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TABLE OF CONTENTS
Introduction 1
Akumiitti's Market Vision 2001-2006 2
The Business Model. 2
ContentIs King 5
Handset Manufacturer Alliances 6
End User Billing 7
Conclusion '" 8
About Akumiitti 9
INTRODumON
WHEN MOBILITY AND ENTERTAINMENT COLLIDE
There are two major elements to people's lives today, entertainment and mobile technology. The
amalgamation of the two is no longer a concept, but a revolution born to succeed. Wireless portable
devices such as PDA's, CO players, Televisions, digital cameras and video recorders has meant people can
consume their favourite forms of entertainment on the go, but no device has had greater impact and
transformed the way people live, work and interact more than the mobile handset or terminal.
The big revenue earners are the value added content and services which appeal to the mass market, are
fun to use and provide entertainment. Since the inception of the first ringtone, subscriber demands as
have subscriber numbers continued to escalate at an overwhelming pace. Where ringtones, icons and
picture messages provide the current staple mobile entertainment diet for subscribers. upcoming
technological advances will see a greater variety of content and services available. providing increased
interactivity and richer entertainment, a veritable plethora of fun on the runo
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means we will see significant movement in subscriber
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Akumiitti will exploit all the technological benefits that hit the market. First mover advantage has long
been a long tradition with Akumiitti ever since the launch of the company in 1993, and this advantage
will also be a defining character for the company into the next five years.
TECHNOLOGY MOVES
Breaking barriers with greater bandwidth enabling technology, such as GPRS, will enable us to provide
richer content and better service for all those using Akumiitti's ESC software. The evolution to the next
generation of mobile entertainment will be defined by Akumiitti, bigger packets of data delivering
greater content. transferred over faster and more reliable connections to an increasing mobile world.
With the expected evolution in mobile data and entertainment usage over 3G networks, Akumiitti will
provide advanced streamed and downloadable content that will use full colour, interactivity, video and
high quality audio capabilities ofthe third generation handsets. There will be a significant increase in the
amount of content and services available, providing greater interactivity between subscriber and service.
SMS games, chats and biorhythms will require sustained input and communication between subscriber
and handset or terminal, resulting in a prolonged entertainment experience and increased subscriber
buy-in, whilst comics and animated screen savers provide a more in-depth entertainment experience.
Advanced audio quality and new video streami ng will follow inli ne with the underlying technologies.
As mobile entertainment content starts to resemble traditionaI broadcasting content, the value and
importance of branded offerings will increase. Akumiitti's partnerships with the leading media companies
means that we can continue to deliver COSMO, the most desirable, professionally created and b-anded
content packages for service providers and mobile operators in the period 2001-2006 and beyond.
Akumiitti's ESC Entertainment Service Center forms the basis of the value chain, providing network
operators with a software solution that makes it possible for them to deliver mobile entertainment
content and services to subscribers.
Figure 2. Akumiitti's Business Model
SUBscmBERS
CLOSE CO-OPERATION
Market research has shown that content quality; professionally created and branded are the primary
purchasing deciders for subscribers. In order ta obtain this desirable content, it is dependent upon three
fundamental components; technology, device or handset and content suppliers. Akumiitti utilises and
promotes this business model as it facilitates close co-operation with these professionals resulting in
content and services that really sello
Akumiitti has developed a series of programs and alliances' which facilitates the flow from content
production ta subscriber sales. The Mobile Industry Device Alliance involves the ongoing co-operation
with major handset manufacturers, resulting in the timely availability af new content formats utilising
new handset features upon market release. Working with the top content providers and capyright owners
in the field, Akumiitti produces COSMO, a centralised content source for delivery, updates and
management for mobile operators and portals. As channel managers for this business model it means we
can also provide feedback and market analysis to content providers, Service Providers and Operators as
required. This combined with other initiatives such as the VAR Partner Program provides for extensive
global reach, ensuring ongoing profitable returns ta our value chain participants.
COPYRIGHT ISSUES
In the entertainment business the key to real success is high quality content, and so accordingly, content
owners guard their copyrights and commissions vigorously. The issue of forwarding content and services
is an area of the mobile entertainment industry under careful inspection, with the market growing so
rapidly the industry cannot afford to simply rely on honesty and integrity.
Professionally managed business channels such as Akumiitti's which sources content globally for COSMO
is protected and copyrighted. Correspondingly ESC software addresses copyright management, providing
transaction details and reporting, a copyright database and fee payments accardingly ta our content
providers, providing a secure environment forthem to do business.
Illegal content is a threat ta the core af the industry, in order ta protect and sustain standards in the
future, Digital Rights Management (DRM) will become an industry standard combined with new
technologies restricting misuse af downloaded content.
model was to exclude content providers, where subscribers create content like ringtones and icons,
uploading it to the network operator website for the availability of other subscribers. Problems arise with
poor quality content and naming conventions, making it difficult for subscribers to locate desired
content. Here too, copyright issues are the responsibility of the network operator to check all
compositions and pay fees accordingly. and Service Providers may also encounter problems with
scalability.
Asecond alternative included the content provider but omitted the software provider. Here, operators
implemented their own tailor-made software solution but outsourced the contents of the service.
Network operators are then often penalised with lengthy time to market and the lack of capacity to serve
all subscribers, having to engage the services of many content providers to guarantee best possible
offerings for their subscribers.
