I came across a great article on App stores and why they might fail...
The insights into app stores and carrier stores are spot-on and quite similar to the views expressed in this blog.
I particularly like the fundamental requirements for a successful mobile content business-
1. Discovery
2. Billing
3. Positive ROI for publishers
You can read more here
Showing posts with label carriers. Show all posts
Showing posts with label carriers. Show all posts
Sunday, July 12, 2009
App Store Insights
Sunday, June 7, 2009
The App Store Fever!!
‘If you can’t beat them, join them’ is probably the mantra for all the iPhone Rivals. I don’t blame them, with estimated revenues of US$50 million to $100 million from the app store, I would be enticed to do the same (maybe, I will! :))
Well, one thing Apple has going for it is the fact that the app store caters to only one handset model (and the ipod touch, but that too has the same o/s)! I can’t think of any other device maker who has generated so much hype, revenue from just one product (slight variants have released but it still is just the iPhone).
I believe that this is one advantage and a big driver in the success of the App store that many rivals are overlooking. Think about it, the mega project- Nokia OVI (which launched early last week) is already experiencing the problems associated with catering to a bazillion handsets and to offer a consistent great customer experience. Running the OVI operationally is going to be one uphill task. We all remember what happened to Preminet, NGage Arena etc...
The other App store that has all the marketing and money muscle behind it is the soon to be released Vodafone App store. Well, being in the business, I can’t begin shuddering about the complexity of the Vodafone App store business. It will have to cater to the largest universe of handset models ever, offer a great seamless experience and simultaneously not antagonize its subscribers with messages stating that their handsets don’t support the ‘cool’ apps (dont know about you but I sure do get a lot of those messages on various wap portals and it really dissapoints me).
Still, it’s very exciting. If the Vodafone app store does succeed, and I hope it does, it will bring back the spotlight on the mobile operator as the driver of the mobile entertainment and lifestyle space, not just a dumb pipe. With its traditional strengths of distribution, billing and subscriber relationships, it has half the battle won.
Well, one thing Apple has going for it is the fact that the app store caters to only one handset model (and the ipod touch, but that too has the same o/s)! I can’t think of any other device maker who has generated so much hype, revenue from just one product (slight variants have released but it still is just the iPhone).
I believe that this is one advantage and a big driver in the success of the App store that many rivals are overlooking. Think about it, the mega project- Nokia OVI (which launched early last week) is already experiencing the problems associated with catering to a bazillion handsets and to offer a consistent great customer experience. Running the OVI operationally is going to be one uphill task. We all remember what happened to Preminet, NGage Arena etc...
The other App store that has all the marketing and money muscle behind it is the soon to be released Vodafone App store. Well, being in the business, I can’t begin shuddering about the complexity of the Vodafone App store business. It will have to cater to the largest universe of handset models ever, offer a great seamless experience and simultaneously not antagonize its subscribers with messages stating that their handsets don’t support the ‘cool’ apps (dont know about you but I sure do get a lot of those messages on various wap portals and it really dissapoints me).
Still, it’s very exciting. If the Vodafone app store does succeed, and I hope it does, it will bring back the spotlight on the mobile operator as the driver of the mobile entertainment and lifestyle space, not just a dumb pipe. With its traditional strengths of distribution, billing and subscriber relationships, it has half the battle won.
Sunday, February 22, 2009
Telecom Operator as Dumb Pipe -2
As you read this, handset manufacturers and content companies are slowly clawing their way into the content services space and loosening the grip of the almighty carrier. With their inherent quick decision making and execution, unlike carriers, handset manufacturers have developed or are developing strong content marketplaces to rival the carrier’s own content store.
Handset companies like Nokia, Apple and the likes have, with great speed and agility, become THE place to go to for content publishers to distribute content and consumers to find cutting edge content and services. This again sounds like the inevitability of carriers becoming ‘dumb pipes’ with no role to play in content and services. What's worse for the carrier’s is that the device makers are bringing aboard alternative modes of payment and billing that totally bypass the operator’s most prized advantage- the direct relationship with the subscriber. When you give away billing to external parties, you lose valuable information on the subscriber’s consumption patterns, preferences and of course, the ability to make that much needed ARPU-swelling transactional revenue.
The iphone has already made AT&T a bystander to the content services that the Apple is providing to its subscribers through the itunes app store. Since the average monthly phone bill for an iPhone user is $95.34 and the average bill for other users is $59.59 AT&T probably isn't too worried about this. However, they should, it’s a shame that carriers cannot capitalize on the inherent advantages that they hold- subscriber information and relationships, billing capability, the networks, the content store, the massive infrastructure and resources!...need I say more?!
Its going to get tougher for carriers with Nokia putting all its muscle behind OVI, Blackberry too is toying with the idea of an app store (makes great synergy) and so is Sony Ericsson…
With so much influence in the space, it is absolutely important that operators not give into “easy money” by becoming dumb pipes like the ISPs. It’s time for carriers to start shaping the future of the mobile services space.
Handset companies like Nokia, Apple and the likes have, with great speed and agility, become THE place to go to for content publishers to distribute content and consumers to find cutting edge content and services. This again sounds like the inevitability of carriers becoming ‘dumb pipes’ with no role to play in content and services. What's worse for the carrier’s is that the device makers are bringing aboard alternative modes of payment and billing that totally bypass the operator’s most prized advantage- the direct relationship with the subscriber. When you give away billing to external parties, you lose valuable information on the subscriber’s consumption patterns, preferences and of course, the ability to make that much needed ARPU-swelling transactional revenue.
The iphone has already made AT&T a bystander to the content services that the Apple is providing to its subscribers through the itunes app store. Since the average monthly phone bill for an iPhone user is $95.34 and the average bill for other users is $59.59 AT&T probably isn't too worried about this. However, they should, it’s a shame that carriers cannot capitalize on the inherent advantages that they hold- subscriber information and relationships, billing capability, the networks, the content store, the massive infrastructure and resources!...need I say more?!
Its going to get tougher for carriers with Nokia putting all its muscle behind OVI, Blackberry too is toying with the idea of an app store (makes great synergy) and so is Sony Ericsson…
With so much influence in the space, it is absolutely important that operators not give into “easy money” by becoming dumb pipes like the ISPs. It’s time for carriers to start shaping the future of the mobile services space.
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