An "Apptastic" London Event

MIG CEO Barry Houlihan welcomed everyone to a private screening room in the Charlotte Street hotel for “Apptastic” the first joint MEF/MIG London event held on 17 November. “It IS possible to have a great user experience on the small screen,” enthused Houlihan, before going on to underline the importance of having a mobile app strategy based on “Discovery and which platforms to use; features and which devices to target; and delivering a great user experience.”

Suhail Bhat, MEF Policy & Initiative Director, set the scene by speaking briefly about applications from the perspective of MEF’s current work on Smart Enablers and M-Commerce. “Apps must be simple, relevant and contextual,” stated Suhail, adding that there are also important issues surrounding in-app billing, a subject which was the focus of a recent Ofcom ruling.

“Monetisation & In App Billing”

“Monetisation is key, otherwise as a start-up you face death!” was the dramatic opening statement from Flirtomatic’s CEO Mark Curtis. With at least 5 platforms to deal with, Curtis emphasised the need to work with partners to deal with the complexity. He also advised the audience to “Watch out for HTML5” with regard to mobile web applications.

So-called ‘vanity tools’ such as ‘Delete your freak’ and ‘ego boost’ offer opportunities for Flirtomatic users to pay to boost their ratings and profiles. This is crucial given the social networking company’s focus on the KPI of conversion to payment.

His presentation also covered different billing routes including: iTunes, carrier integration, Paypal, as well as a “new breed of integrator” typified by companies like Boku and Zong, which both have Android “1 click billing”.

One audience member asked about the reasons for the high levels of failed payment transactions – which can lead to anything from 25-50% of failed transactions. “Often this is down to lack of credit on pre-pay phones but it can also be due to network drop-outs or numerous other reasons,” explained Curtis.

Another attendee asked how Flirtomatic compare themselves to their competitors such as Match. “We don’t view Match as competition,” replied Curtis, “since we have different business models – theirs is based on subscriptions. Besides we’re about flirting not dating,” he added, pointing out how many times people (and here he included himself) flirt during the course of their day.

“Using Apps to Drive Revenue & Extend Your Brand”

Neil Johnson from A&N Media (a division of Daily Mail & General Trust) began his presentation with a quick overview of Metro’s readership, dubbed “City Clickers”. “The average age of our readers is 35 years, they’re twice as likely to have an iPhone and over 50% own a smartphone,” said Johnson.

Metro Apps is the brand and website for the publishing group’s applications which focus on transport and games, although Phrasebook apps, aimed at the “fly and flop” traveller, have also proved popular. “An example of a travel app is ‘Cabfinder’ which uses LBS to show minicab firms in your area. The app is free and there’s a revenue share earned from each call,” explained Johnson.

Responding to an audience question, Johnson conceded that the business model for Metro Apps relies on their ability to cross promote using the publishing assets at A&N Media’s disposal.
He added that Metro is also experimenting with QR Codes which can be scanned by smartphones and provide a link to say a Youtube clip. This is being used for a game entitled Super Yum Yum 3 with the entertaining tagline: “Revenge doesn’t get fruitier than this!”

MIG’s David Glennie concluded with a presentation on market fragmentation, pointing out, “Fragmentation is always viewed in a negative way, even though it’s caused by innovation (which generally has positive connotations).” Glennie suggested that HTML5 could solve many fragmentation issues and is set to revolutionise the mobile web. It would also appear that the future is coming faster than we think. As an example of the speed of change affecting mobile, Glennie pointed to a prediction made earlier this year by Morgan Stanley’s Mary Meeker that smartphone sales would overtake sales of new pcs by 2014. This prediction has now been revised to actually happen by 2012…

Attendees then gathered in an adjacent room to network and enjoy some typical MIG hospitality. Further joint events on topical issues are planned for 2011.

MEF Welcomes New Proposals from UK Regulator & Champions Regulatory Insight for Membership

MEF has announced industry briefings and the launch of a global regulatory database as PhonepayPlus (PpP), the independent UK regulator for premium rate services, issues its most important Code consultation yet.

One of the most significant proposals in the consultation is the distribution of regulatory responsibility along the value chain, including content businesses that market directly to consumers. To date, PpP has only been able to pursue the aggregator which typically does not promote or control the content sold to the consumer, rather than targeting companies directly responsible for causing consumer harm.

In order to ensure this new approach works in practice, there is a proposed mandatory registration scheme for all parties in the premium rate value chain. This registration scheme has clear advantages: PhonepayPlus will link its adjudications to businesses and their directors, so that companies can carry out due diligence on their partners and, as a result, rogue providers should find it very hard to operate in the UK premium rate industry.

Suhail Bhat, MEF’s Policy & Initiatives Director, commented: “We welcome the fresh approach taken by PhonepayPlus with a focus on future proofing and a recognition that the mobile industry is constantly evolving. However there remain unanswered questions such as the definition of a premium rate service. In a world where content and services can be accessed and purchased on multiple devices, convergence is an increasingly disruptive force on legal definitions. We will be seeking clarity on the criteria determining which services will fall under the remit of PpP and its Code.”

The consultation closes on 8 July and MEF is hosting two events to gain maximum industry input and feedback for the regulators. See below for further details and how to register.

