The challenge of mobile music
- towards true wireless music
Per Einar Dybvik
CTO & Head of Music, Aspiro
Nordic Mobile Conference
Tallin
3-4.december 2008
Tel-musici (1909)
The first on-demand music streaming service
Ordinary piece: 3 cents
Grand Opera: 7 cents
Guarantee: $18 a year
Source, Telephony, Dec 18, 1909
Phonograph by Thomas Edison (1877)
Tel-musici (1909)
The first on-demand music streaming service
Ordinary piece: 3 cents
Grand Opera: 7 cents
Guarantee: $18 a year
Source, Telephony, Dec 18, 1909
music distribution timeline
70s 80s 90s 2000 Future
wireless
Analog physical Digital physical Digital files True mobile
What will the future bring ?
The music market revolution
CD-sales are dropping 10-15% yearly
Paid digital music is increasing with 30-40% yearly
95% of music downloads is illegal
Music spendings around the world
Yearly spendings in US$. 2007
• Big variations in the personal music spendings around the world
• UK, Norway, Japan and USA are the big spenders (total music)
Digital share
2007 numbers. Digital music numbers incl. PC download, mobile (full-track, ringbacktones, ringtones)
61% of the South Korean market is digital
90% of digital sales in Japan is mobil music where 40% is full-track music
Digital sales by channel
The challenges ahead and what to do ?
Main problems and challenges:
Few people are downloading music
95 % of those that are downloading are stealing
Focus should be to:
Give the users legal alternatives that are easier to use
Make music affordable and with a value proposition that are
irresistible
Industry actions needed: Action 1
Music industry must create a fair
and sustainable value chain
motivating more music retailers/distributor to
come up with legal services
Retailers and other music distributors can´t live with the current low
margins
Record labels, Right Performance Organizations and even music
technology licensees (MP3) are taking above 70% of the revenues
Industry actions needed: Action 2
Telecoms must create business models
that also work for mobile music
Today there are no way non-operators can sell mobile music
High tariffs for mobile payment (CPA): 20-30% of revenues
Need to re-invent the model for low-margin product
Unpredictable cost of usage of bandwidth for downloading
SMS Message recieved last night
”Vi gjør oppmerksom på at din databruk hittil i dag
overstiger kr 1000. For mer info om datapriser i
utlandet, send SMS med kodeord UTLAND til 2424.
Mvh Telenor”
Freely translated into english:
”Listen carefully fool. You have spent 1000,- NOK
(same as € 110) so far TODAY. Keep on the good
work. Yours always greatful operator Telenor and
roaming partner Elisa”
Industry actions needed: Action 3
Music industry must be more flexible in
their view on DRM-protection to get a more
user-friendly experience
The music want´s to be free – not limited to a certain device
Can´t fight piracy with unfriendly user experience
We encourage the record labels to accept DRM-free MP3-downloads
Industry actions needed: Action 4
The whole music value chain must
work together to give the users
flexible and irresistible value propositions
that can fight piracy and attract new users
Stimulate subscription-based services
Let the users stream music with unlimited access to music
Let the users download MP3 music to use on any device
Why streaming music?
Best answered with the question:
Why do you need a local copy ?
The only reason, in short –term perspective, is to be able to
download the music onto your mobile device for use
outside the reach of a broadband network
Aspiro Music
music on-demand solutions
Aspiro Music Offerings
MP3
The ”only” integrated music platform
XML
JAVA
State-of-the art technology solution supporting music download
and streaming for all devices incl. PC/Mac and mobile phones
Comprehensive music database
1.8 mill tracks from all major labels and 5000 minor labels
$ Managed music shops and marketing services
In-house music experts and promotion tools
Content agreements, reporting and settlement
Handling all reporting and settlements with all records labels
and other right organizations (i.e. STIM, NCB, Tono)
Integrated multiplatform music solutions
MP3 Download on Web PC/MAC Streaming
free to use on all devices
Aspiro Music
Download to mobilephones Database
Mobile Streaming
DRM –protected and MP3
Thanks !
contacts:
pere@aspiro.com