Superflat Panda Swallows Mobile & Owner in the Name of Fashion

Check out this trippy 2003 Japanese advertisement/short for Louis Vuitton produced by KaiKai KiKi Co, animated by famed "superflat" animator Takashi Murakami featuring music by Fantastic Plastic Machine. It's a 5min very Japanese take on Alice In Wonderland involving a girl looking for her mobile phone (hence the post). Towards the end there is a bunch of stuff going on with iMode type sites and I'm not sure if the ad was partially about a mobile content play by LVMH. If anybody has a clue please comment below.

Fast & Frolicious: Text Campaigns Big & Small

I think shortcode text marketing campaigns are a vastly underused/underappreciated form of actionable, location-based marketing...particularly in the US. For marketers who know anything about CRM these campaigns have the potential to provide supervaluable relationship marketing leads. It's shocking how few brands do anything with shortcodes and text (or mobile in general).

That said I learned about 2 campaigns on opposite ends of the reach spectrum this week. One supports a national movie release and one supports a hyper local customer relationship campaign by a frozen yogurt shop.

Text FAST to UFILMS (834567): Universal Pictures is once again running a major text campaign to support their Fast & Furious street racing franchise. The 4th installment, simply titled Fast & Furious, opens in US theaters on April 3rd. The shortcode is prominently placed on all outdoor media (larger than the URL). The shortcode returns a link to a content rich, graphically compelling WAP site featuring movie info, trailers, a picture gallery and downloadable graphics, tones and games. Consumers can also provide their phone # to enter a sweepstakes to win $10k or a Subaru STI (yes I entered). On the last Fast & Furious film (Tokyo Drift) Universal also tagged the product and advertising of many of the film's promotional partners with unique keywords...we'll see if that materializes this time round.

Text YOGURT to 69302: Froyolife, my local frozen yogurt 2.0 place is capturing the mobile #s of local shoppers so the retailer can send them updates about new flavors and sales promotions. If they know what they're doing on cold days they will blast messages compelling users to come into the store with 20% off coupons and on hot days they'll MMS foodporn images of icy cold mango yogurt. This is actually the smallest brand I've ever seen using a shortcode campaign...I wish them luck and I hope it starts a trend.

Sidekick is Most Jacked Handset

Perhaps further enhancing the street cred of the quirky IMtexterrific flip top from T-Mo USA and Danger, USA Today posted an AP story speculating that the Sidekick may be America's most stolen handset. Police say that thieves in Boston, NYC and Providence are deliberately targeting the device and in some cases perps are even following users to an opportune spot to do the crime. Besides the celeb cache of the device the story cites the device's portable SIM card (inherent on GSM network devices) and the fact the US carriers apparently do not share information with each other about stolen handsets, like they do in Europe, (gotta love learning something new from USA Today) as contributing factors. The situation has gotten so out of hand in Boston that police and students from Boston Arts Academy teamed to create a poster warning people to "Hold On To Your Kick".

KongZhong Rocks On

Major Beijing-based mobile content aggregator/publisher KongZhong (KONG) recently released an unaudited 2008 earnings statement.

Revs = $96.69mil a 31% increase over 2007

(Value added services = $86.91mil, mobile games = $7.74mil & mobile advertising $2.04mil)

Net Loss = $20.66mil...the company would have been profitable without hefty write down of goodwill (popular theme)

Subsequently it was reported that the company had taken a $6.8mil investment from Nokia Growth Partners. Smart move for Nokia (NOK) with a company that is becoming the dominant content player in market on the verge of a 3G roll out that has proven impossible to penetrate without a local partner.

Overall KongZhong's stock price has held up really well during the current economic meltdown (particularly compared to it's competition) and it's market cap is an impressive $179.22mil (2x Buongiorno (BNG) which has 4x the Rev).

I currently have these guys as a Top10 mobile content player worldwide, sitting between Thumbplay and Gameloft...anybody want to challenge this?

Whole Lotta Handset Hullabaloo

Two stories getting major play today across the trades and blogosphere:

1) Apparently DoCoMo has stopped sales of RIM's BlackBerry Bold in Japan, where 30 customers have complained about the keyboard overheating during the recharging process. Odd that this is only happening in Japan. Hopefully this won't derail RIM's nascent business in that market...where foreign handsets (including the iPhone) have had a hard time getting any market traction.

