THE SUPPLY AND DEMAND EQUILIBRIUM – SATISFYING THE MOBILE USER WANTS IN
MUSIC CONTENT
Oye AKIDEINDE May 19, 2015
@oyeakd #DECAfrica2015
I did not choose this JAMB Question TOPIC
we are about to talk about.
• Some Content, Images & video clips for this presentation were copied from the web. No copyright infringement was intended.
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DISCLAIMER
WHO AM I? OYE AKIDEINDE
• aka the Music Man aka Oye A.K.D.
• Co-founder, 360nobs.com & 360Delivery
• GM, Digital Music, TECNO Mobile
• Collects Music, Movies & Comics
• Diehard ManUtd & Dodo Lover • http://ng.linkedin.com/in/
oyeakideinde
Nigeria’s Top 50 Songs (1960-2010) – The Complete Music Countdown http://www.360nobs.com/2010/10/nigerias-top-50-songs1960-2010-the-complete-music-countdown/
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ABOUT • 360NoBS = Everything No BS • 360Nobs.com is an online all round entertainment & lifestyle
website with all the latest news & information. • Voted As Nigeria’s Best Collaborative & Entertainment
Blog – http://nigerianblogawards.com/2013-nigerian-blog-awards-winners/ – http://nigerianblogawards.com/details/the-winners-2011-nigerian-blog-
awards/ • Does over 4million authorized promotional mp3
downloads monthly via its mobile version of the website • The 360nobs.com Music Charts are the longest running
online Charts in Nigeria using authentic and actual data provided by users when downloading Nigerian songs & viewing videos.
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ABOUT TECNO OOMPLAYER
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It’s time to find your favourite music easily on your phone
ABOUT TECNO OOMPLAYER
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To build the
largest digital
music platform
in Africa with a
focus on
African music!
To build the
most
sustainable
digital music
ecosystem for
African artists.
THE FIRST MOBILE PHONE 1973: With a prototype of the DynaTAC (DYNamic Adaptive Total Area Coverage) portable phone, former Motorola Vice President Martin Cooper made the first private, practical mobile phone call in a non-vehicle setting. • Who did he call? His rival at Bell
Labs, Joel S. Engel.
1983: 10 years later after the prototype, Motorola's DynaTAC cellular phone was commercially made available to the public, weighing under 2 pounds, but costing about $4,500.00
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WHAT WAS THE FIRST PORTABLE MUSIC
PLAYER?
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HINT: Seen in X-Men: Days of Future Past with Quicksilver
THE FIRST PORTABLE PERSONAL MUSIC PLAYER 1972: The Stereobelt was the first portable personal stereo audio cassette player. • It was invented by the German-
Brazilian Andreas Pavel. • The Stereobelt was the ancestor
of the Walkman and modern-day iPod.
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THE FIRST COMMERCIALLY AVAILABLE PORTABLE PERSONAL MUSIC PLAYER
1979: Sony released the Walkman - portable audio cassette players • The Walkman introduced a change in music listening habits by
allowing people to carry music with them and listen to music through lightweight headphones.
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THE FIRST COMMERCIALLY AVAILABLE PORTABLE DIGITAL MUSIC PLAYER
1983: Sony partnered with Philips to create the D-50 which became commonly known as the Discman. It played compact discs and was the first portable digital music player.
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TECHNICALLY, THE FIRST COMMERCIALLY SMARTPHONE
1993: Perhaps the world's first smartphone, IBM Simon was a mobile phone, pager, fax machine and PDA, all rolled into one. It included a calendar, address book, clock, calculator, notepad, email, gamers and a touchscreen with QWERTY keyboard. It was sold for $899
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THE FIRST MOBILE PHONE WITH AN IDENTIFIABLE RINGTONE OTHER THAN “RING RING” 1994: Nokia 2100 – 1st phone with the “Nokia tune” • There are a number of happy
accidents of history in the mobile phone story in terms of successes that nobody foresaw.
• One of those happy accidents was the mobile ring tone bonanza.
• Without doubt its foundation was laid by Nokia with their introduction of the Nokia tune.
