Ovi

Ovi Store sparks into life with 70% growth

Paul Rasmussen — Fri, 20 Nov 2009 10:22:41 -0500

Having been roundly slated since it was launched earlier this year, Nokia's Ovi Store would appear to be making headway following details that last month's downloads had increased by 70 per cent compared with September's.

According to Bill Perry, services marketing manager for Forum Nokia, there are more than 100 devices in 20 countries--with the N97 and the 5800 being the top devices--capable of accessing Ovi, with the average user downloading eight items.

Perry states that during the period from May until October of this year, the Ovi Store has hit these milestones:

Active users from more than 180 countries.
Developers from 65 countries are distributing content.
Eight countries today have local content, local language support and mobile billing: UK, Spain, France, Germany, Singapore, Australia, Italy and Russia. By the end of Q1 2010 there will be more than 20 countries.
Top 10 Ovi Store Markets by performance in alphabetic order: Egypt, Germany, India, Indonesia, Italy, Spain, Saudi Arabia, Thailand, Russia and UK.
In almost all of the top 10 Ovi Store countries, 5800 XpressMusic and N97 are the #1 and #2 devices for Ovi Store activity and consumer engagement.

According to Perry, the much criticised ‘redownload' facility is now working, and Ovi Store will be embedded on most new compatible Nokia devices including Symbian S60 and Series 40 from Q4 2009.

For more on this story:
Into Mobile

Ovi Store sparks into life with 70% growth

Paul Rasmussen — Fri, 20 Nov 2009 10:22:41 -0500

According to Bill Perry, services marketing manager for Forum Nokia, there are over 100 devices in 20 countries - with the N97 and the 5800 being the top devices - capable of accessing Ovi, with the average user downloading eight items.

Perry states that during the period from May until October of this year, the Ovi Store has reached these milestones:

Active users from over 180 countries.
Developers from 65 countries are distributing content.
Eight countries today have local content, local language support and mobile billing: UK, Spain, France, Germany, Singapore, Australia, Italy and Russia. By the end of Q1 2010 there will be more than 20 countries.
Top 10 Ovi Store Markets by performance in alphabetic order: Egypt, Germany, India, Indonesia, Italy, Spain, Saudi Arabia, Thailand, Russia and UK.
In almost all of the top 10 Ovi Store countries, 5800 XpressMusic and N97 are the #1 and #2 devices for Ovi Store activity and consumer engagement.

According to Perry, the much criticised ‘redownload' facility is now working, and Ovi Store will be embedded on most new compatible Nokia devices including Symbian S60 and Series 40 from Q4 2009.

For more on this story:
Into Mobile

Smartphone revolution tests established players – page 2

Keith Mallinson — Tue, 27 Oct 2009 17:15:32 -0400

Major operators such as Vodafone are no less challenged by the rise of Apple and others. Vodafone's moves--I'm loathe to describe most of these as strategic--aim to hedge its position against competition for customer control and margin right across the value chain. Whereas the old enterprise-focused BlackBerry provided significant added-value for operators and did not pose a competitive challenge, in its expanded guise to consumers the BlackBerry ecosystem competes for the customer relationship and bottom line profits. Vodafone and Orange picking up iPhone distribution in the UK counters O2 on expiration of its iPhone exclusivity. Whereas this eliminates a competitive advantage for O2, it also puts Apple in an even stronger competitive position versus the operator market. Apple anticipates a fall in street prices with carrier competition in iPhones, but it does not expect its wholesale prices to fall. So far, Google's Android is predominantly with the T-Mobile with the HTC G1, but this OS is also set to diversify. For example, Vodafone's Verizon Wireless joint venture with Verizon is imminently expected to announce a Motorola "Droid" phone.

Vodafone and other carriers have numerous possibilities in smartphones. Focus is required. Vodafone has had a mixed relationship with Nokia for a decade or more. Club Nokia's mobile portal threatened to circumvent Vodafone and was crushed in order to preserve the regular handset trade. Club Nokia's reincarnation with Ovi was backed by Vodafone since 2007.

Vodafone's 360 initiative is an attempt to get back into the driving seat where its Live! portal has failed. It is promising sophisticated personal contacts management, social networking and an applications store. Its payment mechanism enables content and applications charges to appear on the phone bill. Vodafone plans to rollout 360 to Germany, Greece, Italy, Ireland, Portugal and Spain by yearend and into a further nine nations during 2010.

Vodafone has signed-up phone suppliers Samsung and Nokia with LiMo and Symbian OS respectively for 360. The attraction of LiMo's Linux is the pledge that this will never be used to circumvent the mobile operator with the independent service portals and applications stores that are strategically being pursued by Apple, RIM, Google and Nokia with Ovi.

A key potential competitive strength for 360 versus Apple, BlackBerry and Google is that Vodafone can allow developers deeper access into network capabilities with applications running on a variety of OSs. Similarly, Orange has opened up applications programming interfaces under its Orange partner Program.

