Nokia’s move into music is logical
What comes to your mind when you talk about the $159.9 billion
Finnish giant Nokia? Obviously handsets, right? Yes, and that its ride in this regard of late has been wonderful is undeniable (with a global market share of 32.6% being proof). However, there is much beyond just handsets that this Finnish giant is in for these days. Putting words to practice comes its latest revelation to move into unlimited music downloads to its subscribers in collaboration with Universal group, through a venture called ‘Comes with Music’ announced on December 2, 2007. So is this move well-toned with the changing scenario in the cellphone industry?
Certainly, as Jeff Kagan, a telecom expert notes, “The cell phone industry continues to go through enormous change and growth and the wireless phone is growing past a phone. The next several years will be full of these types of announcements.” Alternatively, with the venture (which will become operational in 2008) guaranteeing Nokia upto $5 billion in added revenues on an annual basis, the strategy appears logical as Mike Grant, Head, Broadband and Media, Analysys Inc. asserts, “With this announcement, Nokia has stepped out ahead of the rest in bridging the divide between mobility and the Internet. Should Nokia successfully execute these developments and attract even a small proportion of their current 1 billion customers to this service, other operators and OEMs will have a mountain to climb to offer the same compelling proposition.” Surely, Nokia is laying down the gauntlet and moving away from being a pure device play into an integrated end to end consumer service organisation in the mould of Apple, or perhaps even bigger and better than Apple in the business as Grant asserts, “Nokia’s global market reach and scale make it a powerful competitor to all in this space, while Apple has a strong presence only in the US.”
Surely, Nokia’s has expertly diversified its revenue streams during the past couple of years. Its focus on software as its core strategy, unlike other phone manufacturers will enable it to ride into sectors that are inherently software focused, such as mobile web services and other services including music et al. And this radical strategic move automatically pushes Nokia up the value chain. With revenues for Q4 2007 estimated to touch $21,123.4 billion, representing a rise of 63.77% over Q3 2007 this move is all but a clear case of successful bundling; all to please its consumers. Enough reasons why it should be the market leader in this regard.
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Source : IIPM Editorial, 2008
What comes to your mind when you talk about the $159.9 billion
Finnish giant Nokia? Obviously handsets, right? Yes, and that its ride in this regard of late has been wonderful is undeniable (with a global market share of 32.6% being proof). However, there is much beyond just handsets that this Finnish giant is in for these days. Putting words to practice comes its latest revelation to move into unlimited music downloads to its subscribers in collaboration with Universal group, through a venture called ‘Comes with Music’ announced on December 2, 2007. So is this move well-toned with the changing scenario in the cellphone industry?Certainly, as Jeff Kagan, a telecom expert notes, “The cell phone industry continues to go through enormous change and growth and the wireless phone is growing past a phone. The next several years will be full of these types of announcements.” Alternatively, with the venture (which will become operational in 2008) guaranteeing Nokia upto $5 billion in added revenues on an annual basis, the strategy appears logical as Mike Grant, Head, Broadband and Media, Analysys Inc. asserts, “With this announcement, Nokia has stepped out ahead of the rest in bridging the divide between mobility and the Internet. Should Nokia successfully execute these developments and attract even a small proportion of their current 1 billion customers to this service, other operators and OEMs will have a mountain to climb to offer the same compelling proposition.” Surely, Nokia is laying down the gauntlet and moving away from being a pure device play into an integrated end to end consumer service organisation in the mould of Apple, or perhaps even bigger and better than Apple in the business as Grant asserts, “Nokia’s global market reach and scale make it a powerful competitor to all in this space, while Apple has a strong presence only in the US.”
Surely, Nokia’s has expertly diversified its revenue streams during the past couple of years. Its focus on software as its core strategy, unlike other phone manufacturers will enable it to ride into sectors that are inherently software focused, such as mobile web services and other services including music et al. And this radical strategic move automatically pushes Nokia up the value chain. With revenues for Q4 2007 estimated to touch $21,123.4 billion, representing a rise of 63.77% over Q3 2007 this move is all but a clear case of successful bundling; all to please its consumers. Enough reasons why it should be the market leader in this regard.
