Monday, July 10, 2006

M:Metrics: WILL SMARTER PHONES DRIVE CONTENT CONSUMPTION?

M:Metrics' May Benchmark Surveyfound that "while smart-phone owners comprise a small percentage of the overall population of mobile phone users, large percentages of smart-phone users are consuming mobile content. Contrary to popular belief, those carrying these powerful devices are not using them exclusively for productivity applications, but are also using them to view mobile video, play mobile games and listen to mobile music in addition to using them for personal e-mail and wireless Web access."

M;Metrics noted that "compared to the average mobile phone subscribers, smart-phone owners are avid users of mobile multimedia. In France and Germany, nearly half of smart-phone owners sent video or a photo over the network, compared with a market average of 18.6 percent in France, and 19.5 percent in Germany. Nearly a quarter of UK smart-phone owners reported listening to music on their handset, versus the average of 5.8 percent. The parallels are similar across the geographies. French smart-phone owners are a staggering 11 times more likely to listen to music on their handset compared with the market average of 1.7 percent, while their American counterparts are more than eight times more likely to do so."

In addition, "video has been particularly popular among French smart-phone owners, at 15.1 percent, versus a countrywide average of 1.8 percent. There is also a relatively high conversion rate to video among U.S. smart-phone owners, who are more than six times more likely to watch video than a random subscriber, as the U.S. average for video consumption is 1.3 percent."

Seamus McAteer at M:Metrics said, "Whereas mass-market Symbian devices have flooded the European market, the smart-phones in the hands of most U.S. consumers are high-end devices produced by Palm (PALM) and RIM (RIMM) that are targeted to appeal to mobile professionals concerned with personal productivity. The Motorola (MOT) Q, which is being marketed heavily as a stylish device that's fun as well as productive, and is being offered at consumer-friendly price points, could help broaden the market for smart-phones and spur content consumption."

The firm found that "at two percent penetration, the U.S. lags Western Europe in Smart-phone ownership. Britain tops France and Germany, at 6.6 percent market adoption. All the top three devices in France, Germany and the United Kingdom are Nokia devices. The Palm Treo is the smart device of choice for Americans, followed by the BlackBerry."

Most Popular Smart-phones Used as Primary Handset
Top 3 Smart-phones - FranceSubscribers
Nokia 6680374,477
Nokia 6630287,723
Nokia 660098,122
Top 3 Smart-phones - GermanySubscribers
Nokia 6630278,818
Nokia 6600250,682
Nokia 7650237,449
Top 3 Smart-phones - UKSubscribers
Nokia N70471,874
Nokia 6680433,405
Nokia 6630341,718
Top 3 Smart-phones - USSubscribers
Palm Treo 650CDMA573,660
Palm Treo 650GSM269,053
RIM BlackBerry 7520267,912
Source: M:Metrics, Inc., Copyright © 2006. Survey of mobile subscribers. Data based on three-month moving average for period ending 31 May, 2006, n= 12,631 French, n=15,122 German, n=14,913 UK, n=33,952 U.S. mobile subscribers.

Paul Goode at M:Metrics said, "Without a doubt, Symbian devices compel their owners to use mobile content. Varying by networks in the UK, 45 to 70 percent of N-70 users report that they used their phone to download or browse for content. We're seeing impressive conversion rates across all forms of mobile content among users of these handsets, and see a direct correlation between device attributes (screen size, screen resolution and network speed) and propensity to consume content."

French Mobile Subscriber Monthly Consumption of Content and Applications
M:Metrics Benchmark Survey: May 2006
ActivitySubscribers (1000s)PctPct Change
Sent Text Message29,35569.1%0.7%
Used Photo Messaging7,91918.6%8.1%
Browsed News and Information3,3197.8%7.6%
Purchased Ringtone2,7486.5%(3.4%)
Used Personal E-Mail2,5486.0%11.6%
Purchased Wallpaper or Screensaver1,3133.1%(0.6%)
Used Mobile Instant Messenger1,2412.9%7.9%
Used Work E-Mail8572.0%9.7%
Downloaded Mobile Game5001.2%13.9%
Source: M:Metrics, Inc., Copyright © 2006. Survey of French mobile subscribers. Data based on three-month moving average for period ending 31 May, 2006, n= 12,631

German Mobile Subscriber Monthly Consumption of Content and Applications
M:Metrics Benchmark Survey: May 2006
ActivitySubscribers (1000s)PctPct Change
Sent Text Message35,60680.0%2.6%
Used Photo Messaging8,69619.5%4.0%
Purchased Ringtone3,0076.8%(0.2%)
Used Personal E-Mail2,7166.1%0.4%
Browsed News and Information1,7634.0%(3.5%)
Used Mobile Instant Messenger1,5473.5%(0.9%)
Used Work E-Mail1,3993.1%3.8%
Purchased Wallpaper or Screensaver1,2892.9%0.2%
Downloaded Mobile Game1,0792.4%1.6%
Source: M:Metrics, Inc., Copyright © 2006. Survey of German mobile subscribers. Data based on three-month moving average for period ending 31 May, 2006, n= 15,122

U.K. Mobile Subscriber Monthly Consumption of Content and Applications
M:Metrics Benchmark Survey: May 2006
ActivitySubscribers (1000s)PctPct Change
Sent Text Message36,35984.6%(0.1%)
Used Photo Messaging12,87930.0%1.6%
Browsed News and Information6,37614.8%(1.1%)
Used Personal E-Mail2,8926.7%0.0%
Purchased Ringtone2,5626.0%(6.6%)
Downloaded Mobile Game1,9534.5%(4.9%)
Used Mobile Instant Messenger1,7544.1%1.4%
Used Work E-Mail1,3373.1%3.9%
Purchased Wallpaper or Screensaver9942.3%(2.4%)
Source: M:Metrics, Inc., Copyright © 2006. Survey of U.K. mobile subscribers. Data based on three-month moving average for period ending 31 May, 2006, n= 14,913

U.S. Mobile Subscriber Monthly Consumption of Content and Applications
M:Metrics Benchmark Survey: May 2006
ActivitySubscribers (1000s)PctPct Change
Sent Text Message69,04836.3%5.9%
Used Photo Messaging22,64411.9%8.0%
Browsed News and Information19,03810.0%5.4%
Purchased Ringtone18,8309.9%4.0%
Used Personal E-Mail13,8237.3%7.2%
Used Mobile Instant Messenger12,2216.4%4.6%
Used Work E-Mail7,9844.2%8.4%
Purchased Wallpaper or Screensaver6,6093.5%(1.8%)
Downloaded Mobile Game4,8402.5%8.5%
Source: M:Metrics, Inc., Copyright © 2006. Survey of U.S. mobile subscribers. Data based on three-month moving average for period ending 31 May, 2006, n= 33,952