The Third Screen Demands a New Business Model

The mobile phone--the emerging Third Screen in a world of always-on connectivity--will soon command a new business model.  Expect phone access for the Bubble Generation to soon look a lot more like TV and Internet services.  And be priced accordingly.  This has important business implications for all of us.

From the outset, telecoms have sought to control the value chain in mobile telephony by over-controlling content.  Hoping not to become another set of dumb pipes, the phone companies have tried to shackle consumers with proprietary content and features.  Those days are coming to an end.  Soon, telephone brown-shirts like Verizon, Sprint and Cingular will see the end of their info-tyranny.  Some are already scrambling to try new competitive schemes--like free services and flat price rates to win market share and consumer loyalty.  It's a beautiful thing.

A great example is the recent announcement of the SYNC phone by Cingular.  The new phone/service allows users to download music to their phones for free, to music players for 15 bucks a month.  And just last week Hutchison Whampoa, in cooperation with a group of global Internet companies and handset makers Nokia and Sony Ericsson, launched broadband mobile Internet access on the same flat fee cost model as fixed broadband Internet, including free Skype calling and unlimited web browsing and instant messaging from mobile handsets. 

How will consumers be asked to pay the freight?  As I have suggested here before, any push ad programs will have to be carefully executed.  The BubbleGen consumer appreciates that content is a value, but they are pressed for time and attention and won't pay much of either to imposition advertising on their phones. 

We all must change our archaic view of the mobile phone as a cordless version of a land line with special infrastructure pricing issues.  It is a 2.0 medium unto itself, combining TV, PC and (soon) instant-on communications.  The sooner we consumers get over our old biases the sooner the Third Screen will arrive in full force.

Comments

[jack]

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