Rimma Perelmuter, MEF Executive Director, added: “Codes of practice for the mobile media industry vary hugely from country to country. To assist our members navigate the complexities of global regulation and the numerous Codes that impact their business strategies and bottom line, MEF has launched a Regulatory Information Service Centre (RISC). RISC includes the latest on the UK situation and currently covers 24 other countries. This online archive will provide a one-stop solution for information on the regulations applicable at a local, regional and international level, including access to MEF guidance documents; links to third-party sources for further reading; as well as relevant regulatory contact details.”

For more details on RISC, please go to: http://www.m-e-f.org/policy_regulation/risc/

6th May 2010: Webinar on the proposed registration scheme
Simon Bates, Director of Standards and Communications at PpP, will explain the objectives, principles, governance and cost of the Registration Scheme
http://www.m-e-f.org/policy_regulation/phonepayplus/webinar_ppp_registration_scheme/#c2574

19th May 2010: Live workshop on the PpP Code consultation hosted by Denton Wilde Sapte
http://www.m-e-f.org/policy_regulation/phonepayplus/live_workshop_ppp_new_code_consultation/
On hand to explain the proposals will be Bradley Brady, Director of Strategy & Stakeholder Relations at PpP, with Mark Collins, PhonepayPlus Policy Advisor.

MEF responds to EU Consumer Commission crack down on miss-selling of mobile services

Suhail Bhat, Policy & Initiatives Director, MEF, comments on the news that the EU Consumer Commission has cracked down on websites miss-selling ringtones and other mobile services:

“Since the original notification of the investigation last year, MEF has been working closely with its members to resolve the concerns expressed by the EU’s Consumer Commission as we recognise the importance of transparency and the need to maintain and increase consumer trust in mobile services.

In May 2009, we established an EMEA regulatory committee comprising of 30 companies spanning the entire mobile value chain to examine some of these issues, and have since done the same in South East Asia. Today, PhonepayPlus, the phone-paid services regulator, announced a 62% decrease in complaints about mobile phone-paid services (between July 2008 and October 2009), clearly showing that when regulators and the mobile industry work together, services can operate in a compliant manner to the benefit of all. This is mirrored by the Consumers and Convergence study recently undertaken by KPMG in association with MEF, which showed that consumer satisfaction with mobile music services had grown globally from 26% in 2007 to 66% in 2009.

We would welcome discussion with the EU on the regulation of mobile services. The mobile entertainment industry is valued at $32 billion globally, but the regulations for the same content vary tremendously and are applied inconsistently in different Member States. In many cases, there are multiple regulators with remits over both the advertising and content of services. As convergence becomes a reality, more discussion is needed to ensure consumers continue to enjoy mobile content services.”

For more information on MEF's policy and regulation work, please visit the MEF website: http://www.m-e-f.org/policy_regulation/

MEF Announces September In-Market Regulatory Tour of Asia

The Mobile Entertainment Forum will tour four key Southeast Asian countries to foster collaboration between regulators and members and create an environment conducive for the mobile media industry’s continual growth and vibrancy. The two week tour, from 7th- 18th of September, will cover Singapore, Malaysia, Indonesia and India.

The mobile media industry is subject to a considerable number of regulations globally. It sees a variety of content (games, music, video, ringtones) all accessed on the mobile device. Regulators and the industry alike have been trying to ensure that any regulatory regime meets the needs of consumers, affords an appropriate level of consumer protection and also supports an innovative and rapidly changing industry.

“MEF is building on its regulatory successes in the Americas and EMEA by assisting both the regulators and the industry to ensure that regulations are fit for purpose, transparent and proportionate. The industry is showing a genuine commitment to work with MEF and with the regulators to secure a more successful future to benefit everyone, including the consumers, in the value chain. MEF recognises how fragmented the Asian market is and hopes that its efforts to conduct this tour on a country-by-country basis will deliver more positive outcomes for the industry.”

- Neeraj Roy, MEF Asia Chair and Managing Director & CEO of Hungama Mobile

“I am very excited to be leading this crucial work for MEF. India and Indonesia are two of the fastest growing markets in the world, with 0.5 billion subscriptions between them, growing at 10m per month, whilst Singapore and Malaysia are defining the commercial and creative shape of 3G / mobile broadband consumption. Underpinning this growth and the future success of the mobile entertainment industry as a whole is the essential consumer trust in mobile media services. MEF is at the forefront of liaising with the industry and regulators alike in many different territories globally and want to spearhead similar successes in Asia.”

- Suhail Bhat, MEF Policy and Initiatives Director

In April 2009, MEF Americas announced the completion of the first phase of its Mobile Sweepstakes Rules Initiative with the launch of “The Sweepstakes Rules Map: US”. This interactive map of the United States is the first ever to outline the applicable rules and laws governing mobile promotions and sweepstakes on a state-by-state basis. The map was compiled by MEF Americas in partnership with MasurLaw, a leading venture law firm specialising in technology and entertainment.

In July 2009, MEF held three separate workshops on proposed regulatory changes in the UK. Written by MEF member and law firm Denton Wilde Sapte, MEF produces Guides to key pieces of legislation such as the Unfair Commercial Practices Directive and the Audiovisual Media Services Directive. In addition MEF EMEA has established a Regulatory Committee comprising of over 30 member companies with meetings held every 6 weeks to discuss regulatory issues of relevance to our members.

If you like us to incorporate your relevant concerns during this tour or simply want further details about the MEF Asia tour, please contact Crystal Chua at crystal@m-e-f.org.