Universal, Qualcomm Make Mobile Music
by
Cassimir Medford
on
29 May 2008, 13:19
Categories:
Media
-
Communications
-
Internet
Topics:
music
,
qualcomm
,
Universal Music Group
,
Michael Goodman
,
Cassimir Medford
,
BrandXtend
Universal Music Group on Thursday said it will offer
mobile products and services direct to consumers using technology from mobile
chip maker Qualcomm.
The move highlights the music industry's effort to wrest
some control of its mobile audience from intermediaries such as carriers and
handset makers and find new ways to generate mobile revenue.
Universal will sell merchandise such as ringtones and wallpapers and offer
services such as artists’ updates through its network of web and WAP sites
using BrandXtend, Qualcomm's mobile content delivery technology.
Products such as ringtones are generally available through carriers, a distribution
channel popularly called "on-deck." The carriers control the distribution
and content quality etc., but they also control the consumers' expectations,
said Michael Goodman, an analyst with Yankee Group.
By going off-deck, which means making ringtones and other
mobile phone products available on the mobile web without the direct
involvement of the carriers, the record labels get a direct line to the
customer.
"The carriers do not have the incentive to take the kind of risks required
to innovate on the mobile web," Mr. Goodman said "They are
measured on churn, subscriber acquisition, and ARPU. Those metrics are not
about risk. They are about mitigating risk."
Qualcomm's BrandXtend is based in large part on
technology the San Diego-based firm acquired in 2005 when it paid $57 million
for United Kingdom-based ELATA.
The technology allows entertainment, music, and game
companies to market their mobile wares directly to the consumer. It allows the
companies to create new products and services and format them for mobile
delivery.
Despite major gains in bandwidth and handset sophistication, selling products
via the mobile network and the mobile web remains a challenge.