Tuesday, August 31, 2010

$1.54 Billion U.S. Mobile Content Revenues in 2010; $3.5 Billion in 2014

Mobile content revenues will reach $1.54 billion in the United States this year, according to a new report from eMarketer. 

Analysts at eMarketer estimate combined revenues from three principal streams—subscriptions (streaming music and mobile TV services); direct and pay-per-view downloads (full music tracks, games and TV/movie/event programming); and advertising-supported (games, music services and video)—will more than double from 2010 to reach $3.53 billion in 2014.

Gaming is by far the leader in terms of usage and revenues: The number of U.S. mobile gamers is expected to reach 64 million in 2010, driving revenues of $849 million.

Meanwhile the number of US consumers who watch mobile video or television on their mobile devices is expected to reach 23 million this year and draw revenues of $719 million. By 2014, however, mobile video revenues are expected to reach $1.3 billion. 

Verizon Business Introduces Hybrid Cloud Computing Solution

Verizon Business and VMware have launched a new enterprise-class hybrid cloud solution that will enable enterprises to move their applications to the cloud more quickly without compromising security or performance.

The hybrid solution allows enterprise managers to use all their existing VMware tools "in the cloud," just as if they were interacting with the local data centers. All existing firewall and other security measures usable in a local data center also are available when using the cloud computing service as well.

That eases operational chores, maintains security, and also allows managers to gradually test and use cloud computing services without a "flash cut" to the new paradigm. Most enterprise information technology managers are being asked to test cloud computing, but every manager also is responsible for ensuring that current operations are not endangered or disrupted.

The new hybrid capability allows VMware customers to use cloud computing for some tasks and in-house facilities for other activities.

Customer Service, iPhone, Combat Churn for Verizon, AT&T and Sprint Nextel

Credit good customer service for Verizon's traditionally low churn, customer appetite for the iPhone for AT&T's performance, and improved customer service for Sprint Nextel's better performance of late.

Mobile Churn Issues: the Youth Element

Churn is a big problem for mobile and all other service providers because younger users simply are less loyal than older users.

Older Adults: Social Media Use Doubles

While social media use has grown dramatically across all age groups, older users have been especially enthusiastic over the past year about embracing new networking tools. Social networking use among internet users ages 50 and older nearly doubled—from 22 percent in April 2009 to 42 percent in May 2010.

Between April 2009 and May 2010, social networking use among internet users ages 50-64 grew by 88 percent--from 25 percent to 47 percent.

During the same period, use among those ages 65 and older grew 100 percent--from 13 percent to 26 percent.

By comparison, social networking use among users ages 18-29 grew by 13 percent—from 76 percent to 86 percent.

Verizon Encourages Mobile Substitution, in Some Markets

You might it a bit jarring to see Verizon encouraging customers to replace their landline phone service with mobile service. But there's a good explanation. Verizon operates landline networks in only part of the country. It operates wireless networks nationwide.

So Verizon actually gains if it can convince a landline voice customer outside its wired network service area to switch to the Verizon wireless service. Sprint and T-Mobile USA have an even-easier position. Since neither firm owns any fixed access network assets, both firms likewise can encourage wireless substitution without risking any cannibalization of existing revenues or customer base.

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Marketing Spending to Rise

Chief marketing officers surveyed recently by Professor Christine Moorman at Duke's Fuqua School of Business reported that on average their budgets would increase 9.2 percent, a much larger increase than any of the other surveys done in the past two years. Spending on social media also is rising, as you might well expect.

Net AI Sustainability Footprint Might be Lower, Even if Data Center Footprint is Higher

Nobody knows yet whether higher energy consumption to support artificial intelligence compute operations will ultimately be offset by lower ...