Simon Perry

  • i-mode UK Bound Via mmO2?

    There has been some press speculation over the last day or so about mmO2 partnering with DoCoMo to bring their phone and content platform, i-mode, to the UK. Reuters reported that mmO2’s Chief Executive, Peter Erskine, had said last week that the company would decide by year-end on whether to introduce i-mode.

    Things appear to have moved on, and this morning the Financial Times is more firm on the story, reporting that O2 will announce the deal next week. They say the service would start next year.

    We spoke to mmO2 and their official comment was “the process is ongoing and we are still on schedule to announce before the end of the year”, so no big scoop for us there then. In conversation they did mentioned that the i-mode service has become more attractive over the years, since they last looked at it. Over that time the available range of handsets has increased significantly, it has driven up usage in the markets it has been deployed and the range of content available now for the platform has increased substantially.

    [A brief interlude. Why is the company sometimes called mmO2 and other times O2? Let us clear up the confusion. mmO2 is the parent company that operates in a number of countries (UK, Ireland, etc). Its operating units in these countries are called O2. So, parent co=mmO2, local instance=O2.]

    i-mode is a huge in Japan, where it has 42m users. Some even credit it with bringing the Internet to the youth of Japan. As home computer ownership previously wasn’t that large, the youth used their phone to get online.

    It is already running in four European countries; Germany, France, Italy and Spain, although the take up figures haven’t been what you would call stunning, running at around 4m over the continent. The UK is a big gap in DoCoMo’s European coverage.

    For content producers, the most interesting thing about i-mode is its content publishing model. Compared with other mobile platforms in the UK who can take as much as 50-60% of payments made by consumers, i-mode takes significantly less – in the low double digits.

    It’s deals like this that are highly likely to draw content to mmO2 – it’s not wholly surprising that content producers will be inclined to get the most income from their wares as possible.

    Given the current fashion among 3G watchers is to think that the winners in 3G will be those with the strongest content, a generous share of the income to draw in content owners could be a very smart move by mmO2.

    DoCoMo
    mm02

  • CNN News Free to Mobiles, Xerox Sponsored

    CNN News to mobiles, Xerox SponsorCNN has launched a news service over Europe that delivers the top ten CNN headlines to mobile phones without a subscription charge.

    The phone owner will receive the 10 top stories of the day as chosen by the CNN.com site editorial team. If the application is kept ‘live’, ie. running on the handset, it will continue to receive news updates. When the GPRS (General Packet Radio Service) is turned off, either by the user or because they drop out of range, the news items remain accessible, as they are stored on the handset.

    The process of signing up for the service sounds simple. The phone user sends an SMS requesting the service and a returned WAP link takes the phone to a Java application that is automatically downloaded to the handset. The news is then delivered to it using the data-only GPRS otherwise know as 2.5G.

    Consumers will not have to pay a subscription charge for this service, as Xerox will be sponsoring it. In return Xerox will have their logo displayed as the service starts, on the home page and on the individual news pages. Xerox is paying a fixed price for the deal, which doesn’t vary on the number of people who sign up for it. Although users of the service can click through to a page of information about Xerox, which they have editorial control over, the real driver for their involvement is the association with the CNN brand and a leading-edge application of technology.

    CNN have been pretty adventurous in distributing their news product to many platforms. CNN mobile currently offers a breaking news service to mobiles via SMS, which it charges Euro 4.75/month. In Austrian, Finland, Italy and the Netherlands, mobile owners are able to watch CNN on their handsets via their GPRS video streaming service.

    There will be those in the mobile content world who will find this type of deal a little disturbing. They are currently very pleased that consumers appear to associate mobile content with paying – in stark contrast to Internet based content. If the consumer starts being offered quality content for no money, they might get used to it.

    Expect more deals like this from media owners, as Kevin Razvi, head of CNN International ad sales says, “Our expanding portfolio of wireless businesses exposes advertisers directly to a broad consumer base through a highly relevant service for an increasingly mobile and technically-savvy target audience.”

    CNN
    Xerox

  • Distributed Audio Award (2004) Winners Announced

    Meda Bravo Digital Media ServerBelow are the winners of the Distributed Audio Award (2004) announced at Electronic House Expo in Long Beach, California. Chosen by a panel of five industry experts, they were selected for their innovation, functionality and practicality.

