SOURCE: M:Metrics

April 17, 2007 03:00 ET

M:Metrics: Increasing Cameraphone Ownership Forces a New Focus for Graphics Publishers

Graphics Purchasers Decline as Cameraphones Account for the Majority of Devices in the United States and Western Europe

SEATTLE, WA and LONDON -- (MARKET WIRE) -- April 17, 2007 -- M:Metrics, the mobile market authority, today announced a milestone in mobile industry, as the number of cameraphone owners climbed to 106 million in the United States, crossing the 50 percent threshold. Cameraphones are even more ubiquitous in European markets, led by the United Kingdom where three out of every four mobile subscribers own a camera phone. The measurement firm reports that the proliferation of this technology is driving a decline of one of the first sources of mobile entertainment revenue: the sale of wallpapers and phone graphics, as increasing numbers of people personalize their phone with photos taken on the device.

Cameraphone Penetration and Graphics Purchases: February 2007

                                             % subscribers
                                             who saved
                            % Subscribers    cameraphone
                            Who Purchased    photo as
                           Screensaver or    screensaver/
Country       Penetration       Wallpaper    wallpaper
US                     51%            3.3        16.7
UK                     75%            2.0        28.3
Germany                70%            2.0        20.4
France                 63%            2.1        26.6
Spain                  74%            2.6        31.2
Italy                  69%            2.9        31.7

Source: M:Metrics, Inc., Copyright © 2007. Survey of mobile
subscribers. Data based on three-month moving average for period
ending 28 February 2007, n= 102,267 mobile subscribers in France,
Germany, Italy, Spain, the UK and US.
"While a cameraphone in the pocket of most mobile phone owners may have picked the proverbial pockets of graphics publishers, the penetration of this technology has a positive impact on operator data revenues overall as consumers increasingly purchase photo messaging bundles," said Mark Donovan, senior vice president and senior analyst, M:Metrics.

Despite a slackening of demand for graphics, Donovan notes that such content is used to good effect by purveyors of off-portal content to entice subscribers to sign up for subscriptions. "Graphics remain a preferred type of content because of the more attractive terms typically associated with licensing of branded graphical content compared with the revenue splits that music labels and publishers expect from ringtones. However, graphics publishers have to work a lot harder and offer compelling, branded content to generate consumer interest."

Photo messaging has consistently been among the most popular mobile applications across geographies that M:Metrics measures, with as many as 31.3 percent of mobile subscribers sending photos or videos to other phones, e-mail addresses or posting to blogs.

Used network services for photos/videos

                          August 2006           February 2007
Country           Subscribers     Percent   Subscribers    Percent
France               8,796,960       20.5     9,432,842       21.2
Germany              9,238,968       20.5     9,590,281       20.8
Italy               13,156,342       31.3    13,779,059       31.3
Spain                8,671,452       28.4     9,316,644       29.1
UK                  13,363,233       30.7    13,187,929       29.6
US                  28,218,336       14.5    30,692,545       14.8

Source: M:Metrics, Inc., Copyright © 2007. Survey of mobile
subscribers. Data based on three-month moving average for period
ending 31 August, 2006, n= 12,458 French, 15,078 German, 11,909
Italian, 12,228 Spanish, 15,051 UK and 35,016 US and the period
ending 28 February
"As the technological abilities and habits of mobile users evolve with the capabilities of the devices they own, new mobile content business opportunities are both created and destroyed," observed Donovan. "As we reported, the proliferation of musicphones is also expanding rapidly, so a natural question is how the music industry will respond as these connected creators potentially take a bite out of the ringtone market."

M:Metrics applies trusted media measurement methodologies to assess the audience for mobile content and applications. As the world's most authoritative mobile market measurement firm, M:Metrics delivers the most accurate mobile market metrics through the world's largest monthly survey of mobile subscribers as well as automated data collection methodologies. Below are the findings of its February Benchmark Survey.

French Mobile Subscriber Monthly Consumption of Content and
Applications

M:Metrics Benchmark Survey: February 2007

                                 Subscribers           Percent
Activity                             (1000s)  Percent   Change
Sent Text Message                     32,811    73.7%     2.5%
Used Photo Messaging                   9,433    21.2%     0.8%
Browsed News and Information           3,308     7.4%     1.9%
Used Personal E-Mail                   2,851     6.4%     3.8%
Purchased Ringtone                     2,297     5.2%    -0.1%
Used Mobile Instant Messenger          1,431     3.2%     1.2%
Used Work E-Mail                       1,086     2.4%     8.9%
Purchased Wallpaper or
 Screensaver                             932     2.1%    -4.7%
Downloaded Mobile Game                   630     1.4%    -1.6%

Source: M:Metrics, Inc., Copyright © 2006. Survey of French
mobile subscribers. Data based on three-month moving average
for period ending 28 February, 2007, n= 12,847

German Mobile Subscriber Monthly Consumption of Content and
Applications

M:Metrics Benchmark Survey: February 2007

                                Subscribers            Percent
Activity                             (1000s)  Percent   Change
Sent Text Message                     37,541    81.6%     1.6%
Used Photo Messaging                   9,590    20.8%     5.2%
Used Personal E-Mail                   2,633     5.7%     1.5%
Purchased Ringtone                     2,311     5.0%     6.1%
Browsed News and Information           1,531     3.3%     3.0%
Used Mobile Instant Messenger          1,488     3.2%     3.5%
Used Work E-Mail                       1,349     2.9%     4.0%
Downloaded Mobile Game                 1,277     2.8%     6.5%
Purchased Wallpaper or
 Screensaver                             922     2.0%    -0.3%

