Friday, March 18, 2011

Mobile Cloud-Based Music Streaming Services: 95% Growth Rate to 2016

“The number of subscribers to mobile music streaming services is expected to approach 5.9 million by the end of this year,” says Aapo Markkanen, ABI Research analyst. He believes there will be 161 million subscribers in 2016, representing a compound annual growth rate of nearly 95 percent. Sometime in 2012 the Asia-Pacific area will become the largest regional market for mobile music streaming, he argues.

But he also says rewards might be unevenly distributed. The biggest winners from these developments are likely to be consumers and online distributors such as Rhapsody, Melon and Spotify.

Record labels, producers and other middlemen whose businesses have been shaken by content piracy also stand to gain from streaming services as they have an opportunity to monetize a lot of consumption that would otherwise take place outside their revenue base.

For musical artists, there are both positives and negatives: it will be more difficult to make a living by selling recorded music, but the barriers to wide product distribution will fall fast.

Those predictions show the complexity of evolving business ecosystems for content. In this case, distributors and some content owners might gain, almost across the board, but independent content producers might suffer. In other content segments, you might see different patterns.

Apple iPhone 5 Might Have Near Field Communications

There have been conflicting rumors about whether the iPhone 5 will support near field communications or not, and how it might do so. But here's one vote for the iPhone 5 being shipped with NFC. read more here.

Google Launches "Application Stats" for Developers

Just about every consumer electronics product now includes software or content as key parts of the end user experience. For experience providers, it appears that information now also is becoming a key part of the product creation process.

Google has launched a new "Application Statistics" dashboard in the "Market Developer Console" that gives developers information (in aggregate) about who is buying a particular application from the Android Market.

The new dashboard provides charts and tables that summarize each app’s active installation trend over time, as well as its distribution across key dimensions such as Android platform versions, devices, user countries, and user languages.

The dashboard also shows the comparable aggregate distribution for all apps in theAndroid Market. Developers could use insights gleaned from actual activity to guide development of new apps.

"Work-Arounds" for iPad at Work

Walt Mossberg talks about ways to use office productivity apps on an iPad. It's not a way I'd want to work, but some will find the features helpful. Somehow, these apps, intended to remedy the inability to import apps and files using a USB port or other method, seem to defy the tablet's basic nature.

I wouldn't necessary call any PC "elegant," but doing the sorts of things these apps allow you to do on an iPad just suggests you should be using a different device. There are lots of things an iPad or tablet handles quite well, but standard office productivity apps don't strike me as being among those things.

My shovels, rakes, pitchforks and trowels aren't elegant, either. But they do precisely the job I need them to do.

Thursday, March 17, 2011

3 Waves of Mobile Payments

What Banks Could Learn from Apple

Actually, most firms could learn a lot from Apple.

Social Networks Drive News Consumption

There's probably a very good reason the New York Times will allow virtually unrestricted access to readers who arrive at the online site from Facebook or Twitter. Some 75 percent of online news consumers say they get news forwarded through email or posts on social networking sites and 52 percent say they share links to news with others using social networking sites and email.

Some 51 percent of Facebook users who are also online news consumers say that on a typical day they get news items from people they follow. Another 23 percent follow news organizations or individual journalists on social networking sites. See http://www.pewinternet.org/Reports/2010/Online-News/Summary-of-Findings.aspx.

As with most applications, some users are active than others. About 27 percent of users share 87 percent of the stories.

Mobile Supplements Other Forms of News Consumption

With the caveat that tablet behavior might produce different results in the future, and that behavior might already have changed in the smartphone area, a study of news consumption suggests that smartphones mostly supplement, rather than displace, other forms of readership.

Smartphones are only used to read or watch news when people have time to kill during the day and other media (such as TV or newspapers) are not available. One caveat is that the study was conducted in 2007, and you know how much can change in four years.

Computers were the most common way for people to access the news, at 39 percent total, 24 percent on desktops and 15 percent on laptops.

TV came in second at 29 percent, and newspapers and radio tied at nine percent apiece. Only about seven percent of all media sessions happened on a mobile device. More than half (58 percent) of news consumption happened at the participants' residences, though 21.4 percent happened at work, and 10 percent happened while in a vehicle.

