Video calling didnt replace the regular phonecall. So how can the video ringtone supplant its audio cousin? Vringo thinks it knows. We spoke to CEO Jon Medved...
The ringtone is the foundation of the business you work in, the magazine you hold in your hands. It was the ringtone that made consumers realise their phones could do more than just communicate, and this revelation acted as a launchpad for all the advanced content products we see today.
They still sell. But most of the growth is coming from emerging markets, and it’s accepted that subscription fatigue and the ability to self-configure ringtones from MP3s is causing a long term decline in mature territories.
So what’s next? Logically, you’d think, it has to be video ringtones. Well, it’s not that simple. People don’t make video calls. But there’s something in the basic idea, which is where Vringo comes in.
It’s developed a new kind of video ringtone that combines messaging and community with entertainment…
The video ringback is hampered by the fact that people don’t make video calls. How does Vringo get round this?
There’s no video call required. Videos are activated by the Vringo software that people can download for free. Then, they can sign up to particular channels, and when they get a call our servers push out a video clip to them. But there’s also a community element because they can push their own choices to friends who are also members.
Has anyone missed a call while watching a video?
It can happen at first when people are getting used to the service, but the clips are always downloaded in full, so they can be watched later.
Does Vringo work on all devices?
At first it was just on native operating systems, but Nokia and Sony Ericsson have now bought into the concept so Vringo works on nearly all of their devices. We’re working on the rest.
Why are you so sure that Vringo will catch on?
Handsets have got 5 megapixel cameras and video, and we’re all playing these simple audio tracks? Stand next to someone whose phone is blazing with light and colour when they get a call, and watch the reaction. It’s very viral. And we find that when people sign up, they change their tones a lot. Clearly the success of the service depends on getting a critical mass of customers.
In terms of numbers, how are you doing so far?
We’re into six figures, and expect to start getting to that critical mass point in 2009.
What’s the strategy for customer acquisition?
We’re making partnerships with operators and portals. The most recent ones were with Turkish carrier Avea and Bouygues Telecom, and there are a dozen more to come. We’re also on the Nokia Download and Sony Ericsson Fun and Downloads. Last year we launched an app that let users sync Facebook pics of their friends to their address book. We used that as a promotion for the service.
How much content is currently available?
We’ve got 3,000 clips across different genres, like funky animations, music, extreme sports and so on. The content comes from partners like Mobstar Media, Cartoon Network, Adult Swim and others. Members can also make their own user generated content in as little as 15 seconds.
Does this lead to copyright infringement?
To be honest it can lead to infringement but we take copyright very seriously, and monitor the service constantly to put a stop to it.
So what strategies do you have to monetise Vringo?
Various models. Some operators charge a subscription and we get a share. We can also offer a free basic service with the option to buy premium content. That’s something we hope to introduce in Q1.
Later on, we’ll look at ad-funded services. There are lots of obvious ideas there, such as sponsorship of channels and so on. It’s unlikely to happen this year, but we’ll be looking at these options for 2010.
Advertisement
