Posts Tagged ‘ forrester ’

Consumer doesn’t want to pay for mobile music

A few months ago, we discussed how mobile music is evolving from ring tones to new music services.   However, it’s not easy to find the right model to generate revenue in this market.

In September, the iPhone app Spotify was launched to the Apple app store, allowing users to access music playlists on their phone as part of the £9.99 ad-free monthly subscription.  However, the reactions were very mixed.  From the 1800 consumer reviews on the first day of the launch, there were 400 people giving the maximum of 5 stars, but no less than 1100 giving it only one star.
According to a survey among readers of the British website nma.co.uk, 2 out of 3 is not willing to pay for streaming music. 

Mark Mulligan, VP and research director at Forrester Research, said the mobile music market is a tough challenge and no one has yet cracked it. “Consumers have generally said they have no appetite for paying for streaming music and there’s endless evidence that they won’t buy music they don’t own. So realistically, for Spotify, the aspiration should be to convert a small number of people to premium via the mobile app,” he said.

But a Spotify spokesman told NewMediaAge the company wasn’t surprised by consumers’ responses to the app. “We always knew the majority of users would stay on the free service,” he said. “We’re getting a lot of traffic from people used to free illegal downloads, so they expect us to be free. We’ve only launched on the iPhone and Android for now, so that’s just a small percentage of the market, although we’re confident a fair number will upgrade.”

Meanwhile, Napster, the illegal-gone-legal music service has reacted to the Spotify launch by halving the price of its streaming service to £5 a month. 

Who will win this competition?  Or will consumers stick to their illegal downloads, still found everywhere online…?

Mobile Internet usage to reach 39% in 2014

According to a recent Forrester research report, one out of 3 European consumers will use the Mobile Internet in 5 years from now. 
 The adoption of the mobile platform is set to grow from 13% in 2008 to 39% in 2014.

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Mobile Internet use in Belgium will triple

According to a new Forrester study, the use of the Mobile Internet in Belgium will triple over the next 5 years.    While now only a mere 9% of Belgian mobile users surf the mobile web, this will be 28% in 2014.  Still, this means Belgium still seriously lags behind in Europe, where an average of 39% is expected.  Our Dutch neighbours would even go up to 47%, almost half of the mobile population.

Forrester gives a few explanations for this bad score:
– First of all, the amount of 3G networks is limited, with Base still not offering anything. 
– Secondly, there is (or rather, was) the ban on combined sales, which meant that smartphones are still expensive and are less prominent than in other countries.
– Thirdly and most important, is the lack of flat rate subscriptions. 

So it’s mostly up to the mobile operators, whether or not they want to give a boost to the mobile internet market.  With profit for voice and text decreasing, one would think they are eager to stimulate this mobile platform…