Innovating in Mobile

Lessons learned from a decade of mobile content

Andrew BudGlobal Chair, MEF

Founder & CEO iProov

Tel Aviv, 10th June 2013

A Dozen Years of Mobile Content

• 1997 First ringtone services in Finland

• 2000: Yourmobile.com creates global ringtone demand• 2001: First premium rate services in Sweden• 2003: Ringtone business explodes in Europe• 2004: $12bn industry; US off-portal begins, Crazy Frog !• 2005: Crazy Frog scandals and No 1 hit• 2006: First Class Action suit in US• 2007: $35bn industry; iPhone launch• 2008: Apple App Store Launch• 2009: Android Market Launch• 2010: Angry Birds phenomenon

What did we learn?

• Consumers define markets

• Scalable Iteration discover markets

• Simplicity drives markets

• Greed destroys markets

Consumers Define Markets

Cute intersection of

two great industries

Entertainment ($500bn)

Mobile ($1000bn)How the suppliers saw it…….

Consumers Define Markets

How the consumers saw it…….

$35 billion

Consumers Define Markets

WHY DID YOU PURCHASE ITEMS ON YOUR MOBILE PHONE?

The market is changing….

MEF Global Consumer Survey 2013: 9,500 consumers in 10 countries

Scalable Iteration Discovers Markets

Consumer response

$$$$

48 hour response to experiment results

Content, pricing, promotion, design

Scalable iteration created an industry

Simplicity Drives Markets

• Six clicks from desire to purchase….

• …enabled by one-click billing

• Make it simple, make it easy…

• ….and charge for it

Italian Mobile Content Market

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Source:Politecnico di MilanoOsservatorio Mobile Content & Internet

…but not too simple!

Comfortable transaction complexity

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Too simple

Too complicated

Ringtone subscriptionsKids' In-app purchases

Mobile content before operator billing

Greed Destroys Markets

• This is what happened next….

• Some people made lots of money very fast even after the market declined

• Destruction of consumer confidence was swift and fatal

• UK, Italy, US, Indonesia, Brazil – retribution followed complicity

• Is it about to happen again?

Italian Mobile Content Market

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2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

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Subscription business model begins

Bad practices emerge

MEF Global Privacy ReportConsumer Trust & Confidence is a Key Issue

MEF Global Privacy ReportConsumer Trust & Confidence is a Key Issue

33%

MEF Global Privacy ReportConsumer Trust & Confidence is a Key Issue

A near-miss:this time….

…but it’s not going away

$ 00,000,000s

Join us in solving this!

Lessons from Mobile Content

Winners win because they:

• Meet consumers’ desires• Make it super simple to transact• Scale by charging and promoting• Adapt and innovate fast• Don’t cheat the customers