Omnifone/MusicStation: Predictions, anyone?

Picture 1I noticed last week that Omnifone launched their MusicStation service. Not in the UK, but abroad. Way abroad. Sweden to be precise.

They’ve got 30 mobile operators taking the service around the world, reaching a potential 100 million users.

Although I am assuming that each of these mobile operators also have their own shite, rubbish, half-baked iTunes-wannabe live on their user portals as well? (I’ll always remember Orange’s absolutely abysmal music service for WindowsMobile SPV users.) If so, I wonder how the operators are reconciling launching MusicStation to compete with — and quite possibly kill — their own £3 quid a ringtone or £3 quid a download music services?

Unclear.

MusicStation definitely looks like an interesting concept. I was a little bit disappointed though… or perhaps, hugely disappointed, (depending on the level of geekiness I’m exhibiting at the time) when I read the news and flew off to the MusicStation site to get a copy. I knew it was operator-supplied.. but I somehow thought you would be able to also download it to your handset as well.

Alas no — further, if you’re interested in getting it, well stuff you. Stuff you with bells on. ;-) That’s the site’s message at the moment because it’s WHERE section reads:

Omnifone is partnering with operators with networks in the following countries:

… and goes on to list a load of countries such as the UK. I tried clicking and found that ‘UK’ is just a text link.

It really is operator supplied. I’ll need to sit like a good boy, patient, smiling and with my hands on my lap, until my operator(s) deign to introduce the service to me.

UK operator 3 is one of the biggest sellers of digital music in the UK. Quoting from a release I covered about their music service last year:

3 now represent 10.5% of the total UK singles market and stand second only to iTunes in UK digital music sales.

Ergo I doubt 3 will want to get into bed with MusicStation. You never know, though.

It’s a good strategy, anyway, using the how-do-we-increase-ARPU mobile operators to reach 100 million potential users for MusicStation. The negative is that most operators have spent the last three to four years flogging uber-shit music services to pissed-off customers, many of whom will be delighted iTunes users. All of whom, I’m willing to bet, would reaaaaally like an iPhone. (A recent study I read this week reckoned that 19 million Americans want an iPhone…)

The history doesn’t bode well. If consumers have long memories of being fleeced £3 for a crap quality music track then they’re going to be very suspect of any music-related service being hawked via their airtime provider. But you don’t need to convert many over before you’ve got a fairly decent income and a bit of traction.

Still, if you’ve got a good handset and you want music on your handset — properly — MusicStation appears to be a rather good solution.

£1.99 a week or a tenner a month to have Napster style access to music on your handset.

Hmm. Four or five months of this and you’d have spent enough to get a Shuffle. Your own Shuffle. Yet, this pricepoint is low enough to be appealing to many — to the masses — who don’t want to blow more money on another device. Looking at it in terms of an album purchase — for the cost of buying a CD album, you can have access to tens of thousands of albums for the same price.

It kills Napster doesn’t it? In concept, anyway. They’ve been wholly negligent with mobile devices, Napster. To this day, their Napster-to-Go service still only works on a few MP3 players and cumbersome Windows Mobile handsets.

What’s your viewpoint on MusicPhone?

Update: Omnifone’s not due out until October…

About Ewan

Ewan is Founder and Editor of Mobile Industry Review. He writes about a wide variety of industry issues and is usually active on Twitter most days. You can read more about him or reach him with these details.

  • http://www.trendcatching.com jamescoops

    this thing has no soul. its pretty poor the way they have virtually no D2C front-end at all – they dont even rank for their brand name in google.

  • http://www.moblog.co.uk alfie

    afaik, the musicstation service is very well thought of by at least two large and one ‘Indie’ (although still large) record labels, and these are the guys who will be instrumental alongside the operators in making it a success. I agree with James though, very little emphasis from Omni so far in D2C or brand recognition/presence – maybe they just don’t care as long as their B2B presence is high?

  • http://www.technokitten.com technokitten

    Hmm. They tried d2c in a previous iteration, myfone, about 2 years ago. This was in conjunction with Metro and possibly other media owners. Metro’s the one I know about. It bombed. I signed up and downloaded the java app but it didn’t really work properly. It was all around ringtones then (understandable). But what piqued me, for such a new service, there was ZERO customer communication – not an email, text message – nothing, to encourage me to use it more, or to find out what I thought of the service. Typical behaviour of a tech company. They think customers are either psychic or will love their stuff so much, they don’t need any encouragement. Omnifone still owns the domains myfone.com and 87878.tv/.net.

