Satisfying the Mobile User Wants in Music Content. We look at the evolution of mobile phones and digital music and how they converged into one.

1. THE SUPPLY AND DEMAND EQUILIBRIUM –
SATISFYING THE MOBILE USER WANTS IN
MUSIC CONTENT
Oye AKIDEINDE
May 19, 2015
@oyeakd
#DECAfrica2015

2. I did not choose this
JAMB Question TOPIC
we are about to talk about.
• Some Content, Images & video clips for this
presentation were copied from the web. No copyright
infringement was intended.
Oye AKIDEINDE | @oyeakd | #DECAfrica2015 2
DISCLAIMER

3. BRIEF INTRODUCTIONS
3

4. WHO AM I?
OYE AKIDEINDE
• aka the Music Man aka Oye
A.K.D.
• Co-founder, 360nobs.com &
360Delivery
• GM, Digital Music, TECNO
Mobile
• Collects Music, Movies &
Comics
• Diehard ManUtd & Dodo Lover
• http://ng.linkedin.com/in/
oyeakideinde
Nigeria’s Top 50 Songs (1960-2010)
– The Complete Music Countdown
http://www.360nobs.com/2010/10/nigerias-
top-50-songs1960-2010-the-complete-music-
countdown/
Oye AKIDEINDE | @oyeakd |
#DECAfrica2015
4

5. ABOUT
• 360NoBS = Everything No BS
• 360Nobs.com is an online all round entertainment & lifestyle
website with all the latest news & information.
• Voted As Nigeria’s Best Collaborative & Entertainment
Blog
– http://nigerianblogawards.com/2013-nigerian-blog-awards-winners/
– http://nigerianblogawards.com/details/the-winners-2011-nigerian-blog-
awards/
• Does over 4million authorized promotional mp3
downloads monthly via its mobile version of the website
• The 360nobs.com Music Charts are the longest running
online Charts in Nigeria using authentic and actual data
provided by users when downloading Nigerian songs &
viewing videos.
Oye AKIDEINDE | @oyeakd | #DECAfrica2015 5

6. ABOUT TECNO OOMPLAYER
Oye AKIDEINDE | @oyeakd | #DECAfrica2015 6
It’s time to find your favourite
music easily on your phone

7. ABOUT TECNO OOMPLAYER
Oye AKIDEINDE | @oyeakd | #DECAfrica2015 7
To build the
largest digital
music platform
in Africa with a
focus on
African music!
To build the
most
sustainable
digital music
ecosystem for
African artists.

8. THE MOBILE PHONE MEETS MUSIC
EVOLUTION – HOW WE GOT HERE
8Oye AKIDEINDE | @oyeakd | #DECAfrica2015

9. WHAT WAS THE FIRST
MOBILE PHONE?
Oye AKIDEINDE | @oyeakd | #DECAfrica2015 9

10. THE FIRST MOBILE PHONE
1973: With a prototype of the
DynaTAC (DYNamic Adaptive Total
Area Coverage) portable phone,
former Motorola Vice President
Martin Cooper made the first
private, practical mobile phone call
in a non-vehicle setting.
• Who did he call? His rival at Bell
Labs, Joel S. Engel.
1983: 10 years later after the
prototype, Motorola's DynaTAC
cellular phone was commercially
made available to the public, weighing
under 2 pounds, but costing about
$4,500.00
Oye AKIDEINDE | @oyeakd | #DECAfrica2015 10

11. WHAT WAS THE FIRST
PORTABLE MUSIC
PLAYER?
Oye AKIDEINDE | @oyeakd | #DECAfrica2015 11
HINT: Seen in X-Men: Days of Future Past with Quicksilver

12. Oye AKIDEINDE | @oyeakd | #DECAfrica2015 12

13. THE FIRST PORTABLE PERSONAL
MUSIC PLAYER
1972: The Stereobelt was the first
portable personal stereo audio
cassette player.
• It was invented by the German-
Brazilian Andreas Pavel.
• The Stereobelt was the ancestor
of the Walkman and modern-day
iPod.
Oye AKIDEINDE | @oyeakd | #DECAfrica2015 13