Source: M:Metrics, Inc., Copyright © 2006. Survey of German
mobile subscribers. Data based on three-month moving average
for period ending 28 February, 2007, n= 15,834

Italian Mobile Subscriber Monthly Consumption of Content and
Applications

M:Metrics Benchmark Survey: February 2007

                                Subscribers            Percent
Activity                             (1000s)  Percent   Change
Sent Text Message                     37,326    84.8%    -0.2%
Used Photo Messaging                  13,779    31.3%    -1.9%
Used Personal E-Mail                   3,777     8.6%    -5.3%
Used Mobile Instant Messenger          2,550     5.8%    -3.6%
Browsed News and Information           2,536     5.8%   -11.7%
Purchased Ringtone                     2,227     5.1%    -5.6%
Used Work E-Mail                       2,006     4.6%    -1.5%
Downloaded Mobile Game                 1,468     3.3%    -6.7%
Purchased Wallpaper or
 Screensaver                           1,283     2.9%    -1.5%

Source: M:Metrics, Inc., Copyright © 2006. Survey of Italian
mobile subscribers. Data based on three-month moving average
for period ending 28 February, 2007, n= 12,864

Spanish Mobile Subscriber Monthly Consumption of Content and
Applications

M:Metrics Benchmark Survey: February 2007

                                Subscribers            Percent
Activity                             (1000s)  Percent   Change
Sent Text Message                     27,302    85.3%     2.2%
Used Photo Messaging                   9,317    29.1%     5.6%
Used Personal E-Mail                   2,686     8.4%     1.9%
Used Mobile Instant Messenger          2,176     6.8%     1.2%
Purchased Ringtone                     2,158     6.7%    -3.5%
Browsed News and Information           1,825     5.7%    -3.1%
Downloaded Mobile Game                 1,777     5.6%    -0.8%
Used Work E-Mail                       1,616     5.1%     0.1%
Purchased Wallpaper or
 Screensaver                             837     2.6%    -0.1%

Source: M:Metrics, Inc., Copyright © 2006. Survey of Spanish
mobile subscribers. Data based on three-month moving average
for period ending 28 February, 2007, n= 13,354

U.K. Mobile Subscriber Monthly Consumption of Content and
Applications

M:Metrics Benchmark Survey: February 2007

                                Subscribers            Percent
Activity                             (1000s)  Percent   Change
Sent Text Message                     38,080    85.6%     0.3%
Used Photo Messaging                  13,188    29.6%    -1.4%
Browsed News and Information           6,092    13.7%    -4.0%
Used Personal E-Mail                   3,136     7.0%    -1.7%
Downloaded Mobile Game                 2,252     5.1%    -6.6%
Purchased Ringtone                     1,949     4.4%    -5.7%
Used Mobile Instant Messenger          1,854     4.2%    -0.6%
Used Work E-Mail                       1,571     3.5%    -6.0%
Purchased Wallpaper or
 Screensaver                             895     2.0%    -1.1%

Source: M:Metrics, Inc., Copyright © 2006. Survey of U.K.
mobile subscribers. Data based on three-month moving average
for period ending 28 February, 2007, n= 15,536

U.S. Mobile Subscriber Monthly Consumption of Content and
Applications

M:Metrics Benchmark Survey: February 2007

                                Subscribers            Percent
Activity                             (1000s)  Percent   Change
Sent Text Message                     81,184    39.2%     3.7%
Used Photo Messaging                  30,693    14.8%     4.3%
Browsed News and Information          20,480     9.9%    -0.5%
Purchased Ringtone                    19,999     9.7%    -0.1%
Used Personal E-Mail                  17,343     8.4%     2.4%
Used Mobile Instant Messenger         13,797     6.7%     9.1%
Used Work E-Mail                      10,187     4.9%     0.0%
Purchased Wallpaper or
 Screensaver                           6,839     3.3%    -0.9%
Downloaded Mobile Game                 6,752     3.3%    -7.4%

Source: M:Metrics, Inc., Copyright © 2006. Survey of U.S.
mobile subscribers. Data based on three-month moving average
for period ending 28 February, 2007, n= 31,832
About M:Metrics

M:Metrics is the mobile market measurement authority. As the only research firm to measure the audience for mobile media, M:Metrics provides the most accurate metrics on actual mobile content consumption by applying trusted media measurement methodologies to the mobile market. M:Metrics' monthly syndicated data service gives clients the critical insights and intelligence required to inform smart business strategies and the competitive benchmarks needed to evaluate the performance of competitors and partners. M:Metrics is a private, venture-funded corporation headquartered in Seattle, with offices in San Francisco and London.

About M:Metrics Data

Based on continually refreshed samples of nationally representative mobile phone consumers, M:Metrics reports summarise market size, device reach, and key demographic and mobile phone usage characteristics.

The data presented here is drawn from an extensive survey questionnaire that collects specific device model and carrier subscription information from each month's sample of mobile phone subscribers, and also drills down into specific details related to current and past usage of various mobile phone applications and content. Data collected from each sample are statistically balanced and projected to the total national population of mobile phone subscribers.

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