    While none of the products here will blow the socks off regular readers, these give a good indication of the state of play in the home entertainment market, showing the functionality and the price levels. This market is becoming more mass market, and as you would expect, prices have come down substantially from the early days of custom installation.

    2004 Distributed Audio Award Winners

    All-Inclusive Distributed Audio System: $1,000 or more per room
    Xantech, MRC88

    All-Inclusive Distributed Audio System: Less than $1,000 per room
    Sonance, Sonance DAB1

    Amplifiers, Controllers & Receivers
    Audio Design Associates, Inc. (ada), HTR-2400 Home & Theater A/V Receiver

    Connectivity Products
    On-Q Home, Entertainment Connection Center

    In-Ceiling Speakers: $1,000 or more per pair
    Boston Acoustics, DSi495

    Installation Aids and Accessories
    Sencore Electronics, SP295C SoundPro Audio Analyzer

    In-Wall Speakers: $1,000 or more per pair
    Polk Audio, LC265i with ENC265

    In-Wall Speakers: Less than $1,000 per pair
    Boston Acoustics, DSi460T2

    In-Wall/In-Ceiling Subwoofers less than $1,000
    Boston Acoustics, VRiSub85

    Multiroom Audio Media Servers
    Meda Systems, Inc., Bravo(TM) Digital Media Server

    Multiroom Audio Source Components
    Bose Corporation, Bose(R) Lifestyle(R) BUILT-INvisible(R) AV-18 Media Center

    On-Wall Speakers: $1,000 or more per pair
    Boston Acoustics, P400

    On-Wall Speakers: Less than $1,000 per pair
    Klipsch Audio Technologies, Klipsch Reference Series RVX-42

    Outdoor Speakers
    Niles Audio Corporation, RS8Si Weatherproof Rock Loudspeaker

    Racks, Mounts & Enclosures
    Middle Atlantic Products, ASR Adjustable Shelving Rack

    User Interfaces/Keypads
    Remote Technologies Inc (RTI), T2+ Universal System Controller

    Wireless/No-New-Wires Transmission Media/Technology
    Philips Consumer Electronics, Philips SL400i

    Best Overall Distributed Audio Awards Product
    Meda Systems, Inc., Bravo(TM) Digital Media Server

  • Entertainment Now: UK 3’s Deal with APTN

    3, the first 3G network in the UK, are further enhancing their content offering by announcing a deal with Associated Press Television News (APTN). APTN will provide the video show, “Entertainment Now” that will be released twice a week and cover ‘celebrity entertainment’. In their words, it will be “quirky and irreverent, poking fun at the rich and famous, and of course, the infamous.”

    3 customers have two ways to pay for the content. At 50p per clip or they can watch as much video as they like by paying £5 per month for the “video value” add-on.

    We spoke to Deanna Gullery, APTN’s New Product Marketing Manager about the deal. They currently sell a 24 minute version of Entertainment NOW (is it just us or is the capitalisation unnecessary?) that goes to air with a number of broadcasters in various countries on a weekly basis.

    The 3 version will be a cut down version, primarily featuring celebrity interviews, calling on AP’s strong access to the stars. It will be edited in-house down to between 2 and 4 minutes, voiced over and releases on Tuesday and Thursday.

    We think the 3 deal is an interesting example of a content creation company making the most of their assets – “Sweating your assets” as we believe the 80’s phrase for was. AP are all over the world (80 bureaux in 67 countries) shooting this type of material for ‘traditional’ media outlets anyway. Why not make the most of it and edit it together in to custom pieces? We’re strong believers in this type of approach.

    We don’t think this is the kind of content that will drive people to join the 3 services, it’s more about maximising Average Revenue Per User (ARPU, in trade terms). Their current ARPU taking the first 7 months of this year is £43.22 per customer, per month.

