In my last post I touched very briefly on the Games and Movie industry and where the D2C opportunities are heading. These are inevitable – however there are more pressing issues at stake just now and the as 2009 is THE year of the emerging mobile (we all knew it had potential but here it is at last it starts to come of age and will be very dominant for the next 3 years) device and of course those apps that are either very useful and handy to have or – if you like the Zippo brand you can have a pretend lighter that no matter how hard I try I can never get my cigarette lit!

So this week those covermounts that were of course according to some “the saviour of the music industry” we were told were no longer going to be part of the Mails make up any more “senior executives at the newspaper believe the use of covermounts is a costly exercise, prompting a significant spike in circulation, but not luring in long-term readers.” So bang goes that idea then…

So what's next? That of course is what everyone is trying to scramble about and try and come up with the “next big” thing! Well i would hope that after all this time we are now at a stage where the old models no longer work and actually you need to have a much more open approach to how you stack up a business model for digital media. You have the potential of a worldwide audience, you have multitude of delivery options to you – stream, download, side load, D2C, B2B… the list goes on and as such there is different models for each of those – and each will have a differing value based on the delivery and consumption.

However there really needs to be a take in the ground that does not label, or pigeon hole the end user because they decide to consume the media in whatever format they chose.

With this I have been talking about the big wins in mobile this year and the year of mobile of which we as consumers, and we as strategists and technology futurists have been talking about the power of the converged device and the power that it will yield when it arrives. I had been battling for years earlier saying that it was coming but not yet, I was a naysayer and then at the end of that year, just go back and ask “did mobile revolutionise the world, or did we just send more txt messages?”

So with 2009 in full swing and Apple & Google in full throws of their Apps – what can we learn from them and relate that back to the entertainment industry? Well on the iPhone part of the SDK is that you can not topuch or intefere with the iTunes library – that's Apples and no one is touching it!! Quite right too it is one of the biggest USP of the iPhone – which makes it such a good music player as well as a phone – but another of my favourite applications from Tapulous showed a slightly different approach where – the iPhone comes in 8Gb & 16Gb – (sure that this summer we will see the 32Gb version) so it was then feasible to write an application with content wrapped inside it! You could in effect wrap an album in there and avoid “touching any part of iTunes”…

This got me thinking then – rather than just iPhone what if we could package up a subset of items and start to make an interactive and changeable experience that at the same time gives you the chance to sample and enjoy even more music for example?

So the Music App was conceived – and sure that there are other variations on a theme here – but lets have a look a a couple of examples of how this could work from a users part and then how this can work as a business idea and start to translate what in essence is a template for digital media on portable / mobile devices…

Lets take the brand new U2 Long Player: No Line On The Horizon. U2 delivered various formats of the alum from CD, Box Set, Vinyl, digital & digital deluxe editions. Although that is a very traditional way of delivering such a long awaited album – you noticed that after the single came out there was a scramble for U2 catalogue – as always happens with massive bands – and something that the labels are keen to see in a larger scale, but there's not many U2’s, Metallica’s etc.. left that has that sort of impact.

What then if part of UMGs drive they delivered the U2+ App. This is an app that caters for most new phones and as the album, plus the digital booklet and hell why not throw in a sample of the Corbijn video to tantalise. Then as this is an App – deliver 2 other sample Albums of U2 – say Boy & Best of 80 – 90. Suddenly you have just delivered to the end user a total U2 experience that goes beyond the usual download and play. Now we can start to get somewhat clever with this – the App is the U2+ No Line on The Horizon (the “+” being key here) where you can then update your 2 bonus elements and say swap out Boy for October and listen to a sample of that album. Of course you can directly link off and download the entire album ( that's the up sell or just listen to half the album that is embedded within the application – and there is your security aspect of dropping 3 albums within 1 app) so in essence you have just created a mini U2 radio / sample package that you know – as the user had to download the application and connect to deliver any updates.

The really clever part is that once the user has the application on there – the possibilities to then cross sell and deliver U2 news, tour, merchandise, bonus tracks is simply breath taking – you have a direct relationship with the consumer that you never had before (as previously this was done either with iTunes or retailers..)

Then take this idea one stage further and deliver TV content and start to deliver an episodic subscription delivery where the application will deliver the latest episode 1 at a time – suddenly using a DVD Rental formula where you have a queued list of TV shows that you are keen to watch and have in your queue – as the example above start delivering TV content direct to the device and update the application as the user is finished one episode – and again the great cross sell opportunity is that if they have subscribed to a show like Family Guy – for example – whilst waiting for the next episode to air or become available – give the user a number of additional options to consider. It could be an older episode that they may have missed, a related show such as American Dad either way you have an opportunity to target and deliver a better experience for the end user than ever before.

Not only as the Apps for these new devices saved the mobile industry – in terms of the end user being able to personalise their mobile experience – but may have just delivered another way to enjoy digital media on the go… and although I’m not going to say save the music industry – but at least we can start looking at the huge possibilities that we have available using an app as an initial delivery tool and from there – start thinking about ongoing value to both the user and to the rights owners…

(PS apologies for the crap images – I’m NOT a designer and these were knocked up – quite literally  - to show what could be possible… with a decent designer I bet they’d look even better…)