Easier said than done. Most carriers groups are loosely structured federations: ownership and control is not absolute. It is difficult for Vodafone's corporate centre to impose a one-size-fits-all approach across many operating companies because local history and conditions differ significantly from nation to nation.

Carriers are disadvantaged by their limited scale. Even though Vodafone is a large group with 315 million proportionate subscribers worldwide, this is still less than a tenth the worldwide market of 4 billion subscribers addressed by Nokia and increasingly other smartphone and OS vendors. Scale attracts developers, helps amortize development and operational costs and build cool brands.

The Joint Innovation Lab initiative promotes creation of mobile applications and services with a global platform for developers. Widget compliant handsets from supporters LG, RIM, Samsung and Sharp will enable developers to create applications that can be rolled out to customers across JIL member companies China Mobile, Softbank, Verizon Wireless and Vodafone with a combined user base of more than 1 billion worldwide.

Many such alliances in IT and telecoms have failed over the years in their attempts to drive cohesion and scale. Alternatively, Ericsson is helping carriers by offering mobile internet, applications and messaging services including hosting to all comers on a white label basis. Carriers worldwide brand these as their own.

Vodafone's old anxieties about Nokia should be the least of its worries with so many new strategic challenges.

Keith Mallinson is a leading industry expert, analyst and consultant. Solving business problems in wireless and mobile communications, he founded consulting firm WiseHarbor in 2007.

Nokia tempts dealers with commission on Ovi Store sales - as Fitch cuts credit rating

Paul Rasmussen — Fri, 24 Jul 2009 11:48:50 -0400

In a desperate attempt to boost the uptake of its Ovi service Nokia is offering cell phone dealers a commission for every Ovi Store application or service sold. This initiative, believed to be the first time mobile apps have been sold in this way, is being trialled in the UK with 15 dealers who will receive provisional commission of €2.5 per service.

The dealers involved with the trial have agreed to provide feedback to Nokia throughout the test period and, for its part, Nokia said it would look to deduct the cost of services from a subscriber's bill, pending network support. The company is also reported to be in discussions with mobile operators to introduce a 50/50 revenue share model, as the desire from operators to subsidise phones dwindles.

Evidence that Nokia's Ovi platform continues to lack appeal comes from the games developer EA which has established a new development studio called 8lb Gorilla that will create games solely for Apple's iPhone and iPod Touch.

Adding to Nokia's woes, the financial ratings agency, Fitch, has cut the company's credit rating from A+ to A. Fitch said that the factors affecting Nokia's business risk included a materially weakened cash flow performance in the first half, a deeper-than-previously expected industry downturn, a modest weakening in Nokia's handset market share in the first half and reduced expectations for 2009 market share. "We also expect a weaker-than-expected operating performance at Nokia Siemens Networks with revised guidance now pointing to market share loss for 2009 at the infrastructure joint venture."

For more on this story:
Mobile Today and Market Watch

Ovi Store attracts criticism, not subscribers

Paul Rasmussen — Fri, 29 May 2009 13:14:59 -0400

Having seemingly recovered from a launch whereby early users experienced server crashes, Nokia's flagship Ovi Store service is now attracting attention, but for all the wrong reasons. According to experienced reviewers, after a disastrous launch Ovi Store is "rushed, early and not fit for public consumption."

According to reports, Ovi Store is lacking in apps because developers are experiencing listing problems leading to many of the most popular S60 applications, including Slick IM, LCG Media Player, StyleTap and even Nokia's Sports Tracker, not being found in Ovi Store. However, on the upside it does offer Skype clients that work over 3G connections, and a multitude of email and SMS applications.

Naturally, the comparison is made with Apple's iTunes store and two significant problems become apparent--Nokia has to support a range of handsets, and there is no integrated desktop software. Also, the Ovi Store web experience has been judged harshly against what Apple has achieved, with calls that a radical overhaul is needed.

Further criticism focused on Nokia's overly ambitious plan to roll out a store to so many territories and, in particular, to so many device categories, in one big bang. The number of devices supported goes back six years--encompassing eight versions of Series 40 and three versions of S60.

For more on this story:
- see this Register article
- or this Register article

Nokia admits to Ovi Store integration issues

Paul Rasmussen — Fri, 01 May 2009 09:41:36 -0400

The forthcoming launch of Nokia's Ovi Store has been hampered, according to a senior exec, by the complexities surrounding the technical integration of the app store with a wide portfolio of handsets and operator billing systems.

According to Niklas Savander, Nokia's exec VP of services, the launch of Ovi Store could have happened much sooner had it not been for these integration difficulties--a problem not faced by Apple given its present handset strategy. However, Savander claimed Ovi Store would operate on the basis of a single sign-in and one user identity, "just like you get on a credit card-based store like iPhone."

"The user interface is clearly not an issue when you only have one product," Savander said. "But we're trying to get to a broader audience than iPhone. The main aim is consistency--there has to be logic even across different devices or when there is co-branding with operators. In everyday terms that means, for example, making sure the log-in to Maps is the same as Ovi--same shopping cart, same billing gateway, navigation, etc."

