SOURCE: M:Metrics

July 10, 2006 04:17 ET

M:Metrics: Will Smarter Phones Drive Content Consumption?

Although the Population of Smart-Phone Users Is Small, They Lead the Way in Multimedia Consumption

SEATTLE, WA -- (MARKET WIRE) -- July 10, 2006 --M:Metrics, the mobile market authority, today issued the findings of its May Benchmark Survey. The firm found that while smart-phone owners comprise a small percentage of the overall population of mobile phone users, large percentages of smart-phone users are consuming mobile content. Contrary to popular belief, those carrying these powerful devices are not using them exclusively for productivity applications, but are also using them to view mobile video, play mobile games and listen to mobile music in addition to using them for personal e-mail and wireless Web access.

Table 1: Smart-phone penetration and consumption

Country    Smart-   Played    Watched  Used  Listened   Sent     Accessed
           phone   downloaded  mobile E-Mail to mobile photo or    news
        penetration   game     video          music   video over   and
                                                       network  information
France      3.4%     12.0%     15.1%   20.3%   18.7%    45.7%      39.1%
Germany     5.8%     15.5%      7.7%   18.9%   19.9%    33.7%      22.3%
United
 Kingdom    6.6%     23.0%      9.1%   20.9%   24.8%    47.3%      39.7%
United
 States     2.0%     22.3%      8.8%   50.8%   16.1%    22.8%      54.6%

Source: M:Metrics, Inc., Copyright © 2006. Survey of mobile subscribers.
Data based on three-month moving average for period ending 31 May, 2006,
n= 12,631 French, n=15,122 German, n=14,913 UK, n=33,952 U.S.
mobile subscribers.
Compared to the average mobile phone subscribers, smart-phone owners are avid users of mobile multimedia. In France and Germany, nearly half of smart-phone owners sent video or a photo over the network, compared with a market average of 18.6 percent in France, and 19.5 percent in Germany. Nearly a quarter of UK smart-phone owners reported listening to music on their handset, versus the average of 5.8 percent. The parallels are similar across the geographies. French smart-phone owners are a staggering 11 times more likely to listen to music on their handset compared with the market average of 1.7 percent, while their American counterparts are more than eight times more likely to do so.

Video has been particularly popular among French smart-phone owners, at 15.1 percent, versus a countrywide average of 1.8 percent. There is also a relatively high conversion rate to video among U.S. smart-phone owners, who are more than six times more likely to watch video than a random subscriber, as the U.S. average for video consumption is 1.3 percent.

"Whereas mass-market Symbian devices have flooded the European market, the smart-phones in the hands of most U.S. consumers are high-end devices produced by Palm and RIM that are targeted to appeal to mobile professionals concerned with personal productivity," said Seamus McAteer, senior analyst and chief product architect, M:Metrics. "The Motorola Q, which is being marketed heavily as a stylish device that's fun as well as productive, and is being offered at consumer-friendly price points, could help broaden the market for smart-phones and spur content consumption."

At two percent penetration, the U.S. lags Western Europe in Smart-phone ownership. Britain tops France and Germany, at 6.6 percent market adoption. All the top three devices in France, Germany and the United Kingdom are Nokia devices. The Palm Treo is the smart device of choice for Americans, followed by the BlackBerry.

Table 2: Most Popular Smart-phones Used as Primary Handset

Top 3 Smart-phones - France     Subscribers
Nokia 6680                      374,477
Nokia 6630                      287,723
Nokia 6600                       98,122
Top 3 Smart-phones - Germany    Subscribers
Nokia 6630                      278,818
Nokia 6600                      250,682
Nokia 7650                      237,449
Top 3 Smart-phones - UK         Subscribers
Nokia N70                       471,874
Nokia 6680                      433,405
Nokia 6630                      341,718
Top 3 Smart-phones - US         Subscribers
Palm Treo 650CDMA               573,660
Palm Treo 650GSM                269,053
RIM BlackBerry 7520             267,912

Source: M:Metrics, Inc., Copyright © 2006. Survey of mobile subscribers.
Data based on three-month moving average for period ending 31 May, 2006,
n= 12,631 French, n=15,122 German, n=14,913 UK, n=33,952 U.S. mobile
subscribers.
"Without a doubt, Symbian devices compel their owners to use mobile content. Varying by networks in the UK, 45 to 70 percent of N-70 users report that they used their phone to download or browse for content," said Paul Goode, vice president and senior analyst, M:Metrics. "We're seeing impressive conversion rates across all forms of mobile content among users of these handsets, and see a direct correlation between device attributes (screen size, screen resolution and network speed) and propensity to consume content."

