Satisfying the Mobile User Wants in Music Content #decafrica2015

THE SUPPLY AND DEMAND EQUILIBRIUM – SATISFYING THE MOBILE USER WANTS IN

MUSIC CONTENT

Oye AKIDEINDE May 19, 2015

@oyeakd #DECAfrica2015

I did not choose this JAMB Question TOPIC

we are about to talk about.

•  Some Content, Images & video clips for this presentation were copied from the web. No copyright infringement was intended.

Oye AKIDEINDE | @oyeakd | #DECAfrica2015 2

DISCLAIMER

BRIEF INTRODUCTIONS

3

WHO AM I? OYE AKIDEINDE

•  aka the Music Man aka Oye A.K.D.

•  Co-founder, 360nobs.com & 360Delivery

•  GM, Digital Music, TECNO Mobile

•  Collects Music, Movies & Comics

•  Diehard ManUtd & Dodo Lover •  http://ng.linkedin.com/in/

oyeakideinde

Nigeria’s Top 50 Songs (1960-2010) – The Complete Music Countdown http://www.360nobs.com/2010/10/nigerias-top-50-songs1960-2010-the-complete-music-countdown/

Oye AKIDEINDE | @oyeakd | #DECAfrica2015

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ABOUT •  360NoBS = Everything No BS •  360Nobs.com is an online all round entertainment & lifestyle

website with all the latest news & information. •  Voted As Nigeria’s Best Collaborative & Entertainment

Blog –  http://nigerianblogawards.com/2013-nigerian-blog-awards-winners/ –  http://nigerianblogawards.com/details/the-winners-2011-nigerian-blog-

awards/ •  Does over 4million authorized promotional mp3

downloads monthly via its mobile version of the website •  The 360nobs.com Music Charts are the longest running

online Charts in Nigeria using authentic and actual data provided by users when downloading Nigerian songs & viewing videos.


ABOUT TECNO OOMPLAYER


It’s time to find your favourite music easily on your phone

ABOUT TECNO OOMPLAYER


To build the

largest digital

music platform

in Africa with a

focus on

African music!

To build the

most

sustainable

digital music

ecosystem for

African artists.

THE MOBILE PHONE MEETS MUSIC EVOLUTION – HOW WE GOT HERE

8 Oye AKIDEINDE | @oyeakd | #DECAfrica2015

WHAT WAS THE FIRST MOBILE PHONE?


THE FIRST MOBILE PHONE 1973: With a prototype of the DynaTAC (DYNamic Adaptive Total Area Coverage) portable phone, former Motorola Vice President Martin Cooper made the first private, practical mobile phone call in a non-vehicle setting. •  Who did he call? His rival at Bell

Labs, Joel S. Engel.

1983: 10 years later after the prototype, Motorola's DynaTAC cellular phone was commercially made available to the public, weighing under 2 pounds, but costing about $4,500.00


WHAT WAS THE FIRST PORTABLE MUSIC

PLAYER?


HINT: Seen in X-Men: Days of Future Past with Quicksilver


THE FIRST PORTABLE PERSONAL MUSIC PLAYER 1972: The Stereobelt was the first portable personal stereo audio cassette player. •  It was invented by the German-

Brazilian Andreas Pavel. •  The Stereobelt was the ancestor

of the Walkman and modern-day iPod.


THE FIRST COMMERCIALLY AVAILABLE PORTABLE PERSONAL MUSIC PLAYER

1979: Sony released the Walkman - portable audio cassette players •  The Walkman introduced a change in music listening habits by

allowing people to carry music with them and listen to music through lightweight headphones.


THE FIRST COMMERCIALLY AVAILABLE PORTABLE DIGITAL MUSIC PLAYER

1983: Sony partnered with Philips to create the D-50 which became commonly known as the Discman. It played compact discs and was the first portable digital music player.


TECHNICALLY, THE FIRST COMMERCIALLY SMARTPHONE

1993: Perhaps the world's first smartphone, IBM Simon was a mobile phone, pager, fax machine and PDA, all rolled into one. It included a calendar, address book, clock, calculator, notepad, email, gamers and a touchscreen with QWERTY keyboard. It was sold for $899


THE FIRST MOBILE PHONE WITH AN IDENTIFIABLE RINGTONE OTHER THAN “RING RING” 1994: Nokia 2100 – 1st phone with the “Nokia tune” •  There are a number of happy

accidents of history in the mobile phone story in terms of successes that nobody foresaw.

