Today, Frank Dickson from iSuppli will be visiting here. Frank is Principal Analyst, Multimedia Content Services. He covers markets for digital video and home entertainment, with focus areas including IPTV, video on demand, home networking and broadband video.
Frank has over a decade of industry and market research experience. In his most recent prior role, he was Senior Director of In-Stat’s Convergence Groups and responsible for the firm’s multimedia and convergence research. His coverage included multimedia services, content, equipment, infrastructure, and residential connectivity, and semiconductors. Frank has a Masters Degree with Distinction from The American Graduate School of International Management and an MBA from Arizona State University. He also holds a Bachelors of Science Cum Laude Degree in Operations/Production Management from Arizona State University.
Getting to Know Frank
Hi Frank. Thank you for visiting Xellular Identity :) How are you?
Life is good. Thanks for asking.
What got you interested in mobile?
Greed. Whoops. Did I cross the line from honesty to transparency?
Wireless subscribers are measured in “B’s” as in billions. hat type of market size means that a whole lot of people have a lot at stake and are willing to buy research.
What takes up your time other than mobile?
I live in Arizona with 360 days a year of sun shine. Time for me is spent in sporting activities or watching my son play baseball. It is not a life as exciting as 007, but I like it all the same.
The Market of Mobile Content
How big is the market for mobile content and entertainment?
REALLY BIG! Try almost US$20 billion worth of big. Music alone with its multiple usage applications will almost reach US$9 billion.
Which important trends are shaping the mobile content market?
- Growth in ringtones & Ringtunes is slowing. Asia and Europe are maturing, while heady growth rates in North America moderate. Continued growth in mature markets will migrate to product extensions of ringtones and development of full-track download and streaming music services which will take time to develop. The growth opportunities for digital music across all categories are shifting to the emerging mobile markets: Latin America, Eastern Europe, Middle East, Africa and developing Asia.
- Mobile gaming growth is slowing significantly, particularly in Asia. However, North America remains a growth market. Furthermore, game quality is improving with new advanced 3D graphics technology in handsets and multi-player gaming capabilities. The opportunity to expand the market relies on broader awareness for the core segment of casual mobile games, and development of new gaming segments. Developers and operators need to focus on leveraging the unique characteristics of mobile gaming: mobility, connectivity and location.
How significant contributor to the overall revenue is the mobile content expected to be in the future?
How significant? It seems to be the battlefield will be centered on content. The markets for mobile premium content, including music, video and gaming continue to drive operator data revenue. Messaging continues to be a strong market as well, with dramatic growth in North America.
Operators are looking to mobile content and other value-added services for 1) Revenue growth and 2) churn reduction. As the operators are the primary mobile distribution channel, content providers, application providers and technology providers need to focus on these two objectives.
Voice ARPU declines accelerated in the quarter for most of our profiled operators. Across the 20 key operators, Q1 2007 aggregate voice ARPU declined 6% sequentially compared to Q4 2006. Voice ARPU declines were mixed among operators on a worldwide basis with some seeing slight increases while others were down. Meanwhile mobile data ARPU increased sequentially by 1%. Overall, most of the global operators saw Data ARPU growth. Data ARPU is particularly strong among North American operators, where both messaging revenue and mobile multimedia content are seeing strong growth. Across all the operators, nearly 20% of revenue is now associated with data. Three of our tracked operators get over 30% of revenue from data: SK Telecom, NTT Docomo and O2. Aggregate subscriber growth slowed to 3% sequentially in Q1 2007, down from sequential growth of 6% in Q4 2006.
Thank you Frank! :) Don't forget to join us next Sunday for the second part of this interview.