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 largest monthly survey of mobile subscribers in the U.S., U.K., Germany and France, as well as automated data collection methodologies. Below are the findings of its May Benchmark Survey.

French Mobile Subscriber Monthly Consumption of Content and Applications
M:Metrics Benchmark Survey: May 2006

Activity               Subscribers (000s)      Percent    % Change
Sent Text Message             29,355              69.1%        0.7%
Used Photo Messaging           7,919              18.6%        8.1%
Browsed News and
 Information                   3,319               7.8%        7.6%
Purchased Ringtone             2,748               6.5%      (-3.4%)
Used Personal E-Mail           2,548               6.0%       11.6%
Purchased Wallpaper or
 Screensaver                   1,313               3.1%      (-0.6%)
Used Mobile Instant
 Messenger                     1,241               2.9%        7.9%
Used Work E-Mail                 857               2.0%        9.7%
Downloaded Mobile Game           500               1.2%       13.9%

Source: M:Metrics, Inc., Copyright © 2006. Survey of French mobile
subscribers. Data based on three-month moving average for period ending
31 May, 2006, n= 12,631


German Mobile Subscriber Monthly Consumption of Content and Applications
M:Metrics Benchmark Survey: May 2006

Activity               Subscribers (000s)      Percent    % Change
Sent Text Message             35,606              80.0%        2.6%
Used Photo Messaging           8,696              19.5%        4.0%
Purchased Ringtone             3,007               6.8%      (-0.2%)
Used Personal E-Mail           2,716               6.1%        0.4%
Browsed News and
 Information                   1,763               4.0%      (-3.5%)
Used Mobile Instant
 Messenger                     1,547               3.5%      (-0.9%)
Used Work E-Mail               1,399               3.1%        3.8%
Purchased Wallpaper or
 Screensaver                   1,289               2.9%        0.2%
Downloaded Mobile Game         1,079               2.4%        1.6%

Source: M:Metrics, Inc., Copyright © 2006. Survey of German mobile
subscribers. Data based on three-month moving average for period ending
31 May, 2006, n= 15,122


U.K. Mobile Subscriber Monthly Consumption of Content and Applications
M:Metrics Benchmark Survey: May 2006

Activity              Subscribers (000s)       Percent    % Change
Sent Text Message             36,359              84.6%      (-0.1%)
Used Photo Messaging          12,879              30.0%        1.6%
Browsed News and
 Information                   6,376              14.8%      (-1.1%)
Used Personal E-Mail           2,892               6.7%        0.0%
Purchased Ringtone             2,562               6.0%      (-6.6%)
Downloaded Mobile Game         1,953               4.5%      (-4.9%)
Used Mobile Instant
 Messenger                     1,754               4.1%        1.4%
Used Work E-Mail               1,337               3.1%        3.9%
Purchased Wallpaper or
 Screensaver                     994               2.3%      (-2.4%)

Source: M:Metrics, Inc., Copyright © 2006. Survey of U.K. mobile
subscribers. Data based on three-month moving average for period ending
31 May, 2006, n= 14,913


U.S. Mobile Subscriber Monthly Consumption of Content and Applications
M:Metrics Benchmark Survey: May 2006

Activity              Subscribers (000s)       Percent    % Change
Sent Text Message             69,048              36.3%        5.9%
Used Photo Messaging          22,644              11.9%        8.0%
Browsed News and
 Information                  19,038              10.0%        5.4%
Purchased Ringtone            18,830               9.9%        4.0%
Used Personal E-Mail          13,823               7.3%        7.2%
Used Mobile Instant
 Messenger                    12,221               6.4%        4.6%
Used Work E-Mail               7,984               4.2%        8.4%
Purchased Wallpaper or
 Screensaver                   6,609               3.5%      (-1.8%)
Downloaded Mobile Game         4,840               2.5%        8.5%

Source: M:Metrics, Inc., Copyright © 2006. Survey of U.S. mobile
subscribers. Data based on three-month moving average for period ending
31 May, 2006, n= 33,952
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.

Authorized Uses

Members of the press may cite research data or a portion of text provided that each is sourced to M:Metrics, for example, "Source: M:Metrics, Inc." or "According to M:Metrics... " Copies of graphs, data tables or slides must include the following copyright notice affixed to all material: "Copyright © 2006, M:Metrics, Inc."

Contact Information