14. THE FIRST COMMERCIALLY AVAILABLE
PORTABLE PERSONAL MUSIC PLAYER
1979: Sony released the Walkman - portable audio cassette players
• The Walkman introduced a change in music listening habits by
allowing people to carry music with them and listen to music
through lightweight headphones.
Oye AKIDEINDE | @oyeakd | #DECAfrica2015 14

15. THE FIRST COMMERCIALLY AVAILABLE
PORTABLE DIGITAL MUSIC PLAYER
1983: Sony partnered with Philips to create the D-50 which became
commonly known as the Discman.
It played compact discs and was the first portable digital music
player.
Oye AKIDEINDE | @oyeakd | #DECAfrica2015 15

16. TECHNICALLY, THE FIRST
COMMERCIALLY SMARTPHONE
1993: Perhaps the world's first smartphone, IBM Simon was a mobile
phone, pager, fax machine and PDA, all rolled into one. It included a
calendar, address book, clock, calculator, notepad, email, gamers
and a touchscreen with QWERTY keyboard. It was sold for $899
Oye AKIDEINDE | @oyeakd | #DECAfrica2015 16

17. THE FIRST MOBILE PHONE WITH AN IDENTIFIABLE
RINGTONE OTHER THAN “RING RING”
1994: Nokia 2100 – 1st phone with the
“Nokia tune”
• There are a number of happy
accidents of history in the mobile
phone story in terms of successes
that nobody foresaw.
• One of those happy accidents was
the mobile ring tone bonanza.
• Without doubt its foundation was
laid by Nokia with their introduction
of the Nokia tune.
• It was the first identifiable musical
ring tone on a mobile phone and in
this regard the Nokia 2100 was
game-changing mobile phone for
the industry and consumers.
Oye AKIDEINDE | @oyeakd | #DECAfrica2015 17
1996: The first commercial mobile
phone with customizable ring
tones was the Japanese NTT
DoCoMo Digital Mova N103
Hyper by NEC. It had a few preset
songs in MIDI format
The Digital Minimo D319 by
Denso was the first mobile phone
where a user could input an
original melody, rather than the
preset songs.

18. MP3 WAS BORN
1995: Karlheinz Brandenburg, who first started his work on finding a
way to transmit music over digital phone lines in 1982 by separating
sounds into 3 layers agreed with Motion Picture Experts Group
(MPEG) to the new format & music file extension - .mp3, after
realizing that this new format could be of great use to the growing
Internet.
• MP3 (MPEG-1 Audio Layer III) became the standard means of
compressing a sound sequence into a very small file, to enable
digital storage and transmission
• It was around this time that Brandenburg was asked a telling
question by an English entrepreneur: “Do you know that this will
destroy the music industry?”
Oye AKIDEINDE | @oyeakd | #DECAfrica2015 18

19. THE FIRST MOBILE RINGTONE SERVICE
1998: The first downloadable mobile
ring tone service was created and
delivered in Finland, when a Finnish
mobile operator Radiolinja started
their service called Harmonium.
• The Harmonium contained both
tools for individuals to create
monophonic ring tones and a
mechanism to deliver them over-
the-air (OTA) via SMS to a mobile
handset.
Oye AKIDEINDE | @oyeakd | #DECAfrica2015 19

20. THE FIRST MP3 PLAYER
• 1998: The MPMan was the
first flash MP3 player to be
released, allowing high quality
digital music recordings.
• D e v e l o p e d b y K o r e a n
company SaeHan Information
Systems, the player featured
32 MB of RAM and held an
average of 32 minutes of
music.
• It ran on a rechargeable NiMH
battery pack and used solid-
state memory.
Oye AKIDEINDE | @oyeakd | #DECAfrica2015 20