2) UK operators are reportedly freaking out about Nokia's plans to preload the Skype client in their highly anticipated N97 and future N-Series handsets. No one who reads this blog is surprised by this development, right? (Note the first bullet in my post from February 18th).

Nokia Noodling Notebooks?

Both Digital Daily and Reuters have picked up on a YLE interview with Nokia CEO Olli-Pekka Kallasvuo in which he suggests that Nokia (NOK) might make a move into the laptop space. Kallasuvo suggests that it would be a logical extension of their business as the capabilities of smartphones and laptops converge (mostly in the form of netbooks). More likely this is a competitive reaction to computer makers like Dell (DELL) and Acer (2353) pushing into the mobile phone business where Nokia is currently the market leader. There is little doubt that Nokia could pull it off...the big question raised in the Reuters story is whether it makes sense for Nokia to compete in a much more commoditized product category, with much lower margins.

Does Paramount's iPhone Games Strategy Make Dollars & Sense?

PocketGamer.biz observes today that iPhone games based on Paramount movie titles are doing particularly well on the iTunes App Store UK paid App charts, with 2 titles currently in the Top 20. One key factor seems to be the bargain price point of £0.59 ($0.99). The same is true in the US and in addition to the titles that PocketGamer mentions, "Shooter - The Official Movie Game" (developed with Artificial Life & currently #5 in US) and "Iron Man: Aerial Assault" (currently #85 in US), Paramount is also doing extremely well with the library title "Days of Thunder!" (developed with Freeverse & currently #30 in US). "Days of Thunder!" is currently an App Store WHAT'S HOT title, loitered in the Top 10 all last week and is receiving solid reviews from the major gaming sites. This title was originally priced at $0.99 and increased to $2.99 this week (accounting for it's move out of Top 10)...which is actually a retreat from the original plan (according to IGN) to take it to $4.99 on February 8th. I have mixed feelings about the success of these titles. On one hand I'm glad to see that there is clearly an audience for quality movie based mobile games and I think this should help elevate industry perception of the genre (or at least of some titles from some studios). On the other hand I think Paramount's aggressive pricing strategy is contributing to the price erosion in the iPhone channel. Unfortunately we're seeing the price floor and ceiling of viable Apps converging at the floor, and I believe it's going to become increasingly difficult for publishers to successfully launch iPhone games at any price greater than $0.99.

App Store Price Erosion Should Be A Wake-up Call For Publishers

Awesome story at The Business Insider highlighting the rapid price erosion that all of us are observing in the iTunes App Store. The average price point of a Top 100 paid Apps has fallen to $2.55 and there are now zero $9.99 Apps in that group. The story speculates that some developers may be making up for lower margins with higher volumes, but they are waiting for feedback from the community. They also, point out that Apple (AAPL) is probably unconcerned about the trend since under their inverse razor blade model they are using content as a loss leader (or perhaps break even) to help move hardware. As I've expressed before, the mobile content industry needs to maintain a healthy level of concern about the growing dominance of the iPhone retail channel, in terms of consumer and industry mindshare, given the divergent business motivations of its owner.

Q4 2008 US Carrier Metrics

Fierce Wireless posted a series of handy metrics today for the tier 1 US carriers...here is a summary of Q4 2008 data with the addition of some Data ARPU numbers I reported earlier:

(Subs & adds in millions)

Could There Be A RIMSoft WindowBerry in Your Future?

Silicon Alley Insider suggested in an article today that Microsoft (MSFT) should purchase Research In Motion (RIMM), while the stock is cheap, if it really wants to be a serious player in mobile. RIM is trading near it's 52 week low at $37.42, down from the $150 range last June. The benefits to Microsoft seem pretty obvious given their inability to get serious traction with their Windows Mobile OS and their limited revenue opportunity per handset as a software only play. The primary benefit to RIM would be the ability to leverage Microsoft's financial resources in order to maintain or grow its position in the increasingly crowded and competitive smartphone market. Interesting idea...but I am very concerned that there could be a painful culture clash in a combined company that could stifle innovation on the device side. If not executed artfully, such a merger could create substantial opportunities for Nokia, Acer, Dell, etc.

