Claudia Sagripanti is Convenor of the Mobile Content Industry Development Group (MCIDG) - Australian Interactive Media Industry Association (AIMIA), and Director of VentureOne Pty Limited, a mobile content consulting company.

mo:life:
Can you give a brief overview of the mobile content industry in Australia? How many players are currently involved? Who’s successful?

Claudia Sagripanti:
I see mobile content covering many different areas including the more traditional forms of content such as ringtones, wallpapers and logos, as well as news, sport, weather and other subscription services. In terms of the number of players, it depends on whether you are talking about content originators (which also include the media companies), and content aggregators. I’d estimate that there are no more than 100 companies.

The most successful companies particularly in the area of providing consumer content services, are those that understand retail – mobile is just another medium. It’s all about identifying your target market and marketing to them. Big content providers are investing significantly in marketing via traditional mediums such as TV and print. Ultimately it’s about establishing a brand.

mo:life:
The games industry is export driven. Will the mobile industry also be export driven, or will there be a viable market here in Australia?

Claudia Sagripanti:
Yes, for some content and application developers the only way of surviving is to export. Some of the AIMIA MCIDG members are already exporting to Asia, Middle East and Europe. For others, they will carve out a reasonable Australian market.

mo:life:
There’s always talk about the importance of having content or stories that reflect Australian culture - Australian stories for Australian audiences. What are your thoughts on this? Will there be content quotas for mobile devices?

Claudia Sagripanti:
Mobile content is not necessarily the same as Australian film and television – recipients are directly paying for mobile content. There are content originators who are looking specifically at what suits an Australian audience, which may differ from what’s been successful overseas. However I see this will work out as part of market dynamics. If say an Australian based mobile soap works and is marketed properly then recipients will pay for it. If it doesn’t meet the interest of its target audience, then it’s unlikely to succeed.

mo:life
The cost of mobile bandwidth is prohibitive. Do you see this changing in the immediate future? What are some triggers that could force prices down?

Claudia Sagripanti:
Yes the cost of mobile bandwidth is very high, in the area of data downloads and depending on the content service, consumers can be very price sensitive. Costs will come down, just the same as internet bandwidth costs came down due to competition. It’s early days in the market for mobile content.

It’s been interesting to see that after shocks delivered by the new entrants into the mobile ringtone market offering cheaper subscription deals. There has been a huge downward impact on pricing of ringtones. There will be further impacts in other content niches such as games etc. Only by making content services cost competitive both on the subscription costs and data downloads, will content services grow.

mo:life:
Can you say how people use their mobile phones now and in the immediate future? Will they really be watching TV on that tiny little screen?

Claudia Sagripanti:
The AIMIA Mobile Content Industry Development Group is putting together a consumer web survey, co-ordinated by Oliver Weidlich of Ideal Interfaces. We’ll know more once that study is completed of what consumers want to receive.

We will be watching TV in a different way, built to suit the mobile environment. We’re already watching highlights of TV programs like the short mobile soaps, highlights of news, sports, weather, surf reports, etc . Optus Zoo TV has been operating for a while now.

mo:life:
Is there room for smaller players or even individuals to enter the mobile content industry. Do you have any tips or warnings for people who may be interested in working for this new media?

Claudia Sagripanti:
There is quite a low initial barrier to entry, so there are lots of opportunities. However, as in any business it’s important for a company to do its homework. There will be lots of new content services to be launched when the other carriers launch their own 3G services later in the year. The area of B2B services is a good one to explore as there are not many services or applications in that area. One of the highlights in the B2B market is the LOC 3 application offering a niche application to real estate agents. Other services being investigated are the use of mobiles to support emergency services, transport and other location based services.

I met with a content originator last week who has the exclusive license for a content service. He has been doing the rounds with all the operators and content aggregators. I would guess that he’s had 15 meetings with various industry people. He is now close to working out what is right for his business – whether he can go direct to an operator or whether he should deal via an aggregator, what he will need to pay for upfront, and what revenue share is possible down the track. In his case he will need to fund WAP and web sites to deliver his content.

A new entrant will need to evaluate revenue shares and the different deals offered by content aggregators and telecommunications operators. It’s important to do your homework with as many people as possible and work out what the best deal is that will work for your particular product and niche.