By Eduardo Esarey
LAST REVISION: August 2007
EXECUTIVE SUMARY
This essay proposes explore the impact of digital and mobile technologies on business models of traditional businesses in media & entertainment.
accurate data is part of the market, which account for the penetration of these devices:
Internet already has more than 1000 million users worldwide
3.25 billion mobile phone users (half of the world population)
32 million mobile phones in Argentina (almost one per person)
analyze in detail the mobile market penetration of SMS technology and the synergy that was generated with traditional media, interactivity and giving them good dividends.
have one new message
When in 1875 the Scots settled in the United States, Alexander Graham Bell developed the telephone, never could have imagined the importance that was impressive to have their invention or the endless technological revolution unleashed from its debut.
Similarly, when the Italian engineer Guglielmo Marconi, a few years later, almost the culmination of the nineteenth century, invented the radio in England, could not ever suspect that was driving one of the technologies that are most going to influence the discourse of modern society as was the further development of electronic mass media.
Later, well into the new century, while radio took hold in most countries of the world, television offered a complete dramatic than the radio and promising and promising Lumière brothers' film was not enough: the image in motion and sound, live, and a home appliance.
If something was missing from the development of these technologies, which undoubtedly revolutionized the way we communicate, was the integration of all of them and the globalization of its implementation, and this came in the personal computer and the momentum of the Internet, process which began in the early 80's.
As stated in a recent study by Morgan Stanley [1] in the world has already comfortably exceeded the barrier of 1,000 million Internet users. Globally, the number of users grows from 10% to 15% annually, while Internet use increases by 20% and 30% every year.
But people go for more, and now it seems that the paradigm is the mobility and portability. Being connected all the time, anytime and anywhere, and this has a lot to see the development of mobile devices like cell phones, which is much more than the mobile replica of a service that already existed with traditional telephony.
Few technologies have developed so fast, similar to cellular telephony. To the beat of ringtones, cell phone sales growing at double-digit rate permanently.
Similarly, when the Italian engineer Guglielmo Marconi, a few years later, almost the culmination of the nineteenth century, invented the radio in England, could not ever suspect that was driving one of the technologies that are most going to influence the discourse of modern society as was the further development of electronic mass media.
Later, well into the new century, while radio took hold in most countries of the world, television offered a complete dramatic than the radio and promising and promising Lumière brothers' film was not enough: the image in motion and sound, live, and a home appliance.
If something was missing from the development of these technologies, which undoubtedly revolutionized the way we communicate, was the integration of all of them and the globalization of its implementation, and this came in the personal computer and the momentum of the Internet, process which began in the early 80's.
As stated in a recent study by Morgan Stanley [1] in the world has already comfortably exceeded the barrier of 1,000 million Internet users. Globally, the number of users grows from 10% to 15% annually, while Internet use increases by 20% and 30% every year.
But people go for more, and now it seems that the paradigm is the mobility and portability. Being connected all the time, anytime and anywhere, and this has a lot to see the development of mobile devices like cell phones, which is much more than the mobile replica of a service that already existed with traditional telephony.
Few technologies have developed so fast, similar to cellular telephony. To the beat of ringtones, cell phone sales growing at double-digit rate permanently.
Half the world population
The number of mobile phone users in 2007 and exceeded the mark of 3,000 million people, equivalent to half the world population to strong demand from China, India and Africa. From African farmers to factory workers in China, mobile operators have scored more than 3,250 million mobile phone subscribers worldwide by year's end, according to a report from The Mobile World [2] .
Every minute, more than 1,000 new customers subscribe to wireless phones in the world, according to the survey. "It took 20 years to connect the first 1,000 million subscribers, but only 40 months to reach 2,000 million," said John Tysoe, founder of The Mobile World.
Analysts have predicted that 65% of all computers produced this year will be sold in emerging markets, thanks to manufacturers such as Nokia and Motorola phone models take more flights and operators reduce call charges.
According to the report, in the first quarter of this year sold a record 240 million mobile phones and 135 million users subscribed to mobile telephone networks.
In terms of connections, the last quarter was the third strongest in the history of the industry after the last quarters of 2004 and 2006 when it signed 142 million and 163 million users, respectively.
In Argentina, a per capita
In keeping with the trend in other emerging countries, according to the results of the Latin American version of the study of telecommunications DigiWorld 2007 [3] , Argentina is one of the three countries in the region most technologically advanced mobile telephony and one where there is more density in terms of tenure, with a growth of 50.2% last year to total 31.95 million units, representing in practice, almost one per person.
The report says that improving economic indicators, and overcoming the crisis that erupted in Argentina in 2001 had a "positive impact on the telecommunications market with strong growth." Carlos López Blanco, president of the foundation Enter [4] study coordinator, said that "in the last four years, growth in the U.S., Europe and Asia has suffered a slowdown, while in Latin America has not been given and are closing the gap on the digital divide."
