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Mobile entertainment ― Interview with Rann Smorodinsky and Steffen Leistner from the Mobile Entertainment Forum
Market forecasters have predicted a boom in mobile entertainment. Eurescom mess@ge asked two experts who should know, if this will come true and what the challenges and opportunities are. Dr. Rann Smorodinsky is chairman and co-founder of the Mobile Entertainment Forum (MEF) and co-founder of Cash-U Mobile Technologies. Dr. Steffen Leistner is vice president at Booz Allen Hamilton and head of the MEF's Commercial Task Force. What is the market size and growth potential of mobile entertainment? Smorodinsky: Mobile entertainment is a huge market. Depending on which market forecast you consult, the estimates are in the range of 5 billion to 11 billion dollars until 2005-2007. Since I entered this business in early 2000, the market has grown by 10,000 percent up to now. Entertainment has evolved from TV, the computer and Internet to mobile handsets. Mobile entertainment has the advantage that it is very pervasive. The pervasive success of ringtones has obviously contributed to the recent excitement. The latest report suggests that the downloadable ringtone market will double to US$4 billion by 2008. What are the main drivers of mobile entertainment? Smorodinsky: The main drivers are the amazing availability and connectivity of mobile devices. Everyone has a mobile phone, and people have it with them and are connected 60 to 70 percent of the daytime. With your mobile handset you are part of one big family. You can use it for multiplayer games like ‘Dungeons and Dragons’, but also for offline games like ‘Tetris’. You can then post your highest ‘Tetris’ score via mobile. Chatting alongside the game and meeting others is also an important factor. Which factors could impede the growth of mobile entertainment? Smorodinsky: A main issue here is that two completely different industries, the network operator and the media industry, have to co-operate. Entertainment people and operators sometimes look down on each other and often don’t speak the same language. There is a wide cultural gap. If a game producer talks to a telecoms engineer, they might have a completely different notion of what, for example, ‘publishing’ means. The Mobile Entertainment Forum tries to bridge this gap between the two cultures. We have defined a common terminology, which is documented in a glossary of mobile entertainment terms. There are also technological obstacles: Digital Rights Management, download compatibility, super-distribution protections, lack of standardisation, and different colour schemes. For one mobile application, a developer may have to design 20 different versions. What is the relationship between fixed-line and mobile entertainment? Smorodinsky: It is incorrect to perceive them as substitutes. I see a positive correlation between them. Leistner: The technology discussion, mainly driven by operators or technology providers over the last couple of years, led to an overall confusion of end customers. Operators felt the customer reluctance to deal with underlying technologies very well and are shifting their message away from putting technologies first to putting application and the consumer experience first. This also means that in the future it will become more and more irrelevant which technology is behind your application: fixed like ADSL or fibre, mobile like GPRS or UMTS, semi mobile like Wi-Fi. New devices, different pricing models ― this all leads to a scenario to best meet the customer need and create a great experience or just fun. How will mobile entertainment develop in comparison to other forms of entertainment, like home entertainment? Leistner: Clearly nobody will carry a 50-inch flat screen with a surround system to get the home entertainment experience at any place, even if the mobile technology would provide this option. Main drivers behind this new area of mobile entertainment are increased mobility of people and the emergence of applications and devices as the technology becomes more and more standard and widely available. So it is a new world and still in its infancy compared to, for example, home entertainment and therefore offering a much greater growth potential. Who in the value chain will be the winner(s) in the mobile entertainment market? Leistner: We developed within the MEF commercial task force a comprehensive value chain, identified most critical questions and developed most likely scenarios. Currently, it is hard to predict the one specific winner. We don’t believe that there will be only one single winner because of the overall complexity to make mobile entertainment work: content companies, application developers, technology providers, device manufactures and operators have to cooperate to make it happen. The main driving forces are currently large mobile operators, leading device manufacturers, and application developers. How frequently do you use yourself mobile devices for entertainment? Smorodinsky: I don’t use mobile devices for entertainment myself, but I am a big believer in mobile entertainment. Sober analysis has shown me that this is a big business. I love to watch my three kids play; they are four to nine years old. They like to play Java games on their mobile handsets. They even play on their mobile at home, though they could use the computer. Research shows that users in general play on their mobile phones most of the time from 5 to 7 p.m., when most of them are at home. The interview was conducted by Milon Gupta. Further information is available at www.mobileentertainmentforum.orgPlease send us your comments on this article. |