21. ONLINE PIRACY: ALL HAIL THE NAPSTER!!!
1999: The inevitable rise of peer-to-peer
music sharing resulted in one of the most
infamous companies of the Internet age
• Although it was only around for 2 years,
the invention of Shawn Fanning, John
Fanning, and Sean Parker shook up the
music world.
• Napster was a simple, free peer-to-peer
(P2P) file-sharing service; it wasn’t the
first, but its focus on MP3 sharing
catapulted it to almost 25 million
verified users in February of 2001.
Oye AKIDEINDE | @oyeakd | #DECAfrica2015 21
• Despite the attack and subsequent quick death of Napster, many
other P2P file-sharing services sprung up – Bearshare, LimeWire,
Kazaa etc. It was not a good time for these services, and many of
them were shut down with similar lawsuits.
• Of course, P2P music sharing still exists today, with BitTorrent being
one of the most popular formats in use — especially because of its
decentralized format, which can’t easily be shut down.

22. THE MP3 ERA IS TRULY BORN
2 0 0 0 : S a m s u n g
launched the SPH-
M100 that brought
together for the first
time the mobile
phone and MP3
player and integrated
storage.
Oye AKIDEINDE | @oyeakd | #DECAfrica2015 22
2001: Apple launched its portable media
players and multi-purpose pocket
computers called the iPod.
Jobs announced it as a Mac-compatible
product with a 5 GB hard drive that put
“1,000 songs in your pocket”.
Prior to this, Apple had launched iTunes
(Macintosh version) about 8 1⁄2 months
earlier.

23. DIGITAL MUSIC DOWNLOADS & STREAMING
2003: Apple released iTunes
4, which included the iTunes
Music Store, Apple’s entry into
the music sales business.
• The ability to purchase a
song or an entire album
with a single click was
obviously very appealing to
users, and has remained so
Oye AKIDEINDE | @oyeakd | #DECAfrica2015 23
2005: Though the title of “1st music
streaming service” isn’t easy to bestow,
Pandora easily takes the “biggest early
music streaming service” label, pioneering
the style of music recommendation
service that would grow to become one of
the biggest trends in modern music.

24. SMART MUSIC PHONES
2005: Believe it or not, the iPhone wasn't the
first cell phone to have Apple's iTunes music
player integrated. It was the Motorola ROKR
E1, but it only could manage 100 songs at a
time—not quite the same as an iPhone.
Oye AKIDEINDE | @oyeakd | #DECAfrica2015 24
2007: In 2007, Steve Jobs introduced the
Apple iPhone, a revolutionary touchscreen
smartphone. It wasn't the first smartphone,
but it was the first to get the user interface
right, eventually adapting 3G technology
(which was already available since 2001).
Apple cannot be credited with bringing the
Internet to the mobile phone – what they
pulled off with stunning brilliance was to
make it a compelling consumer experience.

25. NIGERIA (2006 – 2010): THE RISE OF
ENTERTAINMENT & MUSIC BLOGS
2006: www.notjustok.typepad.com
Oye AKIDEINDE | @oyeakd | #DECAfrica2015 25
2008: www.nigerianhiphop.net
2010: http://www.360nobs.com

26. NIGERIA (2011): MOBILE
INTERNET GETS BETTER
• 360NoBS.com tweaks the
audio wordpress plugin to
maximize download &
compression speeds
• Mobile visits rise to 41%
compared to Desktop
(59%)
Oye AKIDEINDE | @oyeakd | #DECAfrica2015 26
Spinlet becomes
Africa’s 1st Music
Streaming &
Download mobile app
for media distribution
to emerging markets

27. TODAY: AFRICA’S FIRST TRUE SMART MUSIC PHONE
• The TECNO Boom J7
is an Amazing
Amplified Music
Phone for Audiophiles.
• It comes pre-installed
with TECNO’s music
streaming & download
s e r v i c e – t h e
boomplayer
Oye AKIDEINDE | @oyeakd | #DECAfrica2015 27

28. WHAT DOES A MUSIC CONSUMING
MOBILE USER WANT?
28

29. CONSUMERS’ MUSIC TASTE TIMELINE
Oye AKIDEINDE | @oyeakd | #DECAfrica2015 29
http://research.google.com/bigpicture/music/

