Mobile browsing getting out of control?

1

November

2012

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For the first time the browsing share of mobile devices has exceeded 10% of all browsing. At the same time the browsing share of desktops dropped. A year ago, the total worldwide browsing by mobile decices was just 5%. People are getting more and more used to the use of internet by mobile devices but also the devices are getting more and more user friendly.

This sounds like heaven for everyone but the telecom operators are complaining about the extra usage of mobile internet. Their investment was not built for this kind of demand and they claim that their revenues are declining because people tend to use free services like whatsapp and Skype.

Operaters in The Netherlands tried to get more money by accusing Google and Facebook of the declining revenues. The operators wanted to charge these companies and customers money for their services but the Dutch government made this impossible by putting netneutrality into the law.

At the moment, the browsing share of mobile devices is growing exponentially. My point of view is that the operators should think about a new way of making money. But there is also space for new companies like Google and Facebook to come up with a new way of communication and a revenue model to make this a sustainable service.

Sources: http://www.geenstijl.nl/mt/archieven/2012/10/bellen_kost_postbedrijven_3521.html
http://www.nu.nl/internet/2948012/telefoons-en-tablets-goed-10-procent-browserverkeer.html

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Mobile shopping on rocket fuel?

24

October

2012

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More and more people are using their mobile devices to buy on-line in The Netherlands. Thuiswinkel.org, the Dutch branch association for businesses that sell products and services to consumers via the internet, made this announcement today on nu.nl. More than one and a half million people in The Netherlands have bought something on the internet in the first half year of 2012 by using their mobile devices. Compared to last year, the figure doubled.

A large part of these purchases, more than 40% consists of software like apps for mobile devices. Thuiswinkel.org thinks that mobile purchases will increase because more and more people are prepared to buy tablets, smartphones and apps for their devices. But also clothes, books and other stuff are purchased more through mobile devices in the first half year of 2012, compared to last year.

Sources:
http://www.nu.nl/internet/2941141/anderhalf-miljoen-nederlanders-shoppen-mobiel.html
http://www.thuiswinkel.org/leden

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Will Spotify go bankrupt?

11

October

2012

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Spotify is a music streaming service that allows users to play and share songs and customized playlists. Spotify was founded in 2006 by Daniël Ek and Martin Lorentzon in Stockholm.

Spotify’s revenue comes mostly from paying users but also from advertising. Users must pay €5 or €10 euro’s per month for unlimited acces to ad free music. Users are also allowed to listen a certain amount of music for free but in the free model, Spotify plays advertisements between the songs.
Despite their phenomenal growth, Spotify announced a big loss. The announcement of their loss revived the debate about Spotify’s business model. At first glance Spotify should be doing great, they have millions of paying users and after the intergration with Facebook the revenues increased even more. The problem of Spotify is that they have to pay licencing fees to the music industry. These ‘cost of sales’ are increasing simultaniously with the increasing userbase. At the end of the day Spotify should rise prices or improve their businessmodel in order to make a sustainable profit.
Will Spotify go bankrupt? I don’t think so. Spotify is the answer for the losses that recordlabels suffer because people simply don’t buy records anymore. The biggest recordlabels are trying to find a solution for their losses. One of the solutions is selling songs on the internet.
Just a few days ago the French music streaming start-up Deezer announced a €100 million investment lead by Time Warner. This deal shows the interest of the recordlabels in such services but it also shows the revival of an entire industry.

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Bog post social commerce [Homework assignment]

14

September

2012

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Hi there!

Tomorrow I’m going to share some ideas about social commerce and businesses that built around social media. One of my examples is Airbnb.com. This is an on-line service where you can rent out your apartment to guests from all around the world. On the other hand it’s possible to book an apartment abroad instead of staying in a hotel. Airbnb.com uses recommendations and referrals from guests and hosts to rank guests and hosts. With those recommendations hosts can accept or reject a guest or a guest can make his or her decision by looking into the profile of the host. People put trust in this comments and the recommendations, even though they don’t know each other.

This is a revolutionary way of finding a suitable place to stay while travelling. Real people give each other information about the place they’ve spent time in. Instead of checking in into a hotel, now it’s possible to get to know locals, and experience the place like the locals are doing. This kind of connecting people in order to find a place to stay has disrupted the hotel business in a lot of major cities around the world. And it’s getting bigger!

Another topic that I’d like to discuss is the future of social commerce. The gap between on-line shopping and physical shopping is getting smaller. The experience of on-line shopping is changing because of technological progress and people want to have the physical interaction combined with the digital comfort. Big retailers are already testing ways to combine a physical shopping experience with a digital touch and vice versa. There are a lot of techniques that retailers can use in order to create an optimal shopping experience but I think that a lot of the retailers especially in The Netherlands, are not using the social media properly. Should retailers be more aware of the opportunities in e-commerce combined with social media?

Mustapha

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