CONTENT PROVIDER
Due to content demand far surpassing supply. there is a constant need for content material to be sourced
and collaborated. Here the content provider acts as the go-between for content or brand owners and
Akumiitti. Content Providers gain revenue by supplying desirable. professionally created content for
COSMO, which is then distributed globally through our VARs and mobile operators.
SUBSCRIBERS
Subscriber demands are escalating, the desire for greater personalisation, richer content and Person-to
Person messaging services is continuing to expand. Ringtones, icons, logos, SMS text messages are
already commonplace and future content and services will be dictated by a combination of the
technology on which they reside and new handset or terminal features. Second generation entertainment
will include enhanced music with polyphonic sounds, enhanced graphics such as photo's, pictures,
postcards and games, animated images and short downloadable video clips, ultimately giving the
subscriber extra pleasure and mobile entertainment.
Akumiitti also co-operates with other industry leaders in creating proposal specifications for the ongoing
development and establishment of new industry standards.
CONTENT IS KING
KILLER APPLICATlONS
Killer applications are those mobile content and services which provide entertainment and have mass
market appeal, money makers of today and tomorrow, offering subscribers real added value at premium
prices.
The market which currently sees ringtones as the biggest seller, will then have the possibility to employ
the same audio files in a variety of ways, for example, being added to a picture and sent via Person-to
Person messaging, giving more life and character to an otherwise standard message.
TECHNOLOGIES
EMS will mark the smooth transition as we progress towards 3G technologies like Multi Media Messaging
(MMS), GPRS and I-mode. MMS groundbreaking technology commercially available towards the end of
2002, will then allow the sending of larger size data like short video clips and real audio music, the
second step in audio file use, with improved sound definition and polyphonics, samples and loops, pieces
of actual music performed by real and original artists.
This new technology provides the framework for the move from simple to richer content, resulting in
colour, animated screensavers, comics, picture postcards, SMS games, and chats. These forms of content,
with increased subscriber involvement, create greater levels of entertainment satisfaction promoting
continued use and consumer buy-in.
The most revolutionary component of future mobile entertainment will be the imminent introduction of
Video. Animation eventually followed by short video clips and photos will predominate subscriber
download selections. Sent to friends on special occasions or just for fun, informational ar educational
they will transform the way subscribers behave and present a whole new range of profitable
entertainment possibilities.
In order for the industry to be prepared, close alliances with major industry players will be imperative to
provide timely support of these content and services as they hit the market, providing a mutually
beneficial exchange of specifications and information. Those industry players that continue to succeed
will be those that recognise the market demands of the future and start preparing today.
In countries with advanced market areas such as Finland and Norway, service providers and portals
already possess the ability for flexible end user billing, incorporated into their existing software
platform. The future of end user billing will be undertaken in a two-step process. First. as the mobile
entertainment industry continues to rapidly expand, the potential revenue gain to all mobile operators
and portals is clearly obvious. As mobile entertainment becomes an industry standard for these service
providers, so to will their networks ability to automatically incorporate end user billing or alternatively
work in conjunction with software such as ESe.
The second step will see multiple service providers utilising the same network for business, where one
acts as a bill clearing service, not only gaining revenue returns from their own content offerings to
suppliers but also from subsequent service providers.
Flexible end user billing models will eventually be an industry standard, whereby all subscribers can be
charged premium prices for services.
Today's SMS based content provides simple but effective entertainment services; ringtones, logos,
pictures, proving both popular and significantly profitable. In the future subscribers will have the
complete package af audio and visual mobile entertainment. The effective business model actively fulfils
the supply, demand flow from content provider ta subscriber, proving invaluable for facilitating a
continuous revenue stream ta all industry players.
Strong commitment and support af the value chain will also mean creating alliances with both Handset
manufacturers and content providers. This managed channel results in the ability ta supply mass market
desirable content on demand utilising new features and fully exploiting new technologies, ta produce
richer and "hotter" entertainment. Handset sales are then increased through the ability ta support the
delivery af content that subscribers really want thus also creating more network traffic, an ongoing and
profitable revenue stream, from content owner ta subscriber.
In order ta generate the profits for mobile operators and portals, end user billing tao will have ta become
an industry standard, initially billing SMS at premium services, then onto EMS and eventually MMS.
Akumiitti sees the vision af the future as an exciting advance into total subscriber mobile entertainment.
We are committed ta providing the state-of-the-art total software solution ESC and content package
COSMO, making it possible for mobile operators and service providers ta deliver the money making
content ta subscribers today and tomorrow, on a global scale.
As a market leader we will take advantage of new technologies, however as a commitment to handset
manufacturers and operators, Ese will be assured to continue to run on all widely accepted network
operator platforms.
Sales Office
Akumiitti APAC Pte Ltd
7500A Beach Road #07-310/311
The Plaza, Singapore 199591
Republic of Singapore
Internet: www.akumiitti.com
WAP: wap.akumiitti .com
Email: sales@akumiitti.com
No part of this publication may be copied, distributed, transcribed, or translated without the prior written permission of
Akumiitti. Akumiitti has made every effort to ensure that the information contained in this document is adequate and free of
errors and omissions. If necessary, Akumiitti will explain issues that may not be covered by the documents. Akumiitti's liability
for any errors in the documents is limited to the correction of enors and the aforementioned advisory services. Akumiitti
welcomes customer comments as part of process of continual development and improvement of our documentation. Please
submit your comments to the Akumiitti support organization at info@akumiitti.com. Any trademarks mentioned in this
docu ment are properties of their respective owners