia Messaging Camera phone enablement

4. Premium SMS “Off deck” content delivery Mobile marketing campaigns

8



Numbers Don’t LieNumbers Don’t Lie 2005 US Content Downloads – Doubled to 575 m

generating $1.3b

2005 data ARPU up 76%

2005 voice ARPU down 3%

Sales Mix Ring Tones 58%

Games 28%

Wallpapers 12%

Videos 2% (growth product)










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Mobile EntertainmentMobile EntertainmentValue ChainValue Chain

Consumers

Application/Content

Aggregation

ConsumerFacing Portals

Content Creation

Application Creation Transaction

Mgmt/Billing

Wireless

Network

Software DevelopmentSoftware DevelopmentCommunityCommunity

Record CompaniesRecord Companies

Publishers &Publishers &BroadcastersBroadcasters

Content AggregatorsContent Aggregators

Entertainment EcosystemEntertainment Ecosystem

Content AggregatorsContent Aggregators

CarriersCarriers

Billing CompaniesBilling Companies










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Mobile Browsing BasicsMobile Browsing Basics

WAP browsing is the workhorse for mobile data Infrastructure – Wireless

Application Protocol Gateway (WAP)

Can be in-network or a hosted services

All Handsets are WAP-ready All new phones come w/

browser capabilities

Carriers must create the “home deck” mobile browsing experience



The Mobile Web is the Internet via WAPThe Mobile Web is the Internet via WAP

Managing a mobile web offer is fundamentally managing access to a variety of WAP sites

Using a WAP content management tool provides total control of the mobile web experience



Mobile Web Browsing ArchitectureMobile Web Browsing Architecture

The WAP gateway is central to all data traffic The WAP Deck Management platform manages the subscriber main menus and thus their overall

online experience Billing Mediation tracks WAP activity

PDSN/GGSN

WAPGateway

WAP DeckManagement

WAP ContentSite

MSC

MMS-CSMS-C

WAP ContentSite

Internet

BillingMediation

CarrierNetwork

Core

MobileEntertainment

Platforms

Subscriberon

the MobileWeb










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Hot Commodities in Downloads Hot Commodities in Downloads Its All About PersonalizationIts All About Personalization

Ringtones Outsells every other type of download 2:1

Wallpapers Amazingly popular given that people can make their own

with camera phones

Games Simple sells best

Tetras is the # 1 mobile game in the world – bowling is # 2

Video Clips The hot new category

Difficult to merchandise – how can people see if they want to buy with out giving it away in the process?



The Download Business RequiresThe Download Business Requires“Merchandising” Your Content“Merchandising” Your Content

Two places for content catalogs Mobile browser Desktop web portal

The vast majority of sales will come from the handset WAP portal

Good presentation is key

Remember the 80/20 rule – 20% of the content will represent 80% of your volume



Desktop PortalDesktop Portal Purchase

content for your phone from the desktop

Pushes content out to the handset after purchase

Branded with your company look and feel

Linked off your company website



WAP Content Purchase PortalWAP Content Purchase Portal

Purchase content for your phone directly on the phone

Provides a simplified listing of content

Tied back into the Mobile Web offering



Architecture for Downloadable ContentArchitecture for Downloadable Content

PDSN/GGSN

WAPGateway

WAP DeckManagement

WAP ContentSite

PostpaidBilling

Platform

MSC

PrepaidBilling

Platform

MMS-CSMS-C

WAP ContentSite

Internet

BillingMediaton

CarrierNetwork

Core

MobileEntertainment

Platforms

DownloadDistribution

Platform

SubscriberDesktop Portal

Access

Subscriberon

the MobileWeb

The Download Distribution Platform stores the content and provides both the desktop and WAP portals for content selection










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Three Business Model OptionsThree Business Model Options

1. Kilobytes of Use The easiest from the network perspective The most difficult for consumers to understand How many kilobytes on a WAP page – WHO KNOWS!!

2. Minutes of Browsing A more logical usage metric in the consumers mind Carriers can use their existing voice minutes plan Requires some configuration and averaging

3. Monthly All-you-can-eat Very popular with U.S. consumers but not elsewhere Creates a barrier to entry – consumer must contact customer

service and sign up



Billing ConsiderationsBilling Considerations

Limit to Post Paid Subscribers May use batch billing mediation for monthly

Limits portion of the base that can participate

In developing markets, as little as 10% of base in Post Paid

Open to Pre-Paid Must have real time balance check to avoid revenue

leaks

Opens data products and services to more of the base










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Organizational ChallengesOrganizational Challenges

Engineering – New components and protocols

IT – New billing records

Marketing – New, complex marketing relationships

Sales & Service – More feature rich handsets and services



Key Take AwaysKey Take Aways

Mobile entertainment offers ARPU, growth, loyalty opportunities

Markets are proven in all regions in both pre-paid and post paid segments

Product offerings are robust

Enabling technologies are readily available

Execution can be complex

Alternatives for rapid, low cost market entry exist today

Documents

Copyright © 2006 ClearSky Mobile Media, Inc. Planning Mobile Entertainment Strategy Planning Your Mobile Entertainment Strategy