Case Study: Sony Ericsson ‘PlayNow plus’
Objective:
Sony Ericsson partnered with Omnifone to provide handset users globally with unlimited access to music on their mobiles and PCs in a service which ‘feels like free’ to the consumer. Sony Ericsson avoided the time and resource costs involved in developing and licensing a sophisticated multi-platform music service from scratch by partnering with Omnifone to provide the service globally.
Service Overview:
PlayNow plus is a pre-licensed unlimited music service powered by Omnifone which is fully integrated into Sony Ericsson handsets to deiver an out of the box unlimited music experience for consumers.
The pre-licensed subscription gives users on-demand music access (search and play) across Sony Ericsson mobile and PC, including up to 1,000 pre-installed tracks on the handset and further capacity to store up to 10,000 tracks. It allows dual download to PC and mobile and the ability to keep up to 300 of your favourite tracks in DRM free MP3 format for use on any device at the end of your subscription period. As a pre-licensed service, the cost of the subscription is bundled into the cost of the device or the price plan it comes with. Music access becomes a benefit of purchasing a handset rather than something of additional cost to the user.
Evidence of Success:
From 2008 Omnifone developed, licensed and rolled out PlayNow plus for Sony Ericsson on 10 mobile networks, on 14 different handset models and PCs in 9 countries across Europe, Asia and South America. MNO partners running PlayNow plus services comprised; Telenor Sweden, Swisscom Switzerland, Singtel Singapore, Orange Austria, T-Mobile The Netherlands, T-Mobile Hungary, Vivo Brazil, Telcel Mexico, T-Mobile Croatia and M1 Singapore.
Analyst view: Screen Digest: “By using an existing subscription service, Sony Ericsson negates the need to renegotiate deals with labels or design a service of its own. Omnifone's MusicStation outnumbered Napster's rental music service subscribers within 7 months of launch. The handset manufacturer is maintaining its safe approach, using a proven successful service rather than developing a service of its own which may not experience the same uptake. Preloading the handset with music is a positive move from Sony Ericsson enabling the user to fully experience the service straight out of the box.
Service: PlayNow plus
Provision: White label
Technology: MusicStation Platform, MusicStation PC client, bespoke J2ME mobile client,
Overview: Provided on mobile and PC to 10 mobile network operator partners in nine countries:
Singtel Singapore, M1 Singapore, Orange Austria, T-mobile The Netherlands, T-mobile Hungary, T-mobile Croatia, Vivo Brazil, Telcel Mexico, Telenor Sweden, Swisscom Switzerland
Launch: November 2008
Business model: pre-licensed unlimited subscription/monthly pay as you go unlimited subscription
Free trial: 30 Days for the unlimited subscription
Service: Mobile + PC
Pricing: Dependent on country and mobile network operator
Territories: Austria, Brazil, Croatia, Hungary, Mexico, The Netherlands, Singapore, Sweden, Switzerland
Results: The first pre-licensed unlimited music service that offers unlimited music to Mobile and PC with the ability to keep your favourite tracks in DRM-free MP3 forever.