Taking the Show On the Road - Nokia Market Study Shows That 3G Mobile Users Want to be Entertained On the Move

December 14, 2001

Study confirms 3G operators will find a ready market for fun, stimulating mobile entertainment services.

A new study undertaken by the HPI Research Group on behalf of Nokia has highlighted the potential for the mobile entertainment services in 3G.

The study demonstrated that the core mobile-phone market (16 - 45 year olds) was excited by the pace of technological changes, which they expected would make life more fun and stimulating.

For the study, HPI interviewed over 3300 people in eleven key global markets across three continents during June 2001. Those interviewed consisted of the core target market for the 3G offering, namely, teenagers, young adults and family adults, all of whom currently have mobile phones for personal use. The markets were Brazil, Denmark, Germany, Italy, Japan, Korea, Singapore, Spain, Sweden, United Kingdom, and United States.

Entertainment services

Study participants were asked both about 3G handsets and about which 3G features and services they would be interested in. In all, consumers were presented with over thirty prospective features and questioned regarding their interest in and rank of the features.

Consumers stated that they would want, on average, fourteen features, clearly suggesting that the 3G handset will be seen as multifunctional. Easily the most popular feature with 81 percent was SMS texting, probably as this is already available to the consumer, and thus more tangible. Following this, texting, audio/visual and information services were particularly prominent.

When categorised into three separate 3G service areas of Messaging/Photo, Entertainment, and Information, it was clear that the 3G handset was also seen as an entertainment device.

In particular, 72 percent of respondents stated they would like to have at least one entertainment service available on their 3G terminal. Among the younger respondents, enthusiasm was even greater, with nine out of ten `definitely' wanting at least one of the entertainment features.

The "top five" entertainment services attractive to respondents were:

- Listening to radio

- Requesting single songs

- Requesting albums

- Watching live TV

- Playing games - alone and interactively

The respondents do not see the handset as a direct replacement for other electronic devices, but rather as a multifunctional device that can be used for entertainment when they don't have access to a TV, video, or game machine. For example, three-quarters of consumers indicated they would use the 3G features when traveling or outside the home.

In terms of how the consumer would like to pay for the many features and services available to them, a very clear pattern emerged across all markets. Around 70 percent of consumers would like to pay as a bundle, as opposed to on a more individual-service basis.

Handset enthusiasm

Respondents were shown a video of how 3G mobiles might be used in the future, as well as photos of how a 3G handset might look. Following this, over ninety percent of this core market stated that they were excited about the developments in mobile telephony, with over half expressing they "were very excited".

Obviously, the real test of consumers' enthusiasm is the intent to purchase the device/service. The handset was presented to the respondent as affordable in order to maintain interest throughout the interview. The results were extremely positive, with nearly six out of ten stating that they would definitely want a 3G handset. In fact, just four percent of the core market stated that they would not be interested in purchasing one. The American and Asian markets were most enthusiastic, with Germany, Spain and the UK slightly less enthused.

Of the core market group of 16 - 45 year olds, 43% express not only a strong, personal commitment to 3G, but are also willing to pay more for the service.


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