(keitai-l) Re: Is music download over 3G a possible business?

From: Giovanni Bertani <giovanni.bertani_at_exsense.com>
Date: 05/04/03
Message-Id: <E81086B7-7DBF-11D7-97AF-003065BA6D3A@exsense.com>
Symbian Exposium 2003 has been really interesting.

After considering different factors and reading your postings I think=20
that wireless digital content distribution is the future as multiplayer=20=

networked games are... A pervasive wireless network as huge potential=20
never seen before that will surpass the advantages of traditional=20
distribution, OTA distribution is really the future...Napster and=20
Gnutella have already proved this, and music is perfect for a mobile=20
context (Much more than video) as you can consume it on the move...

As jeff funk writes:

  "KDDI has been offering 30-second downloads of music and the service.=20=

the
rumor is that the service is doing very well."

There is any reason to stop a service providing a full song download=20
service? I  personally do not see one...

I've been talking with people from Nokia responsible of the N-Gage=20
project and looks like that also Nokia has decided not to support=20
Microsoft DRM technology even if was the only system capable of=20
managing the digital rights. To a specific question they just answered:=20=

"We listen to vendors but we listen more to the market and the market=20
wants MP3 and AAC". So right now MS is seen as a competitor from the=20
big music majors, handset producers and mobile network operators...=20
good job Mr gates... My impression is that the industry is waiting for=20=

an open standard safe format to distribute music as nobody wants=20
Microsoft into the digital content business. In this scenario the new=20
service from Apple looks very interesting in both business model and=20
technology. Symbian has also introduced an interesting feature into the=20=

latest release of their OS:

"...Symbian OS v7.0s implements Multiple PDP contexts and a Quality of=20=

Service framework. Multiple PDP contexts allow users of mobile phones=20
based on Symbian OS v.7.0s to access more than one network service at=20
the same time and with varying QoS. Users can access email whilst=20
simultaneously surfing the web or downloading an application. For=20
network operators, this allows multiple, simultaneous revenue streams=20
from a single handset, each with a different QoS and each with a=20
different charging model. Symbian=92s Quality of Service (QoS) framework=20=

allow phones to manage network connections intelligently, ensuring the=20=

best possible user experience in any given situation.  For example, the=20=

phone may provide a high bandwidth guaranteed network connection for=20
browsing and a low priority =93best  effort=94 network connection for=20
downloading emails. This results in a great browsing experience for the=20=

user whilst emails are downloaded in the background. "

A key problem of music OTA distribution is that right now it could be=20
not sustainable as the costs of the data traffic could be higher than=20
the value of the music by itself. With this OS feature you could in=20
theory define a low priority service for music download in the=20
background. As the mobile network has very high fixed costs and limited=20=

or no marginal costs this could make sense as the music download=20
service could be priced at much lower costs, by using the off-peak=20
best-effort available bandwidth, than the real-time services as=20
browsing, real time video etc.. This is also in line with the user=20
expectations as I do not think that real time music will be needed ad=20
it is not needed over Gnutella networks...

So is very important to have a different pricing for different data=20
QOS. Actually I think that this approach will be of major importance in=20=

optimizing 3G networks for content delivery and general data services.

So by merging this ideas a service and handset could be like this:

Hardware
The handset could have a  2-3gb microdrive (solid state could be good=20
but is now too expensive) and a power reserve feature. At 70% of=20
battery life (3-4 hours of music playing) the music player could be=20
stopped and the user advised of the remaining battery. The user will=20
chose to use the remaining battery or not. You will need a standard=20
audio out jack to connect you Keitai to the Hi-Fi system. I expect to=20
have an handset like this in two years in the same way camera phones=20
have been moving to high definition.

Music format
An open standard maybe based on AAC or MPEG4.

Business model
Similar to Apple using the off-peak available bandwidth. As an option=20
you will be able to transfer the music to one single PC and from there=20=

to burn CDs in the same way as Apple iTunes. Revenue will be shared=20
between the operator and the music label but in any case the price of a=20=

song will be lower o equal to the standard CD.



Giovanni Bertani




The impact of Apple music download service:

http://news.com.com/2100-1027-998880.html?tag=3Dnl
Received on Sun May 4 02:37:14 2003