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Roaming With...Ed Lange
By Ed Lange, Vice President, Sony Connect Mobile & Head of Mobile Initiatives for Sony Corporation
of America
When a new technology causes a change in consumer behavior, it is often referred to as disruptive. And while there is considerable debate around the actual meaning of disruptive technologies, one cannot escape the undeniable fact that with the creation and commercial adoption of the internet and mobile phones, communication between people has been dramatically altered. As continual advances in cellular technologies, data services and mobile phones arise, the potential for yet another disruption is imminent. This time the impact from such technologies such as WiFi and portable entertainment devices will extend far beyond peer to peer communications. Consumers will fundamentally change the way they interact in larger group settings, publish and consume digital content and stay connected to their social networks. Hence, the beginning of what could be called “Impulse Entertainment.”
Impulse Entertainment will be driven by a new breed of consumer who expects entertainment, content, information and communication – anytime, anywhere, anyplace. These users will require an integrated approach to how they consume services, thereby creating a need for a different kind of focus on mobile entertainment at large media and telecom companies.
We are already seeing progress in the industry. Mobile entertainment has transformed from a motley assortment of company side-projects into a substantial and credible marketplace. Ringtones sowed the seeds for a closer look at entertainment consumption on mobile phones proving that entertainment as personalization was a winning strategy for near term revenue. The success of the ringtone market has inevitably led to questions about what further business models could exist for the ongoing consumption of multimedia content. While a significant amount of revenue is being generated from the sale of personalization content, large media and entertainment companies are taking notice of the potential for a new, broader digital mobile ecosystem. Early examples at Sony include the quick adoption of movies on UMD that play on the PlayStation Portable (PSP) and the sale of Sony Pictures movies on memory cards that work with mobile phones.
In today’s environment, users will add to, or eventually replace, current consumption models with mobile services and portable devices. As the digital economy merges with the mobile market, companies such as Sony are increasingly motivated to make large investments that go beyond current licensing deals, product offerings and device sales. Sony sees the big picture – the power of a converged mobile and internet industry meeting the needs of an increasingly transient and demanding consumer base that desires constant interaction, not mere fashion statements. Sony believes that mobile “impulse entertainment” will grant users instant gratification, providing the ability to access relevant digital content and services through their mobile devices the minute they desire it.
According to M:Metrics, slightly more than 15 million American wireless users are very or somewhat likely to subscribe to a mobile music service. The same survey, conducted in September, 2005, indicates more than 22 million American wireless users are very or somewhat likely to transfer music from a computer to a mobile device, and that more than 262,000 Americans did so in the month of the survey.