Apple's Mac App Store Sales 50% of iPad App Store Sales

Based on recent sales of the top-300 apps at the U.S. Mac, iPad, and iPhone app stores, Mac store sales are already half what you see on the iPad, app analytics company Distimo says.

The reason is that the average price of a top Mac app is much higher than the other platforms. Distimo says a top-300 Mac app sells for $11.21 on average, compared to $4.19 for iPad, and $1.57 for iPhone.

When is a Paywall Not a Paywall?

On March 28, 2011, readers who go to the New York Times online site will be able to view 20 stories for no charge, but will be asked to subscribe after that level of usage. But readers who come to Times articles through links from search, blogs and social media like Facebook and Twitter will be able to read those articles, even if they have reached their monthly reading limit. For some search engines, users will have a daily limit of free links to Times articles. That appears to mean Google users, who appear to be limited to five articles a day.

So the paywall is going up, but uses can use Facebook posts and Twitter feeds to read stories people think are important, with virtually no limit.

That's a clever way to put up a paywall without risking a huge falloff in readership.

Mobile Payments Sometimes Overlaps With Mobile Banking

The retail mobile payments business is conceptually distinct from online payments or mobile remittances (sending money, from one person to another) or mobile banking (people sending money to retailers, or using mobile as a way of getting account status and information from a mobile, including conducting transactions).

But sometimes there are areas of overlay. Zong, for example, has made a business of supporting "buying" activities by online gamers. Zong recently conducted a survey that found about 24 percent of Zong users do not have a bank account or credit card.

On the other hand, 34 percent said they used mobile payments rather than online from a PC because “it’s fast and easy.” Another 22 percent said they used mobile payments, instead of online payments, because “it’s fun.”

The possibly important observation here is that mobile payments are used, even when other alternatives are available, because it is "fun," not just because it might be fast or easy. That might hold some implications for the further development of mobile payment systems. "Saving money" is never unimportant. But "fun" might be enough, even when the costs are able the same as using credit cards, debit cards or other online mechanisms.

U.S. Online Video Viewers Decline in February 2011

For whatever reason, it appears that February 2011 saw a bit of a decline in online video viewing by U.S. Internet users. According to comScore, viewing declined about two percent.

Some 170 million U.S. Internet users watched online video content in February 2011 for an average of 13.6 hours per viewer, reports comScore. The total U.S. Internet audience engaged in more than five billion viewing sessions during the course of the month.

In February 2010, 174 million U.S. Internet users watched online video.

LivingSocial Valued at $2 Billion

LivingSocial, the second-largest website devoted to daily coupons, is close to raising as much as $400 million in funding that would value the company at more than $2 billion, Bloomberg reports.

LivingSocial, which is three years old, said in December that it was booking $1 million a day of revenue on average and was on track to generate more than $500 million in revenue in 2011. The company says it now serves 24 million subscribers in 230 markets in 12 countries.

LivingSocial illustrates the increasingly blurred lines between the formerly separate disciplines of "advertising" and "promotions and coupons" and "retailing" and "commerce." Lots of small and local businesses have embraced LivingSocial and Groupon for a simple and practical reason.

Advertising gets bought in advance of any buyer activity. But when using a group shopping service, the "advertiser" pays only when a customer actually buys something. It isn't clear whether such promotional activity has any measurable impact on company branding and image. What is clear is that retailers like the economics of the service.

They pay only when a purchase occurs, can control the amount of money they want to spend on any single promotion, and essentially get free promotion for users who do not decide to redeem a coupon, but "see" the offer.

Video Collaboration and Mobility Impact Top Health Professional Expectations

It would not surprise you to learn that health professionals view communications tools through the lens of patient care. As you would expect, communications tools add value by improving patient care. About 67 percent of respondents to a survey taken at the HIMSS Conference and Exhibition, and sponsored by Avaya, indicated that the most beneficial value of mobile communications was "improving patient care by improving response time to patients."

Video communications were seen as value in the area of physician consultations and distance telemedicine, as you also would expect. You can read the full survey results here: read the study results here

read more here

Solving AI Model Marginal Cost Issues

Profit margins arguably are the key business issue for frontier artificial intelligence model providers. Where software businesses have tend...