•  One of those happy accidents was the mobile ring tone bonanza.

•  Without doubt its foundation was laid by Nokia with their introduction of the Nokia tune.

•  It was the first identifiable musical ring tone on a mobile phone and in this regard the Nokia 2100 was game-changing mobile phone for the industry and consumers.


1996: The first commercial mobile phone with customizable ring tones was the Japanese NTT DoCoMo Digital Mova N103 Hyper by NEC. It had a few preset songs in MIDI format

The Digital Minimo D319 by Denso was the first mobile phone where a user could input an original melody, rather than the preset songs.

MP3 WAS BORN 1995: Karlheinz Brandenburg, who first started his work on finding a way to transmit music over digital phone lines in 1982 by separating sounds into 3 layers agreed with Motion Picture Experts Group (MPEG) to the new format & music file extension - .mp3, after realizing that this new format could be of great use to the growing Internet. •  MP3 (MPEG-1 Audio Layer III) became the standard means of

compressing a sound sequence into a very small file, to enable digital storage and transmission

•  It was around this time that Brandenburg was asked a telling question by an English entrepreneur: “Do you know that this will destroy the music industry?”


THE FIRST MOBILE RINGTONE SERVICE

1998: The first downloadable mobile ring tone service was created and delivered in Finland, when a Finnish mobile operator Radiolinja started their service called Harmonium. •  The Harmonium contained both

tools for individuals to create monophonic ring tones and a mechanism to deliver them over-the-air (OTA) via SMS to a mobile handset.


THE FIRST MP3 PLAYER •  1998: The MPMan was the

first flash MP3 player to be released, allowing high quality digital music recordings.

•  D e v e l o p e d b y K o r e a n company SaeHan Information Systems, the player featured 32 MB of RAM and held an average of 32 minutes of music.

•  It ran on a rechargeable NiMH battery pack and used solid-state memory.


ONLINE PIRACY: ALL HAIL THE NAPSTER!!!

1999: The inevitable rise of peer-to-peer music sharing resulted in one of the most infamous companies of the Internet age •  Although it was only around for 2 years,

the invention of Shawn Fanning, John Fanning, and Sean Parker shook up the music world.

•  Napster was a simple, free peer-to-peer (P2P) file-sharing service; it wasn’t the first, but its focus on MP3 sharing catapulted it to almost 25 million verified users in February of 2001.


•  Despite the attack and subsequent quick death of Napster, many other P2P file-sharing services sprung up – Bearshare, LimeWire, Kazaa etc. It was not a good time for these services, and many of them were shut down with similar lawsuits.

•  Of course, P2P music sharing still exists today, with BitTorrent being one of the most popular formats in use — especially because of its decentralized format, which can’t easily be shut down.

THE MP3 ERA IS TRULY BORN 2 0 0 0 : S a m s u n g launched the SPH-M100 that brought together for the first t i m e t h e m o b i l e p h o n e a n d M P 3 player and integrated storage.


2001: Apple launched its portable media players and mul t i -purpose pocket computers called the iPod. Jobs announced it as a Mac-compatible product with a 5 GB hard drive that put “1,000 songs in your pocket”. Prior to this, Apple had launched iTunes (Macintosh version) about 8 1⁄2 months earlier.

DIGITAL MUSIC DOWNLOADS & STREAMING

2003: Apple released iTunes 4, which included the iTunes Music Store, Apple’s entry into the music sales business. •  The ability to purchase a

song or an entire album with a single click was obviously very appealing to users, and has remained so


2005: Though the title of “1st music streaming service” isn’t easy to bestow, Pandora easily takes the “biggest early music streaming service” label, pioneering the style of music recommendation service that would grow to become one of the biggest trends in modern music.

SMART MUSIC PHONES

2005: Believe it or not, the iPhone wasn't the first cell phone to have Apple's iTunes music player integrated. It was the Motorola ROKR E1, but it only could manage 100 songs at a time—not quite the same as an iPhone.


2007: In 2007, Steve Jobs introduced the Apple iPhone, a revolutionary touchscreen smartphone. It wasn't the first smartphone, but it was the first to get the user interface right, eventually adapting 3G technology (which was already available since 2001). Apple cannot be credited with bringing the Internet to the mobile phone – what they pulled off with stunning brilliance was to make it a compelling consumer experience.

