The big question is whether the market will continue to use specialized mobile music devices and software for downloading and playing music, or will instead opt for a converged mobile device, such as a mobile phone music player. The answer may lie in your kitchen or living room. Take a look – do you have a combined TV, DVD and stereo? Do you have an all-in-one toaster, blender and oven? Probably not, but converged devices are important to particular segments of the market.
“History has shown that there is a place for everything,” says Ian James, senior business consultant for Ericsson in South Africa. “There will be people who want their entire CD collection on a specialist mobile music player such as the Apple iPod, but there will also be those who only want one device in their pocket.” The latter is the basis for the launch of the new Sony Ericsson Walkman which combines an MP3 player, radio, camera, a 512MB memory stick and of course a phone in a single device. .
There are, however, lessons to be learned from Apple’s astounding success in this market. “Apple has not just created a cool gadget, it has created an entire universe,” says James. Apple’s success is a result of its marketing and its ability to target different segments of the market. By offering a range of accessories, it has made the device attractive to a broader range of consumers. The different-sized – and priced – models successfully target a variety of music listeners, and the move into in-car and home Hi-Fi docking stations is now breaching the ‘chasm’ into the mass-market. The iPod has become a fashion icon – even the design of the headphones, with their white cable, allows consumers to identify the brand, despite the device itself being hidden away in someone’s pocket.
One thing is for certain – being successful in delivering music requires an in-depth knowledge of the music industry. This may be one reason why the telecom industry has lagged behind in making music accessible to the mobile phone. James says, “To expect an operator to suddenly become a music provider sounds great and is technically feasible, but providing music is not just about the technology – it’s about being a part of the music business.” Music is not packaged like other content, and there is the added requirement from record companies for strict digital rights management to protect their artists’ work. This is something Apple has been very successful at managing with its iTunes software and music store.
Ericsson partners with various key players in the music industry for its hosting business, including online music pioneer Napster, Sony Music and Warner among others, “In a converged world you need partnerships that allow each player to gain a greater understanding of the other’s business,” says James. The partnership with Napster has created a lot of interest among operators since it provides them with a channel to associate with the strong brand names of individual artists. Ericsson has the expertise to bring music to the mobile phone and enable operators to launch new services fast, easily and cost-efficiently.
In the battle of converged or specialized music devices, there may not be just one winner. What is clear, though, is that continued success in this market will require technology companies to produce devices that are suited to different segments of the market, converged or otherwise.
