Apple/Facebook/Google: mobile and OTT strategies and impact

Transcription

1 European Summit 2013: Enabling innovation, driving profitability Apple/Facebook/Google: mobile and OTT strategies and impact 10 October 2013 Ronan de Renesse and Stephen Sale EVENT PARTNER:

2 2 Why is mobile so important? Business models and product strategy Implications for operators

3 3 OTT apps correspond to 35.2% of smartphone usage Average face-time value per smartphone respondent, by category of app 4.6% 9.6% 11.6% 35.2% 39.0% 7.6% 7.0% 6.6% 4.6% 3.7% 3.5% 2.2% Messaging (incl. ) Telephony Browsing Gaming Uncategorised Maps & Transports PIM Multimedia playback Social Networking Utility Other MCA

4 Face time value (minutes per day) Apple/Google/Facebook: mobile and OTT strategies and impact Mobile is the new innovation playground and has become a must-have for Internet companies App categories penetration rate versus average face time value for users of the apps Sports Health Finance Books & magazines News Music IM Commerce Weather Gaming TV and video Social Networking Maps & transport Productivity 0 0% 20% 40% 60% 80% 100% Percentage of smartphone respondents

5 Percentage of respondents Apple/Google/Facebook: mobile and OTT strategies and impact 5 The device/content lock-in snowball effect Monthly smartphone app spend, by type of device ownership 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% Non-tablet owners Tablet owners iphone and ipad owners Figure source: The Connected Consumer Survey 2013: mobile content and applications Unsure More than Less than 2 Never

6 Device vendors need to create and maintain ecosystems that drive multi-device sales 6 Apple TV SMART TV Bravia TV MacBook Apple ipad Blu-ray player Samsung Galaxy Tab PS3 Sony Xperia Tablet Blu-ray player Xperia Phone iphone Notebook Galaxy S Sony VAIO Content Distribution itunes Smart TV content/app store Mobile app store Samsung Media Hub PlayStation Store Sony Entertainment Network Connectivity Airplay AllShare DLNA

7 7 Why is mobile so important? Business models and product strategy Implications for operators

8 ASP (EUR) 12 month ARPU (EUR) Apple/Google/Facebook: mobile and OTT strategies and impact 8 Operators and vendors depend on consumer spend ASP, top 10 vendors by volume, Worldwide ARPU forecast, Europe, All handsets Smartphones All handsets Smartphones

9 1Q Q Q Q Q Q Q Q Q Q Q Q Q Q 2013 Revenue (USD million) ARPU (USD per month) Revenue (USD billion) Apple/Google/Facebook: mobile and OTT strategies and impact 9 Internet companies depend on advertising spend Facebook s revenue and ARPU Google s quarterly revenue split Q Q Q Q Q Q Q Q Q 2013 Mobile advertising Payments and other fees Non-mobile advertising ARPU Motorola Mobile Other Google Network members' websites advertising Google websites advertising

10 Google and Facebook move into mobile is defensive because of fixed substitution 10 Revenue Ad exposure Usage Cost Online 1 Mobile

11 Google aims to capture the mobile experience to boost its advertising revenues Google s value chain positioning Google s service strategy 11 Advertising Google advertising E-commerce Content Google Play content and YouTube Third-party content Apps & services Communications Google Voice, Gmail, Hangouts Google Wallet, Google Shopper Location Google Maps, Google Goggles Apps and services Google apps and services Third-party apps and services Google+ Operating systems Devices Android-powered devices Devices with other operating systems Google Search

12 12 Facebook s universe is full of revenue opportunities Businesses Consumers Facebook Pages Places, Events Like Comment Facebook advertisements Advertisers Facebook Gifts Facebook In-app advertising Consumers Facebook Platform and Facebook Marketplace Developers Distribution/reach Money flow

13 13 Why is mobile so important? Business models and product strategy Implications for operators

14 14 Operator feature sets look increasingly weak against alternative services driven by new business models Figure: Communication services business models [Source: Analysys Mason, 2013] Player Core business Feature set Voice Messaging Video Location Social Comms business model Hardware Indirect Advertising Indirect Advertising Indirect Software licensing Moving to indirect Communication services Direct Content distribution Indirect MNOs Communication services? Direct

15 15 Operator responses Block OTT services Stimulate usage Partner with OTT providers Offer RCS Offer telco OTT

16 16 Open questions Do-It-Yourself (DIY) model Partnership model In-house development vs outsourcing? Should it be seen as a revenue opportunity? What sort of ROI can be expected? Win/Win partnerships? Local versus group strategy? Are exclusive partnerships important?

17 17 Contact details Ronan de Renesse Principal Analyst Stephen Sale Principal Analyst Boston Tel: Fax: Cambridge Tel: +44 (0) Fax: +44 (0) Dubai Tel: +971 (0) Fax: +971 (0) Dublin Tel: +353 (0) Fax: +353 (0) Edinburgh Tel: +44 (0) Fax: +44 (0) London Tel: +44 (0) Fax: +44 (0) Madrid Tel: Fax: Manchester Tel: +44 (0) Fax: +44 (0) Milan Tel: Fax: New Delhi Tel: Paris Tel: +33 (0) Fax: +33 (0) Johannesburg Tel: Fax: Singapore Tel: Fax: