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Wednesday, January 19, 2011

What difference will the Amazon and LOVEFiLM deal make to the mobile industry?

Mark Bridge writes:

If you’ve read any of the tech press today you’ll have seen that Amazon.com is buying LOVEFiLM. Yes, that really is how the company writes its name. Amazon already had quite a collection of LOVEFiLM shares, so it’s really just buying the remainder.

LOVEFiLM, in case you’ve missed the TV ads and online promotions, does DVD rental by post and also streams video over the internet. Oh, and it does games rental as well.

Needless to say, both companies have issued statements saying how great it is for them and their customers. “We look forward to a productive and innovative future”. “We can significantly enhance our members’ experience across Europe”.

But what does all this mean to the mobile industry?

Well, Pocket-Lint.com has interviewed LOVEFiLM CEO Simon Calver and Amazon VP of EU retail Greg Greeley in an article headlined “Lovefilm and Amazon to bring movies to your phone”. Although neither man explicitly says they’re planning this, it certainly seems an obvious next move for the online side of the business.

In fact, if you’ve been following the LOVEFiLM Twitter feed, you’ll know that just yesterday the company Tweeted “We have a number of exciting developments underway for mobile devices in 2011, more news available soon” in reply to a question.

However, the idea of streamed movies on smartphones – as opposed to downloads – raises the usual questions about data. LOVEFiLM (the novelty of that lower case i is starting to wear thin!) says an average video stream over your home broadband will transfer approximately 500MB of data for a 90 minute film. That’s your entire T-Mobile ‘fair usage’ allowance for a month.

Is that realistic for mobile devices?  Well, US-based video streaming service Netflix – arguably one of the reasons Amazon decided to snap up LOVEFiLM – has an iPhone and iPad application. A quick look at various online figures suggests the ‘500MB per film’ figure sits somewhere towards the higher end of individual mobile experiences.

It’s possible to adjust video quality (and therefore data usage) based on connection speed and type, so the cost of video streaming needn’t be quite as scary as it first seems.

Yet without higher or truly unlimited mobile data allowances, it’ll still be a luxury to download full-length movies to mobile phones.

Will the Amazon and LOVEFiLM deal affect the mobile industry?  Almost definitely, I’d say. Will it make a big difference?  It’s much harder to answer that one.

With current tariffs, I’d say no. But just imagine a colour-screen Kindle with the same kind of inclusive mobile data deal available on the company’s current eBook reader. Watch out, iPad – the LOVEFiLM tablet could be on the way!

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Opinion Articles

The art of accessory sales is changing

Mark Bridge writes:

We're told it's not merely 'sales'. No, it's an art. "The art of selling". And with over 4 million hits on Google, you could easily argue that the art of selling is more popular than painting.

The same goes for the two sub-categories of cross-selling and up-selling. They're arts as well, you know. Mystic and creative disciplines...

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Secure mobile phone calls explained

The security of 3G and GSM mobile phone calls has been questioned recently. Mark Bridge spoke to Dr Simon Bransfield-Garth, Chief Executive of Cellcrypt, at Mobile World Congress to find out how real the problems are. The interview was included in our podcast on 19th February 2010; here's an edited transcript of the interview:

Author: The Fonecast
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‘The App is Dead. Long Live the App’ at Mobile World Congress

James Rosewell writes:

Apps (defined as games, information services, social networking video and web content among other things) dominated MWC10 with debate focused on the provision of radio network capacity to support them, the technologies used to create them and the methods for Mobile Network Operators (MNOs) to monetise them. Given the fragmentation in technology and the investment needed from MNOs to provide capacity coupled with a lack of reward for MNOs, we would be forgiven for thinking the App as we know it is not long for this world. However new technologies offering broader platform support, plus smart network investment coupled with new business models, mean the App will evolve and come of age ready for 2011.

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Windows Phone 7 Series at Mobile World Congress

Mark Bridge writes:

We queued in the rain outside the Catalonia Barcelona Plaza hotel. We sat on the floor in a basement room. And we watched on TV as Steve Ballmer announced Windows Phone 7 Series.

The life of a reporter is not a glamorous one.

Author: The Fonecast
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HTC Smart could start a smartphone price war

Mark Bridge writes:

I’ve previously talked about a report from 2009 which warned how touch-screen phones that weren’t true smartphones were pushing down ARPU. Consumers thought they were buying something that was relatively advanced but were being seduced by form over function.

This week HTC stepped in to the arena with the HTC Smart, described by HTC's Peter Chou as "a more-affordable smartphone". Although it may not fit everyone’s definition of a smartphone, it certainly ticks most of the boxes. It has an open operating system, Qualcomm’s Brew platform, which has over 18,000 available applications and has been installed on over 1200 handset models worldwide.

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Recent Podcasts

Reviewing our 2015 mobile industry predictions... and looking forward to 2016

Podcast - 15th January 2016

Iain Graham, James Rosewell and Mark Bridge return to review their mobile industry predictions from last year. Which mergers, partnerships and developments did they forecast correctly... and which didn’t work out as planned?

Later in the programme, the team anticipates some of the topics that will be hitting the headlines during 2016.

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Podcast from Mobile World Congress 2015

Podcast - 6th March 2015

Mark Bridge learns about the mobile technology trends at Mobile World Congress 2015 by chatting to James Rosewell of 51Degrees, Dr Kevin Curran from the IEEE and Chris Millington of Doro.

They talk about wearable devices, wireless charging, mobile operating systems and much more... including some of their favourite products from the exhibition.

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Looking back at February: from security scares to multiple MVNOs

Podcast - 27th February 2015

We're taking a look back at the biggest mobile industry news stories from February 2015, including allegations that the UK's security service tried to breach SIM card security by hacking into one of the world's biggest SIM producers.

We also talk about the planned BT and EE merger, the creation of two new UK virtual networks, some acquisitions in the mobile payment arena and a new Ubuntu smartphone.

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Interview with Chris Millington of Doro about mobile retailing, wearables and technology for older consumers

Podcast - 24th February 2015

In today's programme Mark Bridge talks to Chris Millington, who's Managing Director for Doro UK and Ireland.

They discuss the state of mobile retailing in the UK, the future of wearable devices and - as you might expect - smartphones for seniors.

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A month of mobile: O2 counts on 3, Microsoft counts to 10 and Apple counts its profits

Podcast - 30th January 2015

We're back with a month of mobile industry news, including takeover talks and takeover rumours. O2 and Three are said to be discussing a merger... but is there any truth in the suggestions that BlackBerry could be up for grabs?

We also discuss Apple's record-breaking quarterly figures, the highlights of CES and the launch of Microsoft Windows 10, as well as saying farewell to the current version of Google Glass.

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