Commenting on a report from Reuters that Nokia was dropping operator billing in the US, the company said this was untrue and that Ovi store billing and rollout strategy remained on track. "We still plan for both operator and credit card billing, although these options may roll out in different phases."

For more on this story:
Mobile Entertainment and MoCo News

Nokia repositions web services unit for lean times

Paul Rasmussen — Wed, 29 Apr 2009 13:14:46 -0400

Having admitted that its recent string of acquisitions might have been too ambitious, Nokia has announced a series of measures to reshape its Internet services division for harsher economic times. This will involve the greater use of third party software and cutting 450 workers in an attempt to reduce costs, and moving more products and services under the Ovi Store branding.

The company said it would unify the N-Gage and Musicstore brands under Ovi--essentially copying Apple's example for developed markets--though Ovi Services will remain the brand for emerging markets, where Nokia's biggest potential upside lies after 2010. In mature markets, the company confirmed it would focus on fewer, more proven profit generators and reduce the number of investments it makes in software houses like mapping specialist Navteq. Its initial core services will be music, location/mapping, games and business offerings.

While Nokia's services VP, Niklas Savander, claimed these changes were aimed at improving and simplifying the user experience of Nokia services, industry watchers point to the need for the company to communicate its proposition more simply and clearly to consumers. This inability has, reportedly, damaged the prospects of Nokia's Comes with Music service with users not always recognising the value of the deal.

In an effort to show it can launch successful services, the company announced over 250,000 users had already opened Ovi email accounts during the four months since the service was operational. Nokia said 10 of the top 12 Ovi-using countries were emerging markets. The company has partnered with several mobile operators to develop Ovi services, including Telefónica, TIM, T-Mobile International and Vodafone.

For more on this story:
Mobile Entertainment and ReThink Wireless

Nokia's Comes with Music--an operator turnoff

Paul Rasmussen — Fri, 03 Oct 2008 13:19:48 -0400

Nokia's glitzy launch in London of its Comes with Music service will have pleased music lovers and the gadget press alike, but UK mobile operators have expressed their displeasure by vowing not to sell the service over their networks.

While these operators will closely monitor this free music download service, their refusal to cooperate with Nokia stems from two, significant issues. Firstly, Nokia is insisting upon a profit-sharing deal albeit that operators can see little margin in selling the handset. Secondly, the operators will be saddled with much increased network traffic caused by the unlimited downloads associated with the service. The fear is that this could run into several Gigabytes per month per handset, which could cripple operators' existing data networks.

Insisting that the situation was not all gloom, Nokia claims to be negotiating with several operators in the hope it can sign several deals in time for Christmas. However, given the majority of the larger European operators already have, or are planning, a music download service, Nokia's Comes with Music can only be seen as a threat. The market research firm CCS Insight said it expected some operators to participate in the new service, but only if it proves popular and draws in new subscribers.

This resistance by UK operators could well be echoed by their counterparts in Europe and the US. Nokia's Ovi service, an umbrella concept for mobile Internet, has also experienced pushback from the operator community not wanting the handset giant to cream off revenues they strongly maintain belong to them.

However, a recent study by market researcher TNS Technology revealed that people aged 16 to 64 wanted to download 64 music tracks a month--which, on a yearly basis, equates to over £600, making the Comes with Music service at £130 look more of an attractive proposition.

For more on this story:
- go to IT Proportal

Related articles:
Study: Consumers favor all-you-can-eat mobile music offers. Study
500 million mobile users in India by 2010, predicts Nokia.n Nokia story

Nokia looks to services for future revenues

Paul Rasmussen — Fri, 18 Jul 2008 12:42:48 -0400

Having presented a satisfactory set of quarterly results, of perhaps more interest was the growth in the company's services revenues. Buried deep within the results, Nokia confirmed that revenues from the services and software division reached €119 million in 2Q08, up from €84 million in the previous quarter. While these numbers are miniscule when measured against Nokia's handset business--sales rose four per cent to €13.2 billion in the quarter, it is clear that the company's services strategy is beginning to pay off. Products falling under Nokia's Ovi software and services umbrella brand include the Nokia Music Store, Nokia Maps, N-Gage and the Comes With Music initiative. The latter, which is supported by Sony BMG, Universal Music and Warner Music, will offer owners of selected Nseries handsets free and unlimited music downloads for a year.

However, the much hyped Comes With Music service has no launch date other than late 2008. Nokia Maps, meanwhile, was downloaded 406,000 times during the quarter. Geoff Blaber, an analyst with CCS Insight, said Nokia's presence in emerging markets meant it was well insulated from any European economic downturn. "But the margins on hardware are declining. It will be hard to gain more handset market share, so the move into services will be key."

For more on this story:
- go to Mobile Entertainment

Related stories:
T-Mobile, Nokia renew deal for mobile web services. T-Mobile Ovi story
Orange and Nokia to form strategic international partnership on mobile services. Orange Ovi story