Thursday, October 23, 2008
Another DUH moment
Textually posted this post titled "Mobile Music Business Sluggish?".
Firstly I'd say, although the title is a legitimate question, it proposes something that clearly ignores the reality of making business in mobile media in the US. Not to mention suggesting that the mobile music as a whole is sluggish based on US survey results...c'mon
Here's a couple of pearls from it:
"...only five percent of U.S. mobile subscribers side load tunes from their computer while less than half of that, two percent, download tracks over the air, despite the emergence of online stores from Nokia, Jamba and MusicStation..."
Why is anyone surprised that in the US, consumers aren't aware or interested in getting multimedia on their phones? that direct-to-consumer initiatives are well behind those in EU, for example (despite large marketing budgets and fantastic technologies) ? have you NOT been reading about Verizon 3 cents-per SMS cost rise stunt just a few days ago (as example)? There's a reason why even established, strong D2C players had not penetrated the US market, and we all know what that reason is.
which leads to the next quote:
"about 66 percent of respondents to a recent survey said nothing would motivate them to listen to music on a mobile."
Oh sure. Spending another $100 or more on a music player when your phone could do the same or better job playing music makes a lot of sense when you're 22 and barely paying your rent.
No. There's a reason for this survey result and it has to do with consumer awareness and expectations.
In a recent local focus group I ran, 6 out of 8 22-year old interviewees did not know they could put music on their phone and listen to it as they please, or faced infinite trouble doing it. They said: "I DIDN'T KNOW I COULD DO THAT" or "I couldn't do it"
It's incredibly difficult for D2C players to raise consumer awareness and expectations, and that's no coincidence. Second, even if the consumer knew how to load music to their phone, they would usually be blocked from doing it, unless they have 5-inch thick geek glasses to figure it out.
Close with this related comment from a different post:
"Whilst MNOs such as Vodafone carry on pushing further into mobile advertising, several major advertising agencies continue to express the significant disconnect between their wish to involve the mobile channel as part of an overall campaign and the technological hurdles involved."
Need I say more?