Tag Archives: new media

The Future of Mobile – Without Phone Numbers

Sol Trujillo

Sol Trujillo

The most striking exchange at the recent Mobile World Congress in Barcelona was the give and take of jabs between Sol Trujillo , CEO of Telestra and Josh Silverman, CEO of Skype.

Sol represents the mobile business of the present and the past.   Josh is the future.

Josh Silverman

Josh Silverman

The rate of innovation and fundamental change in the mobile industry is out pacing the oligopoly based businesses ability to react or perhaps even acknowledge what is happening on multiple levels.

The basic argument was about whether that phones with Skype capability would grow the market with low cost, data application, voice calling services.

Sol Trujillo was less than enthusiastic about voice as a data service and as much said that he would use his monopolistic power to prevent that in Australia. (Those are my words, not his)

This is the classic industry transition that has been taught in every business school of merit. The existing entrenched companies reaction to a shifting structure is predictable, since their company’s enterprise value, their careers and their personal fortunes have been created with an old, but soon to be outdated industry structure.

The interesting aspect of the interchange in Barcelona was that the market shift is even greater than either of them hyped (Skype) or condemned (Telestra). This is much bigger than arguing whether making voice calls is a voice service (Mobile Carrier) or a data service (Skype).

There are five technologies and business models coming into play that will change the way the world utilizes mobile phones in the near future. These colluding forces are: Mobile Application Stores, Powerful Smartphone Devices, Advanced Mobile Data Networks, Social Networks, and Voice Over IP.

Here is my prediction for the mobile environment of 2015.

facebook_phoneYou purchase your sleek, touch screen, mobile communications device in an electronic retail store (or online). It is likely that some devices will have applications pre-loaded. Any subsidy or rebate that you receive for your device will come from the application providers who want you to use their specific services, not from the mobile data provider as it is today.

Once you have your mobile communicator you will then purchase data access, similar to the way you subscribe to your home or business Internet Service Provider. Your data provider might provide full roaming services (VZW, AT&T, T-Mobile), and/or fixed WiFi access. Your device will work with your home or business WiFi network in a seamless manner.

With your device and data access you can shop over the mobile IP network to download applications for you mobile communicator. Two of the must have applications will be your social network application(s) and your VOIP application.

It would make logical business and technical sense for the VOIP software to come bundled with your social networking package.

mobile-skypeYou will be able to aggregate your “friends” from several Social Networks and load them on your phone. Your VOIP provider (Skype) will be able to place calls to your friends directly. The use of phone numbers will diminish and be used for the 5% of calls you make to people outside of your friends group. Businesses will advertise to become your social network “friend”, so that you can communicate and call them with ease.

This model is not that far off from today’s reality. The Iphone application has several available Facebook applications and Skype applications, and can switch between mobile broadband service and WiFi.

The issue is that this new model strips the mobile carriers of their service model and relegates them to wireless roaming Data IP providers. You can understand why an executive of a Wireless Service Provider would take an aggressive stance against this thinking. The problem is that he is on the wrong side of the technology curve. This will happen. The issue is how long it will be stalled by politics. By politics I mean both company politics and governmental politics.

The fact is that it takes billions of dollars and Euros to license the spectrum and build out mobile data networks. The service model that these investments were predicated upon is quickly becoming invalid, and must evolve and is replaced to reflect the coming reality. There will not be a “free lunch” for the Facebook’s and Skype’s of the world to reap (or rape?) the investment of the world’s mobile carriers.

Rather then ignore, deny or fight an inevitable technology tsunami, the carriers would be better served by creating a business model that fairly compensates then for their considerable investments going forward. The new application providers such as Skype and Facebook will need to acknowledge the value of these mobile networks and work on creating the proper framework for all to move forward.

My follow-up article to this topic is here

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Filed under advertising, blackberry, blog storming, facebook, mobile, Mobile Application Stores, skype, smart phone, Smartphone, Social Media, social networking, Web2.0, wifi, wireless

Traditional Media Goes to School on New Media

The traditional content companies (NBC, CBS, FOX, ABC, etc) have used the research, development and “trial and error” investments of many new media, web and mobile oriented companies to learn what networks4works in digital content, commerce and advertising.   They have transitioned from fighting the term “new media”, to adapting it, and in many cases becoming dominate players.

