CENTER STAGE: Sony Ericsson’s Christopher David Speaks Out On Apps, Strategy & GetJar Partnership; Tips To Avoid Being A ‘Me-Too’ App Store PLUS Get Ready For App Economy Report
The Netsize Guide 2010 is breaking download records and an increasing number of “fans” have even purchased a paper copy of this must-read mobile industry resource. In view of the phenomenal popularity of this content, MSG is joining with Netsize to showcase a “best of” selection of executive interviews and hot topics that have everyone talking. We start the series with a timely and telling interview with Christopher David, head of Developer and Partner Engagement, Sony Ericsson. Over the next weeks I’ll expand the focus to include in-depth features and podcasts with the companies and influencers at the forefront of mobile and mobility.
MAKING AN (APP) OFFER YOU CAN’T REFUSE
Despite the well-founded arguments expressed by close friend and colleague Tomi Ahonen (expertly outlined in this must-read post), apps and app stores continue to eclipse all other mobile industry issues and topics. While many players and commentators appear to be caught up in an app store frenzy, few have fully worked out the business basics such as how to ensure app choice through partnership, how to encourage recurring revenues and the best models to ensure app choice and maintain differentiation.
The jury is out on what will separate the winning app stores from the also-rans. But this interview with Christopher David offers some answers and suggests the real key is freshness and focus. As he sees it: “It’s not about providing thousands of apps; it’s about providing consumers access to a couple of hundred relevant apps and keeping it fresh.” To achieve this Sony Ericsson has developed a three-tier approach to apps and forged a partnership with independent, cross-platform app store provider GetJar, a strategy Christopher discusses in detail below.
HOW BIG IS THE GLOBAL MOBILE APPS MARKET REALLY?
That is THE question and GetJar may have some answers. The company is gearing up to release a milestone report this week that sheds light on the size of the market and challenges us to re-think our assumptions about fragmentation, competition and the split between on-portal app stores and non- carrier app stores ( a number that skyrocketed from 8 to 38 in 2009 alone).
Special thanks to GetJar and Jayne Stala over at Komodo PR for inviting me to the pre-launch briefing in London tomorrow, but I won’t be able to attend. Fortunately, Jayne and I have found a solution: she’s scheduled me for an exclusive podcast interview with Patrick Mork, GetJar VP Marketing, to discuss the report and key takeaways. Patrick was instrumental in developing the research project and I look forward to having his insights on MSG on Wednesday (when the report is officially public).
INTERVIEW: CHRISTOPHER DAVID
In 2009 Sony Ericsson took the wraps off a new app store coupled with a progressive framework to accelerate the creation of compelling apps for Sony Ericsson devices. In practice, Sony Ericsson handles all billing and then passes 70 percent of revenues back to developers. Other tangible benefits for developers include access to tools, distribution, marketing and top-notch placement in the app store. While there is a sharp focus on apps written for Java and Symbian, Sony Ericsson also recently expanded support to other platforms such as Android.
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Q: How did the decision to launch an app store originate and how do you avoid a head-on confrontation with competitors?
A: Sony Ericsson has always been centered on bringing quality entertainment and content to consumers. To do that we also created long-term sustainable relationships with developers. This has evolved and, in 2009. we decided to take it all to a new level.
We opened up the marketplace to allow more people within the community to participate and launched submit.sonyericcson.com. When we did this we probably did not do a good enough marketing job. At the same time, others in the industry had made a much bigger push around apps. So, we had to think hard about how we would avoid being a ‘me-too’ app store.
We concluded there were things we had to do to raise the bar. We had to make it simple and easy for developers to get involved. There had to be low barrier of entry for the developers and the application providers with no submission fee, no membership fee, no annual fee and no hidden costs. But we also didn’t want to just open up a floodgate; we wanted to ensure a wide range of quality content.
Q: How do you maintain a balance in the quality and quantity of apps in the store?
A: First, the submission process ensures quality. We have a set of competent policy guidelines and a review process. We don’t only look at whether apps function. We examine if they have the right UX [user experience] and if they make the best use of the screen. We also consider if they really benefit the consumer. We asked ourselves: ‘Does the consumer need 15 Sudoku apps or do they want one relevant Sudoku app.’ We opted for the latter.
It’s not about providing thousands of apps; it’s about providing consumers access to a couple of hundred relevant apps and keeping it fresh. The focus is to have around 100 apps and will not be much more than that. That said, to keep this number of apps fresh for the consumer requires us to turn around a much bigger number than that. I would say it needs to be 10X more and – from that – we pick and chose what gets shown to the consumers.
