MBS09 Digital Entertainment Services jenseits von “Pay per Download” - Praxisbeispiele & Ideen Sven Visscher (Vice President Product Management, arvato mobile, Hamburg)

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Digital Entertainment Services Digital Entertainment Services Digital Entertainment Services Digital Entertainment Services jenseits von “Pay per Download”jenseits von “Pay per Download”jenseits von “Pay per Download”jenseits von “Pay per Download”

Praxisbeispiele & Ideen

Media Symposium 2009Stuttgart, 09. Juli 2009

-2- © arvato mobile 2009

arvato mobile

n Founded 1999, more than 250 employees in 12 locations

n arvato mobile is owned by AMME, a digital media investment company owned by Mondia and the Abu Dhabi Group, one of the Middle East's largest investment holding companies

n Enables Digital Entertainment Services by offering “white label” solutions


Value Chain


Market: Digital Content Business (PWC)

Music Games Video

2008

2012

2008 2012 Growth

Music 5,83 10,25 75,75 %

Games 7,25 13,47 85,67 %

Video 6,7* 18,2* 171,6 %*

Total 19,79 41,92 111,86 %

Global Mobile Entertainment

2008 2012 Growth

Music 3,52 8,58 143,51 %

Games 8,06 14,36 78,13%

Video 3,89 10,84 178,43

Total 23,9 47,2 97,49

Global Online Entertainment

Source: PWC Global Entertainment and Media Outlook 2008-2012; *Portio Research / in Billion USD

Music Games Video

2008

2012

Source: PWC Global Entertainment and Media Outlook 2008-2012 / in Billion USD

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Market: Digital Music Downloads (Bitkom)

… Which business model will generate revenues in the next 5 years? Paid content, ad funded services, events or …..


bigger display | more memory | | gps | camera | touch screen |

New kinds of digital content are the rising stars of tomorrow

The Changing Market

flexible business models

Player

Business modelDownload to own

DRM protected

…………

Devices and Usability

Content

OEM‘s, labels and other players enterthe market for digital content aggressively


What enables your business model?

ContentContentContentContent

DRM (optional)DRM (optional)DRM (optional)DRM (optional)

Usage LicenseUsage LicenseUsage LicenseUsage License

ChannelChannelChannelChannel

DeliveryDeliveryDeliveryDelivery

ParameterParameterParameterParameter

Business ModelBusiness ModelBusiness ModelBusiness Model-8- © arvato mobile 2009

Apple: iTunes

n Strong –well known- brand, great usability, cross content, fully integrated

n Proprietary (mobile = only iPhone/iPod Touch!), no subscription service (until now)

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Nokia: OVI

n Cross content

n Proprietary (only NOKIA), services are not integrated completely


arvato mobile: GETMO

n Offers all kinds of digital content; online and mobile

n Offers advertising based as well as payment based business models

n For music it is a mixture of „DTO“ & „Tethered Subscription“


Access Provider (ISPs, MNOs…)Access Provider (ISPs, MNOs…)

Loyalty Program Provider

Loyalty Program ProviderMediaMedia BrandsBrands

Hardware ManufacturerHardware

Manufacturer

get new customers

brand

corporate imagekeep customers

earn money :-)

extend reach, get traffic

sell products …………

all you can eat /

subscriptionsvirtual currencies content preloaded /

bundled

Digital Entertainment…”a means to an end”


Acquisition of new customers…in a long term view?

n Does physical bonus ensure customers loyalty in the long term?

n Can you stay in contact with the customer by offering “prize reduced coffee

machines”?

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Telefonica Music Flatrate

n Since May 2008 Telefonica offers the music flat rate in combination with a DSL contract

n Customers can download an unlimited amount of music tracks, based on gnab 2.0

n Service is temporary and ends after 12 month

n Music Flat Extension is possible in addition to the renewed DSL contract or by paying a

monthly fee

n Success: increased base of DSL customers, minimized churn rate (after 12 month)

700


TDC Danmark

n In 2008, TDC launched PLAY, a service that provides DSL, cable and mobile customers with

unlimited music download – as part of their monthly subscription

n TDC reduces churn by 50 percent by giving away music for free!

n 70 million downloads in one year


Loyalty Programs

n Will the required minimum amount of points are convince the customer to enter the program, especially if the availability of prizes are limited?(beside the fact, unused points are part of the business model)


Voucher

n Credit Voucher (e.g. 10 €) à free choice, limited value

n Article Voucher à for specific article, artists etc.

n Catalog Voucher à for the full or limited catalogue

n Subscription Voucher à time based usage of the service or content

à Measurement of campaigns is possible using individual vouchers

4free4free4free4free100 Tracks 100 Tracks 100 Tracks 100 Tracks „hy13kaldp192“

EndlessHipHop

„hy13kaldp192“

Source:

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CokeFridge

Source:


getmo.ae


getmo.ae

n Scratch-cards are ad-funded or can be purchased as well


Samsung mobile & GETMO.ae

n Scratch-card bundled with specific SAMSUNG phones in the targeted region

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Content Preloaded or Bundled

ExampleExampleExampleExample::::„COLDPLAY „COLDPLAY „COLDPLAY „COLDPLAY insideinsideinsideinside

Get the latest album of Coldplay preinstalled on XYZ“

Preloaded Bundled

how to offer such complex services easily?


Shop API

Backend moduls

Shop APIAccess to single moduls (flexible version) / Access to defined modul bundles

(comfort version)

PaymentPayment

VoucherFactoring

MetadataMetadata

OnlineOffline

InformationInformation

MSISDNHandset

AdvertismentAdvertisment

ad flexAd Network

DeliveryDelivery

PC

Dual Delivery

Mobile

UserUser

LicenseWallet

Sub-scription

User Data


Scenarios to delivery content services…

§Complete shop solution (content & backend & frontend)

Intermedia Shop

FrontendServiceFrontendService

ContentServiceContentService

OperationsBackendServiceBackendService

§XML export of structure & meta data (opt. binaries)

§Partner integrates into his backend

§Partner integrates into his frontend


Operations

Content Gateway

§API to backend services incl. content delivery

§Partner integrates into his frontend

Shop API


Operations

BackendServiceBackendService

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Thank you!

Sven VisscherSven VisscherSven VisscherSven VisscherVP Product & Solution Management

arvato mobile GmbHKehrwieder 820457 HamburgGermany

[email protected] +49 40 38617 616cell +49 172 294 40 01