I was a witness to the first stages of this schooling in the early days of the dot.com explosion.

jay

Jay Chiat

In April of 2000, I had just joined the quintessential Silicon Alley content company, ScreamingMedia. Our well-funded company, had h the superstar and Ad icon Jay Chiat as Chairmen and a hard driving entrepreneur founder, Al Ellman.    Jay Chiat was famous for such ads as the 1984 Apple Superbowl commecial and the still-going  Energizer bunny.  

The company  hosted  its own new media content conference at the Chelsea Piers.   This was called the “Malcontent” conference.   The conference was organized to be a debate of new (web oriented) vs. old (TV, Radio, Newspaper) media.

alan_ellman2

ScreamingMedia Founder, Al Ellman

We had luminaries from both sides of the assumed divide, including Dan Rather.   As a new executive at ScreamingMedia, I gave the case for mobile and its role in this new media landscape.   The one thing I was sure of, any media or content on a phone would have to be “new media”.

The value of ScreamingMedia was grounded in content syndication.   At the timeit  was technically and legally difficult to syndicate content on the Web.   ScreamingMedia (aka Pinnacor) was eventually acquired for about $150M.

Of course, this was pre-RSS days.  By today’s standards the media giant of syndication would certainly look old.

The debate (new vs. traditional) lasted well beyond this 3-hour event.  The crash of the dot.com industry in 2000-2001 took this off the techno blogs and webmags for a while, only to emerge again and again throughout the last 8 years.

Initially “new media” – which is loosely defined as anything related to the Internet started to make inroads against old media in digital ad spending.  Viewership, commerce and piracy flourished in Internet land.  My observation was the traditional media sources were slow and ineffectual in their digital  efforts.  

This had had the appearance of the classic innovators dilemma.  Traditional media profited from their “traditional” revenue sources.  Any admission that the model was changing threatened the status quo, or more likely the careers of those who made their fortunes in the pre-Internet era.

For the media giants, innovation was largely a content and storyline effort. Distribution was the means to theater tickets (movies), CD sales (music), and Ad dollars (TV and radio).  Innovation in distribution was in cable television, DVDs, and some simple web sites. The new media models were the domain of those who wished to destroy this traditional model.

Over the past couple of years I have met with many in the media industry on this topic.  I have to admit trad1that I have been perplexed that it took them so long to come around and really capitalize on the new distribution models.  My advice back then, and now, is that the big media companies still have the best, most wanted content.

The strategies and techniques that were pioneered by the new media innovators, such as ScreamingMedia have been adapted and extended by the general media industry.

With all due respect to a dancing baby on YouTube, a Tina Fey SNL skit on Sarah Palin will get more viewers, on the NBC website, then watched the actual Katie Couric interview.

All the TV networks have embraced online video of their shows, big time.  The online video versions of their lineups are ad supported and provide a much better experience than the pirated versions that float around the Web.  By embracing the model, they do it better than the previous amateur attempts by others.

So now what was “old” is “new”, and what was “new media”, is just another distribution channel for creative content, most of which comes from the media giants, with a secondary node to the entire world of user generated content.

We have now come full circle.  Good media companies observed what worked in the digital domain.  They capitalized on the considerable investment made in companies that originally were designed to compete with them.  In today’s market some of the most compelling digital content and applications are coming from the “traditional” media outlets.

Good Content is Good Content- From the days when the distribution model was cave drawings, to biblical stories, to the art and literature of the Renaissance, Shakespeare, Novels, Radio, TV, Movies, Internet and yes, mobile.

screamingmediavig

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Filed under advertising, CEO, Content, location based services, media, mobile, new media, syndication

Supertones!

Supertones are coming to a phone near you!

The acceleration of mobile media convergence, as evidenced by the recently launched Dada Entertainment (JV of Dada USA and Sony BMG), Jamster and others should give the growth of mobile media a well-deserved shot in the arm. I predict the next agent of growth with be …

SUPERTONES

What is a Supertone? It is a media product that combines a ringtone, an album wallpaper, a music video and perhaps a full mp3 track, all bundled in a single MMS-like download. This product will be hot!

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Filed under mobile