Research in Motion Ltd.’s push into the consumer space with video-friendly BlackBerry devices is set to get a boost from QuickPlay Media, which recently unveiled its mobile media package for BlackBerry that is slated to begin showing up on users’ handsets.
Initially the offering will be an on-demand, a la carte pricing model with a range of $1.50 to $3.50 per video, but QuickPlay Media plans to eventually add a subscription model.
Sony BMG Music Entertainment Inc., Warner Bros. Records, Rounder Records and Universal Music Group have signed on to provide music videos for the services, which will typically be at the $3.50 price point. The service will also include sports, comedy and other entertainment choices. All of the downloadable clips will be DRM-protected.
“We think the music category is going to be the biggest category,” Chief Creativity Officer and Co-Founder Raja Khanna said. “Our decision to go with an a la carte billing model really precludes us from going with news, weather and that kind of stuff . as we introduce the subscription service those things will start to appear.”
Waiting for 3G
As RIM begins introducing 3G devices, Khanna says QuickPlay will be in the wings, ready to launch a subscription-based service.
“Our experience tells us that subscription plays a lot better with streaming rather than downloads, with video specifically,” he said. “As more and more BlackBerry users are on 3G networks . we will definitely introduce a subscription service.”
Khanna said mobile video adoption rates are very much in line with the availability of 3G services and capable devices. “Generally speaking, our entire business is linked to 3G and beyond,” he said.
Khanna calls the service a turnkey solution that does not require application downloads or additional steps to get up and running-the billing will also be handled directly by the users’ carrier or they can pay directly to QuickPlay.
“It just works, you don’t need anything special,” he said. “Our whole business is built on this concept of five minutes of fun.”
As the service grows so too will its ability to provide users with customized recommendations based on their previous usage habits. “It reduces the pain and the time to get to relevant content,” Khanna said. “It’s a very personal space, a personal experience, so the content should be personalized.”
Although the deal with RIM is somewhat unique to the content space, he says that will eventually fade.
“There’s actually a lot of pressure, especially in the smartphone market, for manufacturers to start introducing services,” he said.
U.S. carrier deal this summer
QuickPlay has already deployed 14 audio and/or video services on nine carriers and plans to announce a partnership with a major U.S. carrier this summer-a first for the three-year-old company.
“Our foray into the United States is being initially led by RIM,” he said. “This is our first video launch with them.”
The company currently manages and delivers content from more than 120 mobile content providers and delivers 20,000 video clips a week, he said.
“We want to be the plumbing underneath all the video and audio services and have open connection points for all the third-party content providers,” Khanna said.