    Three
    Associated Press Television News

  • Internet:Act II

    While Digiworld’s major players have been forced to focus on recovery, the initial excitement stirred up by the internet has not died down. On the contrary, it continues to engender unexpected and often destabilising initiatives, raising important questions over future developments. This is the opening of “Act II” in which players will have to find fresh avenues of growth, innovate, form new partnerships and prove their staying power in the competitive Internet arena. To open the International Conference, dedicated to Internet Act II, IDATE and its partners are organising workshops and specialised seminars:

    • 3rd International Video Game Forum
    • Broadband for all
    • Corporate Telecom Services
    • European enlargement and ICTs

    Montpellier, France http://www.idate.org/

  • DAB Gets Big pre-Xmas Push from BBC

    BBC DAB Xmas campaignThe BBC will be launching a multi-format campaign starting at the end of November to promote Digital Radio in the run up to Xmas. It’s being previewed in London today.

    Running across TV, radio, online (including the BBC home page) and posters, it will be a comprehensive campaign. The TV element, which airs this Saturday, will use animations of a computer-generated world to relate its message, marketing news site mad.co.uk reveals (reg. req.). In the piece, Robert Senior, the managing partner from the company that created the campaign, Fallon, goes on about a “wider spectrum of emotions” – but that’s quotes from marketing publications for you.

    An industry insider tells us that this year the BBC will highlight what makes DAB special, rather than just talking about their additional channels, as happened last year. DAB features such as digital-quality sound and scrolling text should be highlighted.

    This is a big year for DAB in the UK. Each of the major electronics retailers will be featuring DAB equipment prominently in their advertising. This year DAB receivers have also been in all of the glossy magazine with them falling over themselves to feature DAB in their publications. Last year they wouldn’t touch it.

    The BBC’s isn’t the only campaign. The Digital Radio Development Bureau (DRDB) will be running a campaign over 257 commercial radio stations around the UK telling all and sundry that receivers can be bought for ‘under £50’.

    The desired effect of all of this should be two fold. To give a boost to the sale of DAB receivers, at a time people are starting to think about presents for their friends and relatives; as well re-reminding the UK public that there is a wider variety of radio content available over DAB than on the analogue channels.

    We learnt from the DRDB that 801,000 DAB units had been sold in the UK in the year to September. Their sales target for this year? “We’re aiming for 1 to 1.2m units before the end of the year” Ian Dickens, Chief Exec of DRDB told us.

    With over 100 models now available in many different forms factors, they’ve got a strong chance of hitting it.

  • VCR Sales in UK Halted by Dixons

    The largest electronics retailer in the UK, Dixons, has announced that it’s to stop selling Video cassette recorders. They say as sales of DVD Players are so strong, they outsell VCR’s 40:1, that there is no demand for VCR’s anymore. Dixons sales peak for VHS (Video Home System) was in 1993.

    All of this is, of course, great for Dixons in the build up to xmas – they’re splashed across all of the papers and other media today, supplementing their already considerable media advertising spend.

    You would probably have thought that we’d be jumping with joy at this knockout move for an old, and let’s face it, pretty unwieldy format. Well quite a lot of time has passed since we at the Digital Lifestyles offices originally discarded our own VHS machines, and that gives us a chance to reflect on this news, rather than react.

    In that 18-24 months the entertainment industry (read TV and film in this case) has had time to plan it’s future and their approach to visual media in the digital future has become firmer.

    Today’s news must make those media companies very pleased. It effectively starts the countdown to the end of access to the large collections of video content people have built up over the last 26 years on VHS, both self-recorded TV programming and pre-recorded.

    It also closes one of those pesky ‘analog holes’ that often get mentioned by the media companies, in debates over the future of digitisation of media.

    Dixons? They’ll also have the opportunity to sell all of their punters a whole range of new equipment when high-density disc formats (blu-ray, etc) arrive. Of course there’s a bigger profit margin in a £150 DVD recorder that a £40 VCR.

    We also assume this will start to open the market for high-end VHS players as people come to realise some of their old content isn’t yet available on new formats. Will there be VHS buffs, like there are analogue HiFi buffs?

  • European Broadband Pricing Drops 23% in 2004

    A new report, the European Broadband Pricing Report, researched by Quantum Web and distributed by BroadGroup, shows European broadband pricing (of speeds between 0.5Mbps and 2Mbps) dropping since January 2004 by around 23%. The numbers of supplier and packages available have increased considerably over this period with 0.5Mbps tariffs availability increasing 75%.

    455 tariffs offered by 109 operators over 36 European countries were examined over the first three quarters of this year (2004).

    At the higher speeds, 4Mbps and 8Mbps the price reductions have been less dramatic. Clearly at this premium-end of the market there is little competition and in their words “[leaves] more room for price elasticity for content providers.”

