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Audio Interview: Jamba’s Markus Berger-de Leon On Community Plans

By Peggy Anne Salz - Thu 21 Dec 2006 05:43 PM PST

imageIs the ringtone dead? One way or the other - it’s no concern to Verisign’s Germany-based Jamba (also known as Jamster outside Germany). The company - widely recognized as the first European D2C content provider to make the sale of ringtones a mainstream business - has prepared well for life after the ringtone, launching a variety of new music download services and software that makes the automatic synchronization of PC and mobile possible. I spoke with Markus Berger-de Leon, Jamba’s CEO, to get his perspective on where the mobile content business is going and where Jamba will be once the company (in which News Corp. recently bought a 51 percent stake) has pooled the digital assets belonging to Fox Mobile Entertainment. The full audio MP3 of the interview is here for download (7.35 MB, 18.2 minutes).

Look for Jamba launch a community service before Christmas. Berger-de Leon wouldn’t provide details, but he hinted the company is also planning a “very big push into super-distribution.” In fact, Jamba’s P2P file-sharing scheme will not only be large scale - it will be legal.

Networking next: Jamba hasn’t necessarily shifted away from selling ringtones - but it is convinced there may be more money in music downloads, games and videos. The next step for Jamba is to “merge” mobile content and social networks (such as Jamba’s “I Love” community, which leads the pack in Poland and Russia). As Berger-de Leon put it: It’s about allowing users to connect with content and with each other. “Jamba will offer the communication facilities around that capability.”

Sell content, not advertising: While Berger-de Leon is positive about the outlook for mobile advertising, he’s not about to bet the farm on it. “[Mobile advertising] is something we’re exploring ourselves but more as a marketing channel for our own services. We’re currently experimenting with ad-funded content….I think we yet have to see how viable a model that is and how well [it] can work.” Jamba has also taken a keen interest in mobile search, participating as a trial partner in mobile search schemes involving all the usual suspects.

Keep ‘em coming:
Subscriptions will continue to be the end-game for content companies. “I only see two models that really work:  Subscription and ad-funded. I don’t see anything in between and I don’t believe you can build a sustainable business model without [them].”

Join the search: Can a major brand like Jamba get mileage out of offering mobile search as a service and then rake in the advertising revenues? Berger-de Leon is sold on the idea. “It’s certainly something we’re thinking about.  There are not many sites around the world that have the number of WAP traffic or mobile Internet traffic that we have.”

The 2007 mega-trend (drum roll, please): Improved usability (primarily enabled by client software and OTA content updates) will take center stage. “The mass market still has various issues with being able to order and download content [on their mobile devices] and I think 2007 again will be about helping those people to get on board…. In spite of all these mega-trends that are certainly there, we should not forget the user and all the things we should do for users to make sure they actually have a positive experience with our service.”

The full audio MP3 of the interview is here for download (7.35 MB, 18.2 minutes).  Or stream the show below:

Posted in: Companies, News Corp., VeriSign, Entertainment, Features, Predictions 2007



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6 Responses:
  • From Taariq Lewis Fri 22 Dec 2006 09:09 AM

    Very compelling insight into how the mobile content companies are diversifying their consumer reach in the online space to create “sticky” interaction via music and community linked to mobile.  They are not the first to move with this model and I believe others will follow-suit.  I look forward to hearing more from the other mobile content players in the space innovating around the wireless content market.

  • From Peggy Sun 24 Dec 2006 06:24 AM

    Taariq, the combination of content and community is undoubtedly what will attract users in droves in 2007. But the real excitement will likely be around the services (such as mobile search) that allow media companies to monetize eyeballs. Jamba is just one of a number of companies thinking this through. Watch for USA Today to introduce its own twist on this approach soon.

  • From Klaus Mon 01 Jan 2007 12:06 PM

    Jeah Markus, it is all about fooling stupid kids into subscriptions. How can someone get away with such a business model?

    Not only will you burn in hell, you will be replaced as CEO when the next wave of regulation strikes.

  • From Diana Avivi Thu 08 Feb 2007 04:07 PM

    Attention – Manager of Business Development

    Hi,

    We will be participating at the NRB 2007 Exhibition in the Israel Pavilion and would like to take this opportunity to introduce you to a unique solution to enable all Bible Believers to convey their personal prayers, which will be heard in the Holy City of Jerusalem, Israel, or at any other Holy Site of their choice.

    We are offering three (3) kinds of services:

    Extending to one and all the possibility to actually see live video of the requested Holy Sites

    To convey prayers from any single person to any Holy Site in Jerusalem or elsewhere

    A fund raising tool that enables religious organizations to raise money and thereby support their activities

    If you feel that we that we could combine our interests, we would be very happy to meet you at the above Exhibition and discuss further mutual cooperation.  Please visit our website – http://www.OnSitePrayer.org - for additional information.

    We invite you to contact us via e-mail -

    Diana Aviv

    Assistant to the Chairman

    POIP

  • From Andrew Deal Mon 14 May 2007 01:57 PM

    I think the trends are driving both the industry and the users together.

    We feel we have found a way to please all parties

  • From Jess Mattson Fri 15 Aug 2008 04:31 AM

    Typical German incompetence. What a failure and unsuccessful company and its poorly managed top. They didnt resign, they were all asked by American based NEws Corp to get out before security was called.  Americans, the master of global business, efficiency and knowing how to turn a profit, wont put up with silly, wannabe german businessmen. Let us not forget that Jamba/Jamster is listed in several class action suits for FRAUD and illegal advertising and billing. There are several bigger, more successful firms providing content for free...non subscription based...once again, the Germans are behind the times. I remember seeing Markus Berger-de Leon on a few German TV shows, where he basically was ran off, sweating and looking rather ghastly after being asked very simply, non-aggressive direct questions. This man doesnt have the business balls nor experience to run with a REAL company. What a joke...that is why he hides behind pretend companies...just another incompetent German playing business...but not making any headway.

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