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CTIA 2007 – Closing notes
By David | March 30, 2007
While flying back to Europe I’m trying to sum up 3 intense days of wireless meetings, conferences and parties (most notably Motricity/MTV) and believe me, it’s not easy. My first impression when getting in Orlando was that the US market was about to take Europe over and make up its delay on the mobile content scene. Although it is true that the US market is accelerating, it is still lagging behind in many ways. Media companies for instance are not yet making the most of their mobile interactivity. When a viewer votes for American Idol or any other popular show, he’s not systematically offered another product through cross-selling such as his favorite artist’s ringtone or wallpaper. User interactions are not stored in a profiling database to push content and services that will match the user’s interests at a later stage.
Finally the bulk of the Mobile content market is driven by “grey area” services. Mobile content companies advertising exclusively on the Internet are spending up to $5 million a month to web affiliates, paying them up to $25 per subscriber. The most common method used by affiliates is email spam that promises a free ringtone. Upon download of the first free ringtone, users are subscribed to a $25 a month plan they often never use thereafter. The issue? Users don’t know they’re getting into a subscription. The mention of the charge is always in fine print, often unreadable. The result? Charge-backs from carriers reach 40-50% on these types of services and the market as a whole is damaged. This reminds me of the UK market in 2004-2005, which resulted in a backlash of the overall UK mobile content market in 2006 and now in 07. Stay tuned for US class action lawsuits soon…
This being said, millions of US subscribers will have the chance to get their hands on an iPhone as soon as June 11. The iPhone that made a quick but remarked apparition at the CTIA show has received over a million pre-orders according to AT&T/Cingular.
The last day’s keynote was delivered by former Presidents George Bush Sr. and Bill Clinton (see picture above). George Sr cracked a bunch of very funny jokes and anecdotes and one cannot help but to like the 82 years old ex-President when he flashes his Blackberry and admits being addicted. Bill Clinton’s speech was, as always, admirable, to the point and masterfully delivered. It is the second time I had the privilege to witness him deliver powerful speeches and I must admit he is one of the most charismatic, thought leader this world has created in our times.
Conclusion of this 3-day immersion: Yes, Europe is still ahead in Mobile, but not for long. The US market’s scale, entrepreneurs’ mindsets and access to capital will eventually compensate and ultimately bring the US in the driving seat of our booming industry.
Photo courtesy of Jennifer Huber.
Sphere: Related ContentTopics: iPhone, Motricity, CTIA, MTV |