• It was the first identifiable musical ring tone on a mobile phone and in this regard the Nokia 2100 was game-changing mobile phone for the industry and consumers.
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1996: The first commercial mobile phone with customizable ring tones was the Japanese NTT DoCoMo Digital Mova N103 Hyper by NEC. It had a few preset songs in MIDI format
The Digital Minimo D319 by Denso was the first mobile phone where a user could input an original melody, rather than the preset songs.
MP3 WAS BORN 1995: Karlheinz Brandenburg, who first started his work on finding a way to transmit music over digital phone lines in 1982 by separating sounds into 3 layers agreed with Motion Picture Experts Group (MPEG) to the new format & music file extension - .mp3, after realizing that this new format could be of great use to the growing Internet. • MP3 (MPEG-1 Audio Layer III) became the standard means of
compressing a sound sequence into a very small file, to enable digital storage and transmission
• It was around this time that Brandenburg was asked a telling question by an English entrepreneur: “Do you know that this will destroy the music industry?”
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THE FIRST MOBILE RINGTONE SERVICE
1998: The first downloadable mobile ring tone service was created and delivered in Finland, when a Finnish mobile operator Radiolinja started their service called Harmonium. • The Harmonium contained both
tools for individuals to create monophonic ring tones and a mechanism to deliver them over-the-air (OTA) via SMS to a mobile handset.
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THE FIRST MP3 PLAYER • 1998: The MPMan was the
first flash MP3 player to be released, allowing high quality digital music recordings.
• D e v e l o p e d b y K o r e a n company SaeHan Information Systems, the player featured 32 MB of RAM and held an average of 32 minutes of music.
• It ran on a rechargeable NiMH battery pack and used solid-state memory.
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ONLINE PIRACY: ALL HAIL THE NAPSTER!!!
1999: The inevitable rise of peer-to-peer music sharing resulted in one of the most infamous companies of the Internet age • Although it was only around for 2 years,
the invention of Shawn Fanning, John Fanning, and Sean Parker shook up the music world.
• Napster was a simple, free peer-to-peer (P2P) file-sharing service; it wasn’t the first, but its focus on MP3 sharing catapulted it to almost 25 million verified users in February of 2001.
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• Despite the attack and subsequent quick death of Napster, many other P2P file-sharing services sprung up – Bearshare, LimeWire, Kazaa etc. It was not a good time for these services, and many of them were shut down with similar lawsuits.
• Of course, P2P music sharing still exists today, with BitTorrent being one of the most popular formats in use — especially because of its decentralized format, which can’t easily be shut down.
THE MP3 ERA IS TRULY BORN 2 0 0 0 : S a m s u n g launched the SPH-M100 that brought together for the first t i m e t h e m o b i l e p h o n e a n d M P 3 player and integrated storage.
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2001: Apple launched its portable media players and mul t i -purpose pocket computers called the iPod. Jobs announced it as a Mac-compatible product with a 5 GB hard drive that put “1,000 songs in your pocket”. Prior to this, Apple had launched iTunes (Macintosh version) about 8 1⁄2 months earlier.
DIGITAL MUSIC DOWNLOADS & STREAMING
2003: Apple released iTunes 4, which included the iTunes Music Store, Apple’s entry into the music sales business. • The ability to purchase a
song or an entire album with a single click was obviously very appealing to users, and has remained so
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2005: Though the title of “1st music streaming service” isn’t easy to bestow, Pandora easily takes the “biggest early music streaming service” label, pioneering the style of music recommendation service that would grow to become one of the biggest trends in modern music.
SMART MUSIC PHONES
2005: Believe it or not, the iPhone wasn't the first cell phone to have Apple's iTunes music player integrated. It was the Motorola ROKR E1, but it only could manage 100 songs at a time—not quite the same as an iPhone.
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2007: In 2007, Steve Jobs introduced the Apple iPhone, a revolutionary touchscreen smartphone. It wasn't the first smartphone, but it was the first to get the user interface right, eventually adapting 3G technology (which was already available since 2001). Apple cannot be credited with bringing the Internet to the mobile phone – what they pulled off with stunning brilliance was to make it a compelling consumer experience.