The report should highlight two facts that are relevant to this analysis. The first is that the number of cellular phones in Argentina, nearly quadrupling the number of landlines, which has a total of 8.64 million lines, and the second is that over 80% of mobile phones in the hands of users of new technology are less than one year of its occurrence in the market.
Convergence
The paradigm of convergence has led many different technology focus on single source device, and then mobile phones are used not only to communicate with other people, but now take pictures, film, play files music and movies, send and receive text messages, e-mail and Internet access.
Probably this multifunctionality is provided to you by one of the most important keys to success in mobile telephony.
As I mentioned in a previous work [5] , one of the most successful devices in the market has been Apple's iPod, creating a common among young people was marked as iPodmanía. However, for those things in the convergence, the famous iPod has now built a cell phone, making it the iPhone, whose recent release in the United States has generated an expectation similar to a Hollywood premiere.
iPhone - Day oneBasta to see one of the many photographs that are posted on the Apple site, from day one of the highly anticipated launch of the device, with much of the news media around the world, calculating the number of devices sold, finally were about 500,000 in just the first weekend of release.
is good to keep in mind that the iPhone is sold at a price of u $ s 600, and that can only be used, for the moment, the operator AT & T throughout the United States at a cost of voice and data plans, ranging from U.S. $ s 60 to u $ s 100 per month.
The reputation of Steve Jobs, the famed CEO and founder of Apple, as a creator of trends in technology depends on whether the iPhone can do for phones what the iPod did for digital music: unify a fractured and confusing market with a sophisticated product and easy to use. "They want to extend the dominance they have in terms of its ability to create a truly elegant integration of hardware and software," said Mark McGuire, analyst with the Gartner Group, a renowned market research company.
Many teams are converging, also called smart phones (smart phones), which today are available in the market, combining the functions of the PDA or Handleds, with the cell phone. Just mention the Palm Treo, the HP iPaq, or the famous BlackBerry.
These devices in most cases provide GSM connectivity, GPRS, WiFi and Bluetooth, and through them can receive and send email and SMS messages, surf the Internet, playing all kinds of image media, audio and video, and connect to corporate networks.
first generation mobile
Many of us have survived in this world, taking a coin in his pocket for the phone, and when we wanted to talk with a friend, we did it in a bar or club in the neighborhood. But if we consider that the cell phone has more than 20 years of existence in the market, can say that there is a generation of young people who had contact with this technology since its inception. Indeed
children and youth aged 5 to 20 years are the target of the mobile industry worldwide. Statistics indicate that nearly 30% of the market, and that is something. These children, young
want a cellphone for reasons obvious to them. It gives them a look "fashionable" and makes them feel adult. Implies a certain status. And I can be in almost constant contact with friends, and ... spite of them, also with their parents.
On the other hand, children have the remarkable ability to adopt new technologies. And best of all for the providers: over 43% of mobile consumption are messages and data services, despite having a high sensitivity to price, and do not consume what it costs them dearly.
This is one of the reasons why young people have adopted the most massive use of SMS messages [6] to communicate with their friends, and use services added value, such as ringtones and other downloads.
SMS - Killer Application
SMS technology was originally developed for sending short messages and alerts based on user, and not to communicate with users, but such was the success of this application which was developed as part of the GSM technology standard, prompting the massive adoption becoming the killer application [7] cell phone.
So much so that now ranks first in the ranking of mobile data services, generating 80% of sales revenues of operators phones. Easy to use, relatively instantaneous, low cost and simple technology that allows it to be implemented even in the most popular handset models have been some of the main keys to success.
During the first quarter of 2007 were sent worldwide more than 620,000 million SMS, 50% more than during the same period in 2006.
in Argentina is estimated to send about 6,100 million SMS per month, but on 20 July is celebrated the day of friends, were sent in just one day, more than 800 million messages, which collapsed the service for several hours.
Premium SMS and traditional media
traditional media, mass and unidirectional, found in the Premium SMS [8] a great interactive tool, and also will provide important economic benefits from the revenue of the operators, out of advertising revenues , traditionally the only legitimate income.
Thus, by voting, registration and participation in quizzes and competitions, television and radio, first adapted to the growing complexity of the media, especially after the advent of the Internet, and other client loyalty your audience, involving them in the development of your favorite programs.
In an article published in Movilion [9] Nicholas Falcioni said: "When the viewer decides that it will send a short message to vote for your favorite character on Big Brother, is likely to continue his adventures in the rest of the program. Made an investment and want to know how it went. [...] The psychological mechanisms play a lot more difficult to measure than accounting entries. There is an emotional commitment to the proposal of the medium. Not otherwise explain why people would want to send messages to the program. In a way, the viewer feels he is responsible for the fate of their favorite contestants. "
The inclusion of SMS channel generated in the mobile arena the first boom of the premium services in the region. The TV was very effective in using SMS to teach a new generation and ensure that those users rectify some of the cost structure of its programming.
