Mobile & Broadband Music

Ted Cohen - moderator, TAG Strategic

Brad Duea - Napster
Victor Fredell - Sony/Ericsson (80% of content revenue comes from games)
Cyrill Glockner - Microsoft
Ken Hertz - entertainment attorney, GH&L LLP, Beverly Hills - Will Smith, Beyond, Black Eyed Peas, etc.
Paul Campbell - works with Quincy Jones - QD3 (QE3?) Entertainment
Chris White - Motorola global music efforts

Napster - side-load to mobile phone or over air (ATT, DoCoMo, European carriers), .99 per song or $15/month

Collapse of DRM at major labels??
- for purchase
- subscription will continue to use DRM
> Fredell - about the music experience overall, not just eliminating DRM (which is one of the pieces)
> White - exciting to see, but in Asia 90% of music biz is OTA, all DRMed...
> Ken Hertz - not really significant revenue... artists believe every day is their last day in the business (21-yr old out at 25)

How shipment of music-enable phones effects the industry...

What went wrong with Plays For Sure?
> Glockner:

Nokia - "Comes With Music" - introduced in Dec, phone with 1 year of music even after subscription ends, no burn, no copy, but stays in Nokia device

In music business models you are selling: convenience, quality, monitizing affinity

Napster - Swisscom (no-DRM approach, 5-song trackpack - ALL phones, 5 songs per month) vs AT&T (DRM with 1 phone, Microsoft)

subscription or ala carte bundle? (semantic difference only)

Hertz - assume everything is going to be subverted somehow (technically) so build your model with that assumption

Consumer Adaption /= Business Model
Ad-supported model tough to make money

2008 - labels will publicly embrace blanket licensing (ala ASCAP, BMI) - some is going to happen

"3D-Radio" - TiVo for radio...

iRadio - motorola, does not exist

Moto - every phone is Asia has FM radio

sideloading vs. OTA
4GB cards < $40 !

3 major trends (Glockner):
> mobile experience, access anywhere to my content
> PC is increasingly a platform for video
> CE manufacturers want to participate

--- 2008-2009 NBT? --- L to R
greater compatibility, ease of use
media management within phone, navigation through media
better end-user experience on mobile devices > Silverlight...
blanket licensing debate
role of advertisers, value add but no dedicated budgets... shift of dollars to support innovative business models
handset HW and SW tech integration, switch from music to voice mode; device manuf getting more into content; more in-home compatibility

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