Going mobile: the new growth area
By Ding Yining and Zhu Shenshen |
April 22, 2010, Thursday
|
Print Edition
Print Edition
FIRMS are seeking opportunities to provide content for more than 700 million Chinese mobile phones, according to industry insiders.
Big names, from China Mobile, Shanda and 3G.cn to Nokia, aim to generate revenue through reading, video, music and game services for Chinese mobile users.
China Mobile has teamed up with Shanda Literature, a subsidy of Shanda Corp, and the Shanghai Pavilion of the World Expo 2010 to provide readers with the latest information as well as literary pieces focused on Shanghai culture.
Viewers who get access to the "Expo" sector on the mobile reading platform don't have to pay connection fees and subscription fees.
China Mobile now has more than 20 million registered users for its online reading service with average daily visitors at around 1 million.
"Users will become more willing to pay for online reading material and creative fiction, and content providers' business models will be more mature," said Fang Li, an analyst with research firm Analysys International. "Operating income from the sector is expected to reach 588 million yuan (US$86 million) in 2010."
The China Internet Network Information Center said in its latest report that the user base for online reading reached 162 million, or 42.3 percent of the total number of Chinese users, at the end of last year.
"We hope to become the biggest content provider of online fiction and cooperate with mobile phone makers and other equipment providers to attract more users," said Liang Xiaodong, chief financial officer of Shanda Literature.
Mobile service provider 3G.cn has worked with the country's six biggest online video sharing Websites, including Tudou.com and Youku.com, to provide mobile users easy access to video content.
The provider has upgraded its mobile browser Go, which has 15 million users, to fully support video playing or downloading on mobiles.
"The mobile Internet is a huge market, and 3G will make 2010 a milestone year in mobile applications," said Zhang Xiangdong, 3G.cn's president.
China's mobile Internet traffic is expected to surpass that on computers, Zhang said.
The huge traffic on mobiles will boost service providers' income through advertising or profit sharing with carriers, according to analysts.
China's 3G development and the popularity of smartphones both fuel the trend. China issued 3G licenses in January last year, and this allows people to gain access to more services on phones.
Meanwhile, smartphone systems support the installation of more mobile applications.
In 2010, global mobile phone sales are expected to jump 11.5 percent to hit 1.3 billion units, thanks to the sales growth in smartphones.
Nokia will maintain its leading position with 37 percent market share, according to iSuppli Corp, a United States-based IT consulting firm.
Nokia, the world's No. 1 phone seller, launched free legal music download services for handset users in China two weeks ago.
It was the first major device vendor to launch a music service for China's huge number of mobile users.
Through Nokia's "Comes with Music" service, the company offers music from major labels and local partners, including Universal Music Group and Sony Music Entertainment, to allow users to download free tracks to handsets or personal computers.
Initially, the service will be available on eight Nokia devices, including the X6, 5800w and 5230.
Big names, from China Mobile, Shanda and 3G.cn to Nokia, aim to generate revenue through reading, video, music and game services for Chinese mobile users.
China Mobile has teamed up with Shanda Literature, a subsidy of Shanda Corp, and the Shanghai Pavilion of the World Expo 2010 to provide readers with the latest information as well as literary pieces focused on Shanghai culture.
Viewers who get access to the "Expo" sector on the mobile reading platform don't have to pay connection fees and subscription fees.
China Mobile now has more than 20 million registered users for its online reading service with average daily visitors at around 1 million.
"Users will become more willing to pay for online reading material and creative fiction, and content providers' business models will be more mature," said Fang Li, an analyst with research firm Analysys International. "Operating income from the sector is expected to reach 588 million yuan (US$86 million) in 2010."
The China Internet Network Information Center said in its latest report that the user base for online reading reached 162 million, or 42.3 percent of the total number of Chinese users, at the end of last year.
"We hope to become the biggest content provider of online fiction and cooperate with mobile phone makers and other equipment providers to attract more users," said Liang Xiaodong, chief financial officer of Shanda Literature.
Mobile service provider 3G.cn has worked with the country's six biggest online video sharing Websites, including Tudou.com and Youku.com, to provide mobile users easy access to video content.
The provider has upgraded its mobile browser Go, which has 15 million users, to fully support video playing or downloading on mobiles.
"The mobile Internet is a huge market, and 3G will make 2010 a milestone year in mobile applications," said Zhang Xiangdong, 3G.cn's president.
China's mobile Internet traffic is expected to surpass that on computers, Zhang said.
The huge traffic on mobiles will boost service providers' income through advertising or profit sharing with carriers, according to analysts.
China's 3G development and the popularity of smartphones both fuel the trend. China issued 3G licenses in January last year, and this allows people to gain access to more services on phones.
Meanwhile, smartphone systems support the installation of more mobile applications.
In 2010, global mobile phone sales are expected to jump 11.5 percent to hit 1.3 billion units, thanks to the sales growth in smartphones.
Nokia will maintain its leading position with 37 percent market share, according to iSuppli Corp, a United States-based IT consulting firm.
Nokia, the world's No. 1 phone seller, launched free legal music download services for handset users in China two weeks ago.
It was the first major device vendor to launch a music service for China's huge number of mobile users.
Through Nokia's "Comes with Music" service, the company offers music from major labels and local partners, including Universal Music Group and Sony Music Entertainment, to allow users to download free tracks to handsets or personal computers.
Initially, the service will be available on eight Nokia devices, including the X6, 5800w and 5230.
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