NIGERIA (2006 – 2010): THE RISE OF ENTERTAINMENT & MUSIC BLOGS 2006: www.notjustok.typepad.com


2008: www.nigerianhiphop.net

2010: http://www.360nobs.com

NIGERIA (2011): MOBILE INTERNET GETS BETTER •  360NoBS.com tweaks the

audio wordpress plugin to maximize download & compression speeds

•  Mobile visits rise to 41% compared to Desktop (59%)


Spinlet becomes Africa’s 1st Music Streaming & Download mobile app for media distribution to emerging markets

TODAY: AFRICA’S FIRST TRUE SMART MUSIC PHONE

•  The TECNO Boom J7 is an Amazing Amplified Music Phone for Audiophiles.

•  It comes pre-installed with TECNO’s music streaming & download s e r v i c e – t h e boomplayer


WHAT DOES A MUSIC CONSUMING MOBILE USER WANT?

28

CONSUMERS’ MUSIC TASTE TIMELINE


http://research.google.com/bigpicture/music/

MP3s are one of the most popular search items on major search engines


THE GLOBAL DIGITAL MUSIC REVOLUTION

NIGERIA MOBILE & SMARTPHONE USE

NIGERIA INTERNET USE The Youth Factor

100,000,000+ Youth 60,000,000+ use Mobile Phones 78% of Internet users between age 19-35 Students are 45% of Internet population

Number of internet users in Nigeria from 2013 to 2018 (in millions)

Source: eMarketer; ID 183849

Note: Actual figures: 2013 to 2014

51.8 57.7

63.2 69.1

76.2

84.3

0

10

20

30

40

50

60

70

80

90

2013 2014 2015* 2016* 2017* 2018*

Num

ber o

f int

erne

t use

rs in

mill

ions

THE OPPORTUNITY – NIGERIA

34

Markets with the highest year-over-year smartphone subscriber growth rate worldwide in 2014

Source: Kleiner Perkins Caufield & Byers; ID 249462

Note: Worldwide; 2013

45%

41% 39% 39%

36% 36% 36% 34%

31% 30% 28% 27% 27% 27%

24%

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

30.0%

35.0%

40.0%

45.0%

50.0%

Sm

artp

hone

sub

scrip

tion

grow

th ra

te

THE OPPORTUNITY – NIGERIA (CONTD.)

35

THE MOBILE MUSIC REVOLUTION

THE NIGERIA MUSIC MARKET

N150 – N1,500 = 1 album sale N15 = 1 approximate cost of 1 song

N100 = 100 USB songs

THE NIGERIA MUSIC MARKET

MOBILE CONSUMERS WANT TO CONSUME MUSIC ON THEIR PHONES


1.39

11.63 20.73

39.99

72.29

125.05

150.26

169.22

51.63 54.83 54.13 50.31 42.62

35.17 26.38

14.38

0.

20.

40.

60.

80.

100.

120.

140.

160.

180.

2007 2008 2009 2010 2011 2012 2013 2014

iPHONE

iPOD

Global Apple iPhone sales in the fiscal years 2007 to 2014 (in million units)

THE EQUILIBRIUM

•  Is the market competitive? YES •  Do Mobile consumers want music for

FREE? Not really. •  Is the UNIT Price fair for Consumers?

YES


EQUILIBRIUM? – NEW MUSIC


DEMAND SUPPLY

EQUILIBRIUM? – ALL MUSIC


DEMAND SUPPLY

TO INFINITY & BEYOND


THE FUTURE So if streaming loses the crown as the most widely used form of music listening, what will take its place? •  We can assume that music technology could

advance so drastically within the next five or ten years that we wouldn’t even be listening to artists anymore.

•  We might plug ourselves into virtual machines that would take our tastes and procedurally generate new music that would perfectly fit what we like in our music libraries, much like video games are using procedural generation


CONCLUSION •  The history of music consumption is a long one, and spans

almost 150 years. The history of music, and music performance, is a lot longer, with some philosophers believing that music is one of the the defining characteristics that makes humans different from lower-order animals.

•  Music has played a role in how we celebrate, worship, communicate, design, and build for centuries, and it will likely remain one of the powerful tools in the human cognitive vocabulary. Music is a powerful thing, and the way in which we relate to it has changed as we have evolved and become more advanced as a species.

•  We’ll continue to innovate, challenge, and completely change the ways in which we consume it.


QUESTIONS?


Presentations & Public Speaking

Satisfying the Mobile User Wants in Music Content #decafrica2015