Rumors of Sprint's Death Have Been Somewhat Exaggerated

At one time Sprint, now Sprint Nextel (S), was the content thought leader among US carriers and the data ARPU darling. They had a robust, community oriented games deck, innovative music apps and they were the first carrier in the world to stream full length movies over a 3G network. But their 2005 decision to merge with Nextel, which used an incompatible network technology and had a totally different customer base, proved to be an unmitigated disaster. One of the biggest problems was that in an effort to make the Nextel acquisition feel more like a merger management failed to retain many of the key people that had made Sprint a mobile content powerhouse. Frankly, the train has been off the tracks for the last couple of years. They have taken a substantial hit to their customer base, first losing many of their Nextel customers, and more recently core Sprint customers...to the benefit of Verizon Wireless and AT&T Mobility. In their 2008 earnings statement this week they announced they had lost 4.5mil customers during 2008, leaving them with 49.3mil subs. Revs were down 11% from 2007 to $35.6bil with a Net Loss of $2.8bil. But there seems to be some light and the end of the tunnel and many, including myself, think Sprint could be poised for a bit of a comeback in 2009. Here are the factors that could help turn things round at the #3 operator:

• Overall Data ARPU is still strong, in 2008 it was $14.50 and CDMA (core Sprint subs) Data ARPU was $17.75 or 31% of total ARPU...that's substantially better than the $13.99 from Verizon Wireless and $13.50 from AT&T Mobility
• Sprint has an exclusive partnership with Palm for the launch of the Pre...which has the potential to be a rockstar handset
• CEO Dan Hesse has promised to improve Sprint's infamous and much maligned customer service
• Sprint's 4G WiMax rollout (in partnership with Clearwire & Intel) is at least a year ahead of Verizon's 4G LTE initiative, with deployments live in Baltimore and Portland
• Sprint launched Sprint Open Software Platform at the end of last year to help developers expedite the delivery of new services and applications
• Sprint continues to field a solid range of data friendly handsets (including a planned Android device) and have the cheapest premium data plans

All this said, 2009 is a critical year for Sprint if it's going to continue as an autonomous wireless operator. They must continue to cut costs and pare inefficiencies while maintaining investment in the infrastructure (to keep it's data users happy) and elevating it's battered brand profile...all in the shadow of a super-rough economy, in a totally saturated market. No small task for Mr. Hesse.

5 Things To Know Before Liquidating Your 401k To Buy Android Apps

Now that Google has started to accept paid App submissions from developers, and plans to sell the first Apps next week, the most important points from the Android Market Business and Program Policies have been distilled by Google Android blog androinica (say that 5 times fast!):

1) Apps have a 24hr return policy (hopefully this starts a trend)

2) App reinstalls are free (in case you lose or fry your G1)

3) Developer handles updates on Apps...not Android Market (we're just a pipe)

4) No Sexually Explicit Material (probably because there is no age-gating)

5) Disputes over Apps purchases are handled through developer and your credit card company (we're just a pipe)

Not @MWC & Apparently Not Missing Much

OK I'm a little bitter that I'm not in Barcelona...but until my Adsense revenues turn into Adollar$ I am just not going to be flying, hoteling, conventioning and wine/dining/dancing like fool in Spain on my own dime...CTIA in Vegas, maybe. That being said the news out of the show has been pretty unspectacular donchathink?:

• Nokia (NOK) announced it's widely anticipated Ovi Store for applications and announced that it would preload Skype on to upcoming N-Series devices (a move sure to piss off carriers)
• Microsoft (MSFT) announced it's new Windows Marketplace for Mobile available with its new Windows Mobile 6.5 OS (does anyone aspire to have a Windows Mobile device?)
• Besides a new HTC handset for Vodafone, Google's Android has been a total bust.
• RealNetworks (RNWK) took over the backend of Verizon Wireless's V Cast streaming video service from thePlatform
• Qualcomm's (QCOM) MediaFlo is sucking wind in the US and they vow to do things differently in Europe
• Acer and maybe Dell are entering the smartphone fray
• And the biggest story of all...the GSMA announced that 17 carriers and handset manufacturers were going to create a universal phone charger by 2012 (cue Kool & the Gang)
• btw -- where hell has RIM/BlackBerry (RIMM) been hiding?...did they purposely keep a low profile at MWC because of their SEC issues?