For Complete IIPM Article, Click on IIPM Article
Source : IIPM Editorial, 2008
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they have allowed these products to be traded in India. If the trading environment is open, global investors would always prefer to trade derivatives in the home market and this psychological advantage is sought to be converted to a real one,” says Rajiv Shastri, Head – Business Development and Strategic Initiatives, Lotus India Mutual Fund.
vision in direct response to movement of certain body parts, such as the head or hands. Turn the head, and the scene shifts accordingly. The sensation is like being inside an artificial world the computer has created. As the user moves his head to look around, the images shift to create an illusion of movement. The user moves while the virtual world is standing still. The glasses also sense the user’s facial expressions through embedded sensors, and that information can control the virtual version of the user’s body. Most current VR systems provide only visual experiences created by computer-assisted design or other graphics/animation systems, but researchers are working on interface devices that add sound and touch. Experts agree that MMORPGs are our current epitome of VR. Various technologies (communications, AI, computing, interface) will affect us, and together these will shape society in the future. Eventually, VR may be delivered through direct computer-to-brain connections. This means that you could probably “jack-in” to a virtual world using a mechanism that connects the world with your brain. Sounds familiar? Yeah, that’s what the characters in the movie Matrix did all the time.
will bring to Hollywood? Industry experts believe that production houses like Big Motion Pictures, UTV, Percept Pictures, et al, can bring a lot of differentiation to Hollywood in terms of content. They will bring Asian perspective in American movies, which can make them more appealing. More importantly, they will bring a lot of cost benefits to Hollywood, which is very much needed at this point of time, when the US economy is going through a lean period. However, one question that is troubling the experts is: will these Indian production houses be successful in their Hollywood stint? “It’s better for them (Indian production houses) to start with co-productions and that’s exactly what they are doing,” says a media analyst. Tying-up with Hollywood studios like George Clooney’s Smokehouse Productions, Tom Hanks’ Playtone Productions, Brad Pitt’s Plan B Entertainment, Chris Columbus’ 1492 Pictures, Nicolas Cage’s Saturn Productions, et al, will make them understand the market better. Whatever they do, the road to Hollywood will not be an easy one as Publicis’ Gupta feels, “America is very America-centric… The perceived notion of low quality for any product from a third world country may create some initial hurdles for them.” Be that as it may, the ‘big’ money lies overseas only. And if the corporate production houses need to compete with their global counterparts then the only way for them is to think local but act global!
a few intelligent ones like RPG Cellucom have latched on to an innovative business model to succeed in the mobile retail sweepstakes. In Feb. 2008, RPG Cellucom launched their own private labels for mobile accessories, willing to make additional profits through this route. Says Singh, “Our core target audiences are the tech-savvy people and we would continue to leverage through cross-selling and up-selling of our offerings.”
side and are major deterrent to big deals. Besides, apart from M&As, companies are also on a lookout for brand acquisitions to enhance their presence in respective therapeutic segments,” reasons Nangra. Also, with concerns related to economic slowdown and a history of failed overseas acquisitions, Indian companies now seem to have realised that though it’s exciting to buy big companies abroad, the real synergies are hard to achieve. Moreover, the competition from small generic drug-makers has stiffened too forcing these big pharma companies to re-think their strategies. “Develop new business models… on the basis of strengths & revenues – this is the most important factor that will decide the competitiveness and sustainance of Indian companies in the future,” agrees Dr. R. B. Smarta, MD of Interlink, a pharma and healthcare consultancy. Even Sujay Shetty, Associate Director, Financial Advisory Services Pharma & LifeSciences, PwC shares the same view. “This will not only provide the required size and expertise to the domestic companies (so that they can compete globally) but will also certainly improve efficiency; provide economies of scale; and strengthen their product portfolio, eventually benefiting the industry as a whole.”
outsourcing which would have been a cheaper option for these companies. Tim Sarnoff, President Sony Pictures Imageworks, reason, “This way we would have a better control over the output of the product. Also, our staff in Culver City (Los Angeles) and India can work on different parts of the same projects making use of the same kind of infrastructure…” There are also some other advantages that these companies would be looking at gaining. With the boom that has been there in the animation scenario, there is plenty of trained staff that would be working at almost less than half the price. Well, it would mean higher investments now, but the bigger studios would now be looking at churning out greater outputs. Hence, in the long run, they would be able to save greater costs.
space, with channels like Meow from Radio Today’s stable. The channel flaunts the idea of being the first and the only radio channel for women. “Going by the international trend, niche radio stations have a bright future in India, provided some policy changes are incorporated like multiple frequency allotment to every player,” says S. Keerthivasan, Business Head, Fever 104 FM. Agrees Anil Srivatsa, COO, Radio Today, “Niche radio will affect mass radio channels a lot because people will move on to specialised channels and hardly any audience will be left over for general channels.” Industry veterans believe that keeping in mind India’s diversity, niche stations can even be in regional languages, news focused, sports centric, business news driven, or even themed on the various music genres (rock, pop, jazz or classics), a la World Space on FM. Media planners agree that the expansion into niches will make business sense too as the advertising pie for the entire medium will expand substantially. They add that niche stations will also boost the entry of non-traditional advertisers on the radio bandwagon.