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Non Stop Music Non Stop Revenues

Non Stop Music Non Stop Revenues

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Non Stop Music Non Stop Revenues

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  1. Non Stop MusicNon Stop Revenues Dan BOABES General Manager Simplus - Romania

  2. Who we are? • Simplus - part of the ParlaTel Group, dedicated to innovative mobile applications • ParlaTel is a Holding Group of companies, one of the main alternative telecom operators in Romania • ParlaTel lines of business: • fixed telephony • -ISP • -Value Added Services (Premium SMS, Premium IVR)

  3. About Simplus • Simplus – mass mediae - revenue share collaborations • Contracts with 8 national TV stations OTV

  4. Strategy - I • Focuse to specialised TV channels: • Music channel – no. 1 • Music channel – no. 2 • Sports channel – no. 1 • News Channel – no. 1

  5. Strategy - II • Continuous innovation and new services: • Music dedications – Dec 02 • SMS chat – Jan 03 • SMS voting – Feb 03 • Premium IVR – March 03 • Ring-tones – Jun 03 • SMS News – Jul 03 • M-payment – Aug 03 • TV Chat – Sep 03 • Integrated SMS/IVR app – Dec 03 • SMS Games – Feb 04

  6. Romanian music channels Notes: 1 – One rating point = 1.2 million viewers; prime time, Dec 03 2 – According to IMAS study – March – May 2004

  7. Killer applications • Music dedications • Hangman • M-payment • TV SMS Chat “Killed” applications • One2One SMS chat • Ring-tones • Integrated IVR/SMS applications

  8. Killer applications • Music dedications • Description: • SMS messages are received by Simplus servers from the mobile operators • Messages are filtered – automatic (bad words list) and manual (screening by human agents) • Messages are delivered to the broadcast equipment • Text is displayed as a crawling text • Non-stop service

  9. Reasons for success • Music dedications • Non-stop service • Easy to use and understand • Occasions throughout the year (Christmas, Easter, St Valentine’s Day, Birthdays etc) • Almost no human intervention • People instantly receives nationwide exposure (“egocentric”)

  10. Killer applications • Hangman • Description: • The user sends a keyword (“Hangman” –eg.) to a PSMS short code • The system delivers the word to be discovered • (“H - N - - - N”) • The user sends letters and receives a number of points for each discovered word • Video

  11. Reasons for success • Hangman • - Non-stop service • Easy to use and understand – people are already accommodated with the game • No human intervention • Players receive their rank after each play (by SMS and website) • Weekly prizes for top players • Low cost/message, high number of repetitive plays • 50% of traffic is made close to the deadline (last 24 hours) as players compete for top positions • Fair play system (players have all info, no cheats or tricks)

  12. Killer applications • M-payment • Description: • The user sends a a high value SMS (1$ - 3$ / SMS) with a code associated with the ordered services • The system delivers a code for payment confirmation • The user uses the purchased service: dial-up access, website access, personalized horoscope, personals etc. • Video

  13. Reasons for success • M-payment • - Non-stop service, comfortable use • Easy to use • No human intervention, completely automatic • Nationwide delivery (Internet dial-up throughout the country etc) • Fair pricing • Easy to adapt data-mining procedures (tracking users purchasing behaviors, monitoring usage a.s.o) • Exploit “other party pays” concept

  14. Killer applications • TV SMS Chat • Description: • The user sends a a low value SMS to a short code • The message is displayed in a chat window on TV during night hours • A host proposes discussion subject and manages the show content • Messages are filtered for badwords and phone numbers

  15. Reasons for success • TV SMS chat • - Easy to use • A well known working principle (users are already accommodated with the web chat) • Host can keep alive and encourage conversations • Constant traffic as chatter community is built • Fair pricing (low cost) • Real time (caution: sensitive to technical flaws on the communication chain)

  16. “Killed” applications • One2One SMS chat • Customer perceives no benefit • Other alternative methods of communications at lower cost • Ring-tones • Difficult to use (codes usage, various phone types etc.) • Integrated IVR/SMS applications • Too complex procedure

  17. Success pattern • - Non-stop service • Easy to use • Completely automatic (“humans bring errors”) • - Fair mechanism (users feel served, not cheated) • Instant usage • Adequate awarding to foster competition (prizes)

  18. About failures • - There is no universal success recipe • Cultural adaptations needed (the success of a certain could vary widely from country to country) • Simple mechanism, use simple advertising messages • “Try and error” – unavoidable; previous experience counts • Some services have a short lifetime (e.g.: sms-games) of several months compared with music dedication (several years)