NIGERIA (2006 – 2010): THE RISE OF ENTERTAINMENT & MUSIC BLOGS 2006: www.notjustok.typepad.com
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2008: www.nigerianhiphop.net
2010: http://www.360nobs.com
NIGERIA (2011): MOBILE INTERNET GETS BETTER • 360NoBS.com tweaks the
audio wordpress plugin to maximize download & compression speeds
• Mobile visits rise to 41% compared to Desktop (59%)
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Spinlet becomes Africa’s 1st Music Streaming & Download mobile app for media distribution to emerging markets
TODAY: AFRICA’S FIRST TRUE SMART MUSIC PHONE
• The TECNO Boom J7 is an Amazing Amplified Music Phone for Audiophiles.
• It comes pre-installed with TECNO’s music streaming & download s e r v i c e – t h e boomplayer
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CONSUMERS’ MUSIC TASTE TIMELINE
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http://research.google.com/bigpicture/music/
MP3s are one of the most popular search items on major search engines
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NIGERIA INTERNET USE The Youth Factor
100,000,000+ Youth 60,000,000+ use Mobile Phones 78% of Internet users between age 19-35 Students are 45% of Internet population
Number of internet users in Nigeria from 2013 to 2018 (in millions)
Source: eMarketer; ID 183849
Note: Actual figures: 2013 to 2014
51.8 57.7
63.2 69.1
76.2
84.3
0
10
20
30
40
50
60
70
80
90
2013 2014 2015* 2016* 2017* 2018*
Num
ber o
f int
erne
t use
rs in
mill
ions
THE OPPORTUNITY – NIGERIA
34
Markets with the highest year-over-year smartphone subscriber growth rate worldwide in 2014
Source: Kleiner Perkins Caufield & Byers; ID 249462
Note: Worldwide; 2013
45%
41% 39% 39%
36% 36% 36% 34%
31% 30% 28% 27% 27% 27%
24%
0.0%
5.0%
10.0%
15.0%
20.0%
25.0%
30.0%
35.0%
40.0%
45.0%
50.0%
Sm
artp
hone
sub
scrip
tion
grow
th ra
te
THE OPPORTUNITY – NIGERIA (CONTD.)
35
THE NIGERIA MUSIC MARKET
N150 – N1,500 = 1 album sale N15 = 1 approximate cost of 1 song
N100 = 100 USB songs
MOBILE CONSUMERS WANT TO CONSUME MUSIC ON THEIR PHONES
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1.39
11.63 20.73
39.99
72.29
125.05
150.26
169.22
51.63 54.83 54.13 50.31 42.62
35.17 26.38
14.38
0.
20.
40.
60.
80.
100.
120.
140.
160.
180.
2007 2008 2009 2010 2011 2012 2013 2014
iPHONE
iPOD
Global Apple iPhone sales in the fiscal years 2007 to 2014 (in million units)
THE EQUILIBRIUM
• Is the market competitive? YES • Do Mobile consumers want music for
FREE? Not really. • Is the UNIT Price fair for Consumers?
YES
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THE FUTURE So if streaming loses the crown as the most widely used form of music listening, what will take its place? • We can assume that music technology could
advance so drastically within the next five or ten years that we wouldn’t even be listening to artists anymore.
• We might plug ourselves into virtual machines that would take our tastes and procedurally generate new music that would perfectly fit what we like in our music libraries, much like video games are using procedural generation
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CONCLUSION • The history of music consumption is a long one, and spans
almost 150 years. The history of music, and music performance, is a lot longer, with some philosophers believing that music is one of the the defining characteristics that makes humans different from lower-order animals.
• Music has played a role in how we celebrate, worship, communicate, design, and build for centuries, and it will likely remain one of the powerful tools in the human cognitive vocabulary. Music is a powerful thing, and the way in which we relate to it has changed as we have evolved and become more advanced as a species.
• We’ll continue to innovate, challenge, and completely change the ways in which we consume it.
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