Q: The idea seems to be to forge closer relationships with fewer developers. Is that what you’re doing here?
A: Absolutely. And this approach is reflected in the categories of apps. We currently classify apps in three categories.
Category One is being a good citizen to a non-fragmented platform. What I mean here is compliancy. Whether it’s for a Java platform or a Symbian platform or a Windows Mobile platform, we are always going to be compliant and make sure we’re not fragmenting the core foundation of our ecosystem. Therefore, any application developer that wants to make use of the core, the API set and the features of that platform will find these applications will run ‘as is’ on our phones, requiring a minimum effort to adapt navigational keys, touch and non-touch, and things like that.
Q: And it’s this category that you provide consumers access to through partnerships such as the agreement you have with GetJar, an independent app store with 50,000+ applications on offer.
A: Yes. We figure why make it even more complicated for the developers? We’re looking at this much more in terms of it being complimentary. So, Category One apps is the focus area of GetJar.
Q: What is your focus as Sony Ericsson?
A: Our focus is on Category Two and Category Three apps. Category Two type apps are apps that could potentially run across the Sony Ericsson portfolio, independent of platform. Put another way, there are apps that would leverage the innovation that Sony Ericsson puts around and on top of the core platform. Examples could be apps that harness the advanced imaging capabilities in our phones, make use of face recognition technique, or utilize the OpenGLES and 2.0 3-D environments that we have in all our phones right now.
Category Three are apps that are much more optimal, much more unique and targeted for a specific Sony Ericsson phone. Here we look for third party applications that could potentially integrate well with that UX [user experience] and further enhance the overall proposition of a phone.
Q: How do you encourage sales, which benefits developers, and discovery, to satisfy consumers?
A: Many developers are starting to re-think. Do they go for big, with the probability of being discovered very low, or do they go for a lower volume with a much higher probability of being discovered. The developer community is split.
Most users won’t look beyond a top ten list when they’re searching for apps. We’re trying to change that by understanding what the consumers are doing. If they’ve seen an app several times and not picked it, then we want to present the consumer with an app that is more interesting, fresher. We’re also trying to understand what’s viral and what consumers are recommending.
Q: What is the impact of app stores on the value chain?
A: I think we’re a the starting point of all the crazy things people will do and it’s not only what the developers will do but what the individual users will do. The value chain in itself I think it is pretty straight forward in terms of the players and what they do.
I believe that, over time, we will see scenarios where anyone can create applications. As that happens, and it’s already happening on the Internet today, the mobile phone will become a place where a lot of us can make what we want. That will push the industry toward building more components and building things in a way that allows people to integrate those components.
Q: What is the role of mobile operators?
A: One development is clear, even if it’s slow: the industry is going toward a much more open approach, much more embracing. It’s all about operators allowing others to participate much more in their ecosystem.
Operators will have an important role to play as a facilitator and this will allow them to play several roles. Can they be a billing provider? Can they be an identity provider? Can they be a channel to content and media? They can do a lot of things, but they also have to open up and allow for more people to participate on equal grounds and equal terms. I would not say may the best man win, but rather the consumer will choose.
DOWNLOAD & APP STORE SURVEY RESULTS
The Netsize Guide – which features exclusive interviews with 28 industry senior executives at leading companies and organizations including Havas, M&S, MMA, Nokia NAVTEQ, PayPal and Sony Music Entertainment — provides unique perspectives and reveals how players across the mobile ecosystem are preparing to meet the challenges and take advantage of the opportunities ahead.
The Netsize Guide 2010 also includes the results of Mobile Trends Survey 2010, an online survey asking +1,000 mobile professionals and practitioners across 67 countries their views on these key themes and their insights into trends that top the industry agenda, including the advance of mobile applications stores, progress towards global mobile commerce and the increasing importance of mobile across a range of business verticals.
Finally, the Netsize Guide 2010 presents detailed data on the wireless telecoms sector in 41 countries, including revenues, market shares and value-added service offerings for messaging and billing of 194 mobile network operators worldwide.
DOWNLOAD YOUR FREE NETSIZE GUIDE HERE.
Disclaimer: Netsize is an MSG supporter. Peggy Anne Salz is author of the Netsize Guide 2010.
Tags: App Economy, app store, GetJar, Mobile Internet, Netsize Guide 2010, Sony Ericsson
March 15th, 2010 at 1:24 pm
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