30. MP3s are one of the most popular
search items on major search engines
Oye AKIDEINDE | @oyeakd | #DECAfrica2015 30

31. THE GLOBAL DIGITAL MUSIC REVOLUTION

32. NIGERIA MOBILE & SMARTPHONE USE

33. NIGERIA INTERNET USE
The Youth Factor
100,000,000+ Youth
60,000,000+ use Mobile Phones
78% of Internet users between age 19-35
Students are 45% of Internet population

34. Number of internet users in Nigeria from 2013 to 2018 (in millions)
Source: eMarketer; ID 183849
Note: Actual figures: 2013 to 2014
51.8
57.7
63.2
69.1
76.2
84.3
0
10
20
30
40
50
60
70
80
90
2013 2014 2015* 2016* 2017* 2018*
Numberofinternetusersinmillions
THE OPPORTUNITY – NIGERIA
34

35. Markets with the highest year-over-year smartphone subscriber growth rate worldwide in 2014
Source: Kleiner Perkins Caufield & Byers; ID 249462
Note: Worldwide; 2013
45%
41%
39% 39%
36% 36% 36%
34%
31%
30%
28%
27% 27% 27%
24%
0.0%
5.0%
10.0%
15.0%
20.0%
25.0%
30.0%
35.0%
40.0%
45.0%
50.0%
Smartphonesubscriptiongrowthrate
THE OPPORTUNITY – NIGERIA (CONTD.)
35

36. THE MOBILE MUSIC REVOLUTION

37. THE NIGERIA MUSIC MARKET
N150 – N1,500 = 1 album sale
N15 = 1 approximate cost of 1 song
N100 = 100 USB songs

38. THE NIGERIA MUSIC MARKET

39. MOBILE CONSUMERS WANT TO
CONSUME MUSIC ON THEIR PHONES
Oye AKIDEINDE | @oyeakd | #DECAfrica2015 39
1.39
11.63
20.73
39.99
72.29
125.05
150.26
169.22
51.63
54.83 54.13
50.31
42.62
35.17
26.38
14.38
0.
20.
40.
60.
80.
100.
120.
140.
160.
180.
2007 2008 2009 2010 2011 2012 2013 2014
iPHONE
iPOD
Global Apple iPhone sales in the fiscal years 2007 to 2014 (in million units)

40. THE EQUILIBRIUM
• Is the market competitive? YES
• Do Mobile consumers want music for
FREE? Not really.
• Is the UNIT Price fair for Consumers?
YES
Oye AKIDEINDE | @oyeakd | #DECAfrica2015 40

41. EQUILIBRIUM? – NEW MUSIC
Oye AKIDEINDE | @oyeakd | #DECAfrica2015 41
DEMAND SUPPLY

42. EQUILIBRIUM? – ALL MUSIC
Oye AKIDEINDE | @oyeakd | #DECAfrica2015 42
DEMAND SUPPLY

43. TO INFINITY & BEYOND
Oye AKIDEINDE | @oyeakd | #DECAfrica2015 43

44. THE FUTURE
So if streaming loses the crown as the most
widely used form of music listening, what will
take its place?
• We can assume that music technology could
advance so drastically within the next five or ten
years that we wouldn’t even be listening to artists
anymore.
• We might plug ourselves into virtual machines
that would take our tastes and procedurally
generate new music that would perfectly fit what
we like in our music libraries, much like video
games are using procedural generation
Oye AKIDEINDE | @oyeakd | #DECAfrica2015 44

45. CONCLUSION
• The history of music consumption is a long one, and spans
almost 150 years. The history of music, and music
performance, is a lot longer, with some philosophers
believing that music is one of the the defining characteristics
that makes humans different from lower-order animals.
• Music has played a role in how we celebrate, worship,
communicate, design, and build for centuries, and it will likely
remain one of the powerful tools in the human cognitive
vocabulary. Music is a powerful thing, and the way in which
we relate to it has changed as we have evolved and become
more advanced as a species.
• We’ll continue to innovate, challenge, and completely
change the ways in which we consume it.
Oye AKIDEINDE | @oyeakd | #DECAfrica2015 45

46. QUESTIONS?
Oye AKIDEINDE | @oyeakd | #DECAfrica2015 46