In May, the last show of Big Brother 2007, the program produced by Endemol, Telefé exceeded expectations, with 3.8 million votes. Between text messages, calls from cellular phones, there were more than 10 million votes in the 16 gala that took the cycle. This means that at least 6 million pesos entered by SMS. Although there was a higher percentage of dial-up, the collection could have gone from 8 to 10 million pesos.
This new possibility of interactivity and of course the revenue generated by its use, it also has enabled the extension of grids of TV programming, progress on non-traditional hours, like the dawn and early morning.
According to a report by Advertising Media Monitor, based on a study by the consulting Midi, Premium SMS service revenues during 2006 in Argentina more than 106 million pesos. At an average of 40 cents per message, we are handling about 265 million messages, representing an increase of 120% over 2005.
In this area, Television is the big power plant that drives the business with 93% of this market, followed far behind by the newspapers (6%), radios (1%) and magazines (0.4%). 61 million dollars is the figure with a turnover in 2006, only TV programs like Big Brother, Dancing for a Dream, Time or Matter of Weight Limit.
Conclusions
The report Global Entertainment and Media Outlook: 2007-2011, prepared by PricewaterhouseCoopers [10] , reported that the global media industry and entertainment will grow 6.4% per year to reach $ 2 trillion in 2011, with Internet, platforms TV and videogames the fastest growing sectors.
For emerging markets such as Argentina, that growth rate might be higher, profiled digital and mobile industry as the key driver.
The synergy that has taken place between the TV and mobile telephony seem to be only just beginning, and there is still plenty of material to cut.
The much talked about convergence and the constant evolution of technology in the coming years, will add complexity to the current media scene, and probably will produce fundamental changes in its structure, creating a crisis, but also opportunities that should be able to take advantage
Prof. Eduardo Esarey
[1] Morgan Stanley is a leading financial services national and international trend studies the market was founded in 1935, operates in 28 countries with more than 600 office.
[2] The Mobile World is a market analysis of mobile telecommunications sector in the UK.
[3] DigiWorld is a study ENTER Foundation held annually, covering all sectors based on digital technologies.
[4] ENTER Foundation is a global reference center information, analysis and foresight on information society and digital convergence.
[5] Road to Digital Radio, but smooth (© 2006) Essay - Eduardo Esarey
http://radiotekno.blogspot.com/2007/07/camino -la-radio-digital-but-sin.html
[6] SMS (Short Message Service) Short Message Service
[7] A killer application (killer app), or simply killer-app is a computer application decisive, ie that its implementation is the final uptake by users. An application referred to as such exerts a huge influence on the subsequent development of information technology developments and how a service is offered from the time the killer application becomes popular.
[8] Premium SMS are those who, sent to a short concrete, allow the user access a variety of services, and resulting in extra cost of sending an SMS to an end user.
[9] Movilion Newsletter and Business Mobility - http://www.movilion.com/movilion.php
[10] PricewaterhouseCooper's one of the leading international consultancy with over 140,000 employees and a presence in 149 countries
[6] SMS (Short Message Service) Short Message Service
[7] A killer application (killer app), or simply killer-app is a computer application decisive, ie that its implementation is the final uptake by users. An application referred to as such exerts a huge influence on the subsequent development of information technology developments and how a service is offered from the time the killer application becomes popular.
[8] Premium SMS are those who, sent to a short concrete, allow the user access a variety of services, and resulting in extra cost of sending an SMS to an end user.
[9] Movilion Newsletter and Business Mobility - http://www.movilion.com/movilion.php
[10] PricewaterhouseCooper's one of the leading international consultancy with over 140,000 employees and a presence in 149 countries
Copyright © 2007 by Eduardo Esarey
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To cite this work:
Esarey, Eduardo D., has a new message, (Buenos Aires, 2007)
To contact the author:
eesarte@gmail.com
Published and edited by the author
The opinions expressed herein are those of the author and are not given or shared by companies, associations or entities mentioned herein.
All rights reserved. The contents of this document is protected by Intellectual Property law, therefore is expressly prohibited any form of reproduction, distribution, public communication and transformation of this work without the express permission of the author.
The infringement of these rights may constitute an offense against intellectual property referred to in the Penal Code.
Authorization special citations:
this work or parts thereof, can be cited in papers, essays and theses for students or mid-level researchers, college, university or graduate, who attend public or private institutions, regardless of their country of origin or residence , provided it is properly referenced by a footnote on any page or a bibliography at the end of the work, and it is communicated to the author and is assume the commitment to submit to it, a copy of the complete works again has been finalized and delivered or published. If you are textual references will be added in quotes.
To cite this work:
Esarey, Eduardo D., has a new message, (Buenos Aires, 2007)
To contact the author:
eesarte@gmail.com
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