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Mobile Downloads - UK - August 2005

INTRODUCTION AND ABBREVIATIONS
Relevant reports
Definitions
Consumer research
Lifestage and Special Groups
ACORN
Advertising data
 ABBREVIATIONS
PREMIER INSIGHT
Fun for all the family
High street life for downloads
Loyalty is key
Opportunities abound for old favourites
EXECUTIVE SUMMARY
Mobile phone users look for upgrades
Life without a mobile would be tough for young people…
…but focusing on the young may be bad for business
A responsible market
Downloads rocket past the £300 million mark
Ringtones dominate, for now
Two types of supplier dominate the market
Adspend is growing fast
More distribution channels on the way
Target customers
The challenge ahead
The future is bright for downloads
MARKET DRIVERS
Giving them what they want…
…and what they don’t know they want (yet)
The mobile phone phenomenon
Figure 1: UK retail sales of mobile phone handsets, by volume and value, 2000-05
A nation of techno junkies
Figure 2: Ownership of technology and media products, 2002-05
Phone addicts
Figure 3: Those agreeing mobile phone is indispensable, by age and Mintel’s Special Groups, January 2005
Text messages show the way forward
Figure 4: Features on mobile phone, 2001-04
Not just the kids are alright
Figure 5: Trends and projections in UK population, by age group, 2000-09
The benefits of growing older younger
Materialism and status
Figure 6: PDI and consumer expenditure, at constant prices, 1999-2008
Changes to charges
Copyrights and wrongs
Microsoft enters the fray
Music for the masses
Hip-hop tops the charts
Figure 7: Top ten selling ringtones, 2004
It’s worth backing ringback
24-hour news fuels demand for data
So, no one is targeting kids?
 NEW PRODUCT DEVELOPMENTS
Mobile email implications
Phone shows
A change of direction
MARKET SIZE AND TRENDS
Something for nothing – not included
Downloads market grows exponentially
Figure 8: UK retail sales of mobile downloads, by volume and value, 2002-05
The easy access factor
Greater demand and falling costs
Figure 9: Average cost of UK mobile downloads, 2002-05
Where the money is
MARKET SEGMENTATION
Ringtones boss the market
Figure 10: Volume and value of mobile downloads, by type, 2004 and 2005
Ringtones
Ringback-lash
Games
Music
Wallpapers/icons/screensavers
Gambling
Other downloads
All news
THE SUPPLY STRUCTURE
 MARKET OVERVIEW
Vodafone edging ahead
Figure 11: Estimated number of mobile phone subscriptions*, by volume, 2003 and 2004
Massive growth for emerging third-party key players
Figure 12: Third-party download market, by number of subscribers, 2003 and 2004*
 COMPANY PROFILES
Vodafone
Orange
O2
T-Mobile
Virgin Mobile
3
Jamster
MonsterMob
iTouch
Zed
ADVERTISING AND PROMOTION
How to buy a Number One single
Figure 13: Selected main monitored media advertising expenditure on the mobile phones downloads, by company, 2004 and 2005*
A shrinking ad pool?
Almost all ad campaigns are run through television and the press
Figure 14: Total adspend, by media channel, 2004
DISTRIBUTION
Ad-driven approach
Figure 15: Origin of downloads and mobile download usage habits, May 2005
Cyber shopping
Network providers have fore-sites
Big boys muscle into the high street
Other innovations
THE CONSUMER
 DOWNLOADING – USAGE
One in five mobile users have a ringtone
Figure 16: Mobile phone downloads, May 2005
A youth-driven market
Figure 17: Mobile phone downloads, by gender, age, socio-economic group and working status, May 2005
Engaging the disinterested
News may prove the best bet
Family wallpaper?
Popular across socio-economic spectrum
 TYPES OF DOWNLOADS
Married life and responsibilities impact on downloads
Figure 18: Mobile phone downloads, by marital status, lifestage, presence of children and Mintel’s Special Groups, May 2005
Southerners…and those in the North West download
Figure 19: Mobile phone downloads, by region and ACORN category, May 2005
Those in Hard Pressed areas are game
Game on for tabloid readers and Internet users
Figure 20: Mobile phone downloads, by media usage, commercial TV viewing and supermarkets used, May 2005
Square deal for square eyes
Super opportunities abound for supermarkets?
 ORIGIN OF MOBILE PHONE DOWNLOADS
Figure 21: Origin of downloads and mobile download usage habits, May 2005
Safe and sound
 ATTITUDES TOWARDS MOBILE DOWNLOADS
What price a download?
Figure 22: Attitudes towards mobile phone downloads, May 2005
Opposition – hidden charges
Time to act!
Thrifty or nifty?
Child line?
Time for scams to scram
Married life leaves little room for downloading
44% of ABC1 families think downloading is a waste of money
A region to focus on?
The impact of newspapers
Educational programming
Somerfield customers are less sure about how to download
Is ignorance holding the industry back?
Musically inclined
THE CONSUMER – DETAILED DEMOGRAPHICS
Figure 23: Attitudes towards mobile phone downloads – cost, by gender, age, socio-economic group and working status, May 2005
Figure 24: Attitudes towards mobile phone downloads – cost, by marital status, lifestage, presence of children and Mintel’s Special Groups, May 2005
Figure 25: Attitudes towards mobile phone downloads – cost, by region and ACORN category, May 2005
Figure 26: Attitudes towards mobile phone downloads – cost, by media usage, commercial TV viewing and supermarkets used, May 2005
Figure 27: Attitudes towards mobile phone downloads, by gender, age, socio-economic group and working status, May 2005
Figure 28: Attitudes towards mobile phone downloads, by marital status, lifestage, presence of children and Mintel’s Special Groups, May 2005
Figure 29: Attitudes towards mobile phone downloads, by region and ACORN category, May 2005
Figure 30: Attitudes towards mobile phone downloads, by media usage, commercial TV viewing and supermarkets used, May 2005
THE CONSUMER – ASSESSING ENTHUSIASM AND RESISTANCE
 ESTABLISHING ENTHUSIASM – REPERTOIRE ANALYSIS
Three quarters of all respondents don’t download
Figure 31: Repertoire – types of downloads, May 2005
Multi-downloaders lead the way?
Figure 32: Repertoire – types of downloads, by specific type, May 2005
Figure 33: Repertoire – types of downloads, by specific type, May 2005
The post-ringtone generation
Does gambling buck the trend?
The importance of multiple users
Reaching the audience
Figure 34: Repertoire – types of downloads, by Internet, printed and TV media usage, May 2005
 ASSESSING KEY TARGET MARKETS – CHAID
Figure 35: CHAID analysis for ringtones and other downloads, May 2005
Chicken or egg?
 BARRIERS TO PURCHASE
39% of mobile phone users have no barriers to purchasing downloads
Figure 36: Barriers to purchase, May 2005
Even the keenest downloaders worry about hidden costs
Figure 37: Number of barriers to purchase, by specific attitudinal statements, May 2005
Figure 38: Barriers to purchase, by specific attitudinal statements, May 2005
One or two barriers to overcome are possible…
…but forget about the rest!
THE FUTURE
More room for growth…
…but is the number up for ringtones?
Watch out for video streaming
Carry on gaming
Gambling on hitting the jackpot
Adult entertainment set to grow
Safe and secure
Multimedia channels to enter the market?
Youth-driven market prevails
FORECAST
Figure 39: Forecast of UK retail sales for mobile downloads, by value and volume, 2005-10
Introductory growth patterns, signified by NPD
Improved quality, reliability and sophistication to broaden consumer base
Downloads to increase attachment and dependency on mobiles
Evaluation
Factors incorporated in the forecast

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