    I got the whole sales pitch from their sales guy 2 years ago and was underwhelmed then. I’m still somewhat underwhelmed until I see the product actually working. The glitzy stuff on the website looks great, but I need to see a real live working version in my hand to really *get* it.

    But 2 years have passed since then. They obviously had deep enough pockets to keep going and hopefully, by now, they have a product that actually works and is ready for market. They clearly went live way to early in the previous iteration.

    I wonder if they have a customer communication plan to support the product actually working though? There’s nothing in the management team’s one-way media background to suggest that they do but I’ll be *very* happy to be proved wrong on that point as I don’t want to see it fail. But if they’re relying on the network operators to do the communication and relationship stuff, then we know they don’t know much about that stuff either as their focus is on customer retention and acquisition generally, rather being service specific. And because this is on a phone, and being led by corporates (big music labels and MNOs) and not a funky start-up, I don’t think they have that credibility that means you get the tell a friend vibe that we’ve seen for the likes of last.fm, flickr, facebook et al.

    One thing they’ve been extraordinarily good at though is PR. To have won an award at The Meffy’s without having a live, working product with proven customer usage behind is both controversial and astonishing. Fair play to them. They’re doing *something* right. Is it just the PR though ;)

    I doubt MusicStation will be the saviour of the music industry, but maybe it will be one of the many things that will keep music alive for the masses and keep revenues trickling through to the labels. I don’t think anything will save the labels as they stand. They need to change and adapt to the new always-on, always-connected world and it’s hard for any large entity to move at any speed and change habits of generations.

    What happens when Pandora and Last.FM go properly mobile and we’re all on flat rate mobile data plans and have mobile broadband? Ok, maybe that’s a vision for the medium or long-term future, but it’s gonna happen right? Will Musicstation still matter? And will the yoof ov 2day be interested in something that’s come from Mr corporate network operator (can you think of a feminine network operator?) or will they (the yoof) prefer to sideload all that content their mate copied for them on to their hard-drive? And they’re the ones who will make or break this service. And they’re also the ones who don’t have the cash to splash and are on pre-pay phones (avg £2 credit) – yes, I’m generalising here, but it’s not an unrealistic picture for the yoof market in Britain. Or is this a service for the 35 year old male who’s gadget hungry and enjoys a good gig or festival too? And is it him who’ll drive this stuff?

    I don’t know the answer/s, and I suspect there isn’t one single one. But all these issues were raised at the recent Knock Knock conference in Denmark talking about the future of music and also at a Music Tank panel session I did a month or two back. Links to the full webcast of the Knock Knock conference on my blog http://technokitten.blogspot.com/2007/06/knock-knock-future-of-music-was-awesome.html

    Really interested to see how this one pans out.

  • http://www.technokitten.com technokitten

    Interesting article in this week’s mobile entertainment magazine re Omnifone on page 10 – you can get a subscription to the mag at http://www.mobile-ent.biz for either the print version or the pdf version of the mag. The article, entitled ‘Action Station’ is well worth a read. As is the rest of the magazine.

    Most interesting of course in the article is the quote from Michael Bornhaeusser, CEO of SDC. He, among many, including myself, was not happy with Omnifone’s controversial winning of the Meffy Award and he says:

    “Having the best music service award dedicated to Omnifone is a scandal in my opinion. It is not fair to give an award to a service that hadn’t been launched and has never sold a single track. The jury has disqualified themselves with a decision to give the award to a slide show presentation when service providers like 3UK/Groove – selling 2 million tracks a month – are not taken into account.”

    And I would have to agree. I’d love to understand the judging panel’s criteria and rationale. Maybe they know more than meets the eye. In which case, it’s time to spill!

    Since the Meffy’s, Omnifone has announced a launch with Telenor in Sweden and claims to have 30 more ‘deals’ in place. What stage those deals are at is anyone’s guess.

    Anyone in Sweden tried the service on Telenor yet? Any good?

    Oh, just spied this as well http://www.smstextnews.com/2007/06/omnifone_version_1_-_the_myfone_presentation.html
    Most interesting.

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