Business Models: Unit Based Purchase of Songs and Subscription-Based Access Provide the Competitive Edge in the Mobile Music Market.DUBLIN, Ireland -- Research and Markets (http://www.researchandmarkets.com/reports/c27674 ) has announced the addition of Mobile Music - Business Models to Increase Data ARPUs to their offering. We have identified two business models for accessing music downloads, based on the Korean and Japanese experiences. The Korean business model is a subscription-based access to music, and the Japanese business model is more of a traditional, unit-based purchase of songs. Both models have had a positive impact on carrier performance. In Japan, KDDI's 3G mobile data ARPU (Average Revenue Per User) A calculation often used to determine the overall value of an application. It is also used to rate particular customers, especially in the wireless space, by comparing someone's account to the overall average. vaulted ahead of the competition's 3G data ARPU after the launch of mobile music. In Korea, SK Telekom's mobile data ARPU is 10 percentage points higher than that of its closest competitors. This report provides an in-depth analysis of these two mobile music business models, their impact on mobile operator performance and whether they can ultimately be replicated elsewhere. We find that the key catalysts to successful mobile music models will be 3G+ wireless technologies, flat rate bandwidth pricing and extensive libraries. The best practices highlighted in this report also show that mobile music will be a key catalyst application in the roll-out of fixed mobile convergent services. Target Audience Mobile Operators: Compare business models and identify best practices, gain insight into the mobile music value chain and develop strategies to pursue this market opportunity Music Industry: Quantify the licensing opportunity for mobile music, develop new marketing strategies and prevent malicious Peer-to-Peer file sharing Copying files from one computer to another. See peer-to-peer network, file sharing protocol and file and printer sharing. Hardware Vendors: Determine how to satisfy operators, music providers and consumers with devices that address the concerns of all parties Music Publishers: Identify opportunities to enter the mobile market and increase subscribers and downloads Topics Covered Executive Summary Section 1: Single Entrees and Buffets: Business Models for Full-Track Downloads 1.1 KDDI's "Chaku-Uta Full": The Traditional Music Model Goes Mobile Market Impact: Chaku-Uta Carries KDDI's 3G Portfolio Lessons: The Music Industry's Favorite Model 1.2 SK Telecom's "MelOn": Merging Convergence and Innovative Payment Models Market Impact: Redefining Korea's Music Landscape Lesson: Good for the Consumer, But Not as Attractive for Content Providers Section 2: Charting the Mobile Music Value Chain 2.1 Understanding Stakeholder stakeholder n. a person having in his/her possession (holding) money or property in which he/she has no interest, right or title, awaiting the outcome of a dispute between two or more claimants to the money or property. Value Propositions 2.2 Making the Technology Work Data Transfer Rates File Compression See data compression. (algorithm) file compression - The compression of data in a file, usually to reduce storage requirements. "Form Follows Function" -- Device-Specific Requirements Digital Rights Management Section 3: Replicating the Japanese and Korean Models: Edging Towards the Subscription-Based Model 3.1 Can Over There Be Over Here? 3.2 Subscriptions the Long-Term Winner? List of Exhibits Exhibit 1: Sample FTD FTD Financial Times Deutschland (German sister newspaper of the Financial Times) FTD Frontotemporal Dementia FTD Fitted FTD Federal Tax Deposit FTD Flight Training Device FTD Fastest Time of the Day Pricing and Download Libraries Exhibit 2: Chaku-Uta Full Number of Downloads Through June 2005 Exhibit 3: Japan Market Share of 3G Exhibit 4: Mobile Music Impact: Comparative Evolution of 3G Mobile Data ARPU Exhibit 5: Evolution of MelOn Subscriber Base Exhibit 6: Mobile Data ARPU Differential: SK Telecom vs. Competition Exhibit 7: The Various Requirements of the Mobile Music Value Chain Exhibit 8: Approximate Download Times (Minutes) for an MP3 Music File Exhibit 9: Sample Mobile Music Packages Companies Mentioned Apple, Netflix, Blockbuster, NTT DoCoMo (NTT Mobile Communications Network, Inc., Japan) Founded in 1991, NTT DoCoMo is a spinoff of Japan's NTT (Nippon Telegraph and Telephone Corporation) which provides wireless services, including cellular, paging, satellite and maritime and in-flight telephone services. , BMG BMG Bundesministerium für Gesundheit (Germand: Federal Ministry for Health) BMG Be My Girl BMG Blue Man Group BMG Bertelsmann Music Group BMG Be My Guest BMG Browning Machine Gun BMG Bulk Metallic Glass , O2 UK, Cingular, Orange UK, EMI (ElectroMagnetic Interference) An electrical disturbance in a system due to natural phenomena, low-frequency waves from electromechanical devices or high-frequency waves (RFI) from chips and other electronic devices. Allowable limits are governed by the FCC. , RealNetworks, Intel, SFR SFR Swiss Franc (national currency) SFR Société Française du Radiotéléphone (French cellular provider) SFR Single Family Residence SFR Single Family Residence (real estate) , KDDI, SK Telecom, KT Freetel, Sony, LG Telecom, T-Mobile, Microsoft, Vodafone, Motorola, Warner Music, Napster, YBM YBM Yellow Bellied Marmot (Marmota flaviventris) Seoul For more information visit http://www.researchandmarkets.com/reports/c27674 |
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