Anything else I'm missing?

OMG Apple Killed Kenny!

Fierce Wireless is reporting (citing a Boing Boing story) that iTunes has rejected a South Park clip streaming, wallpaper, news and avatar iPhone App created under the supervision of show creators Trey Parker and Matt Stone, calling it "potentially offensive." Isn't that the whole point of the show?...which, btw is still being sold in episode form on iTunes with its full potential to offend intact.

iShoot Guy Banks $600k in January

Wired reported last week that former Sun Microsystems engineer turned iPhone developer/publisher Ethan Nicholas made $600k this January during which his lone mobile game App iShoot dominated the #1 paid slot in the iTunes App Store. Super-awesome. This guy is on track to out earn many established, well publicized Java (irony alert) games publishers this year...unfortunately most of them won't be around to post 2009 results.

Mobile Titans Espouse Openness at MWC...Not An Onion Post

CNET's coverage of a Walt Mossberg hosted panel at MWC today featuring Microsoft CEO Steve Ballmer, Nokia CEO Olli-Pekka Kallasvu and AT&T Mobility CEO Ralph de la Vega revealed a collective obsessive paranoia about the success of the iPhone/iTunes App Store as a mobile content delivery system. This paranoia is obviously making these guys delusional as they apparently spent much of the panel condemning Apple's closed ecosystem and advocating the virtues of openness and interoperability in the interest of spurring successful innovation in the mobile market...clearly forgetting everything their companies believed prior to the start of the panel.

Gameloft: 200mil Served and Counting..

Kotaku reports that the world's #2 mo'games publisher has sold 200mil mobile games since it opened for business in 2003. From experience I can tell you that the strength of the French publisher is the ability to distribute in every corner of the globe...but that may translate into their average wholesale price per game being lower than some of their competition that focus primarily on North America and Europe. I hope that this announcement compels EA Mobile and Glu Mobile to release similar stats. One note that was interesting/disturbing in the piece is that iPhone/iTunes App Store was Gameloft's biggest single distribution channel in 2008.

Fox Mobile Frustrated With App Store

Great piece on MocoNews.net this morning reviewing a conversation they had with Fox Mobile CEO Mauro Montanaro that captures the frustration many content owners and publishers are having with the world's hottest mobile content distribution platform - iPhone/iTunes App Store. Reinforcing my favorite rant, Montanaro talks about the lack of editorial oversight from Apple and the difficulty in getting applications discovered in the clutter of 15k applications. Montanaro also brings up an interesting issue with regard to marketing...he mentions that Fox is frustrated by their lack of ability to market their iPhone applications either directly on the iPhone (with banner ads) or on other media in a way that is actionable (with shortcodes).

btw -- as a test I'd like to ask readers with iTunes to click on the hyperlinked title that follows and see it opens Fox Mobile's "very successful" licensed Marley & Me application in the App Store: FooPets Marley Puppy

MEF Confident $32bil Mobile Entertainment Biz Grows 27% in 2009

In a release today debuting their quarterly Business Confidence Index, the Mobile Entertainment Forum (MEF) in collaboration with KPMG announced a bullish revenue forecast for 2009 and indicated that employment in the sector would grow or remain stable. Wow, this may be the most upbeat economic news I've read since last summer...let's hope the index proves accurate. The primary sectors driving growth will be:

1. Social Networking
2. Music
3. Video
4. Games
5. Infotainment

2008 Brings Buono Fortuna to Buongiorno

In a pre-close earnings announcement today Milan-based publisher and ondeck/offdeck services provider Buongiorno (BNG) offered a taste of its 2008 financials...

Revs = 315mil euros ($402mil) +80% from 2007

EBITDA = 40mil euros ($51mil)

Growth was driven by their acquisition of iTouch, increase in recurring subs to BlinkoGold services and mobile lottery hosting for Telefonica's Movistar services in Africa & LatAm.

Assuming these numbers hold Buongiorno maintains its #2 position in the mobile content space by revenue behind Spain's ZED.