    It’s interesting to note that non-DSL products make up 20% of the European market.
    BroadGroup European Broadband Pricing Q3 2004 Graph
    We find it surprising that, given the intense competition at the 0.5Mbps level, pricing hasn’t come down more than at 1 and 2Mbps levels. We wonder if this is due to the majority of connections being provided by wholesalers to markets, such as BT Wholesale in the UK. Without competition at this level, these wholesalers (normally the incumbent telco) don’t have much impetus to lower their prices dramatically, just gradually, to keep their telecoms regulator from getting angry.

    When we asked the BroadGroup about pricing across the surveyed countries they said there was a considerable difference. Generally, the previous Eastern European counties have lower pricing, as do many of the Scandinavian countries. To us this points towards major fibre optic network runs equalling lower prices, as most of the former Eastern Europe frog leapt mainland Europe by replacing their antiquated phone system with fibre. Scandinavia is well known for their wisdom in laying copious amount of fibre. We suggest that those trying to make their countries competitive both in terms of the obvious – IT, and the less obvious – digital entertainment networks, pay attention.

    BroadGroup – Broadband Pricing in Europe Q3 2004

  • Sky Active re-launches with Significant Upgrade

    The Sky Active service, which has been around for the last five years, has this week had a considerable redesign. Originally a text-based approach, the new version is significantly richer and takes is into a magazine style. We spoke to Sky to get the details.

    Sky Active Front pageThe opening page (example right) has a video background running on the right and a small number of highlighted options on the left hand side. The layout and links on this page change throughout the day, to match the audience that they think will be looking at it. Currently changing twice it will feature items like horoscopes and lifestyles links during the day and betting and dating in the evening.

    Sky Active Content pageAnother way to access the content is via a mosaic layout (example right). This shows a checkerboard of 16 video pieces running on loops. As the viewer uses their remote control to navigate between the videos, bring it in to focus, the audio channel associated with that video loop plays. This short-form video programming is designed to draw people in to the interactive content that lies behind and on pressing the Select key takes them to the content.

    It’s clear that Sky is putting more resources (read money) into this service. There is a full time editorial team of ten people working on it on a day-to-day basis and with the video running, considerably more satellite bandwidth is required to run the video. Sixty people across the organisation have been involved with the re-launching of the site – twenty of them within the design team.

    Sky Active is creating much of the content in-house, as well as commissioning other pieces externally. The content that is being created is unique to Sky Active.

    Clearly Sky is making money from their interactive service, and want to make sure that they are ahead of the game (pun intended) as other rival services are launched.

    Sky Active

  • Ofcom to BT: Equivalence or else

    After a long period of deliberation Ofcom, the UK regulator, has come to its conclusion on the Strategic Review of Telecommunications Phase 2 (SRT 2 to those in the know). It won’t be forcing the split of BT Retail and BT Wholesale.

    For a very long time, most companies in the UK telecoms market have bemoaned BT Retail getting a better deal from BT Wholesale (they own the network) than they were able to achieve. In the competitor’s eyes, the market hasn’t been balanced. Many felt that BT has been expert in ‘playing’ the regulator, especially Ofcom’s previous rendition, OfTel – only making changes just before they were forced.

    In SRT 2 Ofcom investigated three options, Full deregulation; Enterprise Act investigation; BT to deliver real equality of access. They’ve come down on the side of the latter, in their words

    “Ofcom calls on BT to provide prompt and clear proposals which will achieve these behavioural changes and bring about the level of confidence required.”

    and if equality isn’t achieved, they threaten to use the second; an investigation into the market under the Enterprise Act 2002, with the potential for a subsequent referral to the Competition Commission.

    In theory, when equal access to the network is given, the need for Local Loop Unbundling (LLU) to provide competing broadband services will be reduced.

    When we spoke to Video Networks, the company behind the London-based IP VOD-services, they said the news today would “not impact their LLU plans”. EasyNet, a significant unbundler, didn’t get back to us before we went to press.

    The SRT 2 is now open for public consultation until 3 February 2005.

    It would appear that the threats from Christopher Bland, Chair of BT, in the Telegraph at the weekend that “No BT would equal No Broadband” were unnecessary.
    Update: OfcomWatch comment