Multimedia Messaging Service (MMS) is not going to match the hype that accompanies its launch. World Wireless Forum’s (W2F) research highlights a mismatch between the Industry push and user demand. Wild Industry predictions stating market values in excess of Euro/$ 50 billion per annum only serve to damage the potential success of MMS. This Report provides the reader with the information and statistics data necessary to navigate successfully in the MMS space.
The W2F predicts MMS is worth Euro/$ 5.8 billion by 2006 in the Key16* markets – a figure less than 20% of the current crop of Analyst predictions. These figures are based on interviews with key executives within its 3000 strong wireless Industry executive membership and intensive statistical research.
Beyond the hype, growth in areas such as photo and simple peer-to-peer messaging, will account for just under 700 million messages each per month by 2006 in the Key16* markets. The largest markets, in terms of messages sent per month in 2006, will be the USA (726.8 million), Germany (324 million) and UK (258.4 million).
Initial adoption will be slow until the majority of prepay handsets become MMS enabled. The early adopter category of 20-34 year olds will represent a large proportion of the initial users. However, by 2006, 15-19 year olds will constitute the bulk of MMS use in the larger markets (71.2% of traffic in UK 2006).
Unless there is a greater understanding of consumer lifestyle needs and how they adopt, experiment and eventually assimilate technology, MMS will under perform.
MMS must have workable business models, at present there is no evidence that this is the case. Business strategies must consider pricing, consumer segmentation & marketing, greater co-operation, interoperability between devices, usability and partnerships with 3rd party content providers with clear revenue sharing models.
The W2F’s report is the first to puncture the MMS analysts’ bubble. The upgraded functionality of colour, audio and graphics is not going to see a complete migration of users from SMS to MMS.
Users perceive SMS to be cheaper and easier to use than voice. The key market for messaging, accounting for 88% of all usage is the Youth market. The initial cost of MMS and compliant devices prices it out of the youth age group and slows initial take up.
MMS has fundamentally different drivers than SMS. It creates more of an entertainment medium rather than the purer communication role of SMS. MMS will only take a small market share of the SMS market and will not be a direct substitute:
This report provides readers with:
• Key headline figures and in-depth market statistics:
Covering the Key16* developed wireless countries focusing on their growth and revenue potential for MMS 2002 – 2006:
What
is the potential size of the MMS market place in the key markets?
How should the market be segmented demographically?
How do MMS usages patterns vary by age and market?
What is the consumer spend in each market?
How will MMS affect MNO revenue?
What applications will subscribers use?
• A top level overview of current business models and current applications available:
Providing an in-depth analysis of industry developments as well as a focus on the evolutionary path for implementations and business models. Drawing from the current applications and working mobile internet models we assess the feasibility of their success.
• An overview of the challenges:
The strategies need to be considered and adapted to successfully implement MMS. The issues have been created by the over selling of the features and technology, only by focusing on the consumer will companies be able to take place of this content rich media.
• Strategic guidance:
The report makes recommendations for the companies who can profit from this new platform. The W2F’s survival guide to MMS makes sure that you gain the edge on the companies who are following the hype rather than making their own rules.
* Key 16 markets represented in this report
Australia, Canada, Finland, France, Germany, Hong Kong, Ireland, Israel, Italy, Netherlands, Norway, Portugal, Spain, Sweden, United Kingdom, United States