M:Metrics: Increasing Cameraphone Ownership Forces a New Focus for Graphics Publishers

17 april 2007 Graphics Purchasers Decline as Cameraphones Account for the Majority of Devices in the United States and Western Europe SEATTLE, WA and LONDON -- (MARKET WIRE) -- April 17, 2007 -- M:Metrics, the mobile market authority, today announced a milestone in mobile industry, as the number of cameraphone owners climbed to 106 million in the United States, crossing the 50 percent threshold. Cameraphones are even more ubiquitous in European markets, led by the United Kingdom where three out of every four mobile subscribers own a camera phone. The measurement firm reports that the proliferation of this technology is driving a decline of one of the first sources of mobile entertainment revenue: the sale of wallpapers and phone graphics, as increasing numbers of people personalize their phone with photos taken on the device. Cameraphone Penetration and Graphics Purchases: February 2007 % subscribers who saved % Subscribers cameraphone Who Purchased photo as Screensaver or screensaver/ Country Penetration Wallpaper wallpaper US 51% 3.3 16.7 UK 75% 2.0 28.3 Germany 70% 2.0 20.4 France 63% 2.1 26.6 Spain 74% 2.6 31.2 Italy 69% 2.9 31.7 Source: M:Metrics, Inc., Copyright © 2007. Survey of mobile subscribers. Data based on three-month moving average for period ending 28 February 2007, n= 102,267 mobile subscribers in France, Germany, Italy, Spain, the UK and US. "While a cameraphone in the pocket of most mobile phone owners may have picked the proverbial pockets of graphics publishers, the penetration of this technology has a positive impact on operator data revenues overall as consumers increasingly purchase photo messaging bundles," said Mark Donovan, senior vice president and senior analyst, M:Metrics. Despite a slackening of demand for graphics, Donovan notes that such content is used to good effect by purveyors of off-portal content to entice subscribers to sign up for subscriptions. "Graphics remain a preferred type of content because of the more attractive terms typically associated with licensing of branded graphical content compared with the revenue splits that music labels and publishers expect from ringtones. However, graphics publishers have to work a lot harder and offer compelling, branded content to generate consumer interest." Photo messaging has consistently been among the most popular mobile applications across geographies that M:Metrics measures, with as many as 31.3 percent of mobile subscribers sending photos or videos to other phones, e-mail addresses or posting to blogs. Used network services for photos/videos August 2006 February 2007 Country Subscribers Percent Subscribers Percent France 8,796,960 20.5 9,432,842 21.2 Germany 9,238,968 20.5 9,590,281 20.8 Italy 13,156,342 31.3 13,779,059 31.3 Spain 8,671,452 28.4 9,316,644 29.1 UK 13,363,233 30.7 13,187,929 29.6 US 28,218,336 14.5 30,692,545 14.8 Source: M:Metrics, Inc., Copyright © 2007. Survey of mobile subscribers. Data based on three-month moving average for period ending 31 August, 2006, n= 12,458 French, 15,078 German, 11,909 Italian, 12,228 Spanish, 15,051 UK and 35,016 US and the period ending 28 February "As the technological abilities and habits of mobile users evolve with the capabilities of the devices they own, new mobile content business opportunities are both created and destroyed," observed Donovan. "As we reported, the proliferation of musicphones is also expanding rapidly, so a natural question is how the music industry will respond as these connected creators potentially take a bite out of the ringtone market." M:Metrics applies trusted media measurement methodologies to assess the audience for mobile content and applications. As the world's most authoritative mobile market measurement firm, M:Metrics delivers the most accurate mobile market metrics through the world's largest monthly survey of mobile subscribers as well as automated data collection methodologies. Below are the findings of its February Benchmark Survey. French Mobile Subscriber Monthly Consumption of Content and Applications M:Metrics Benchmark Survey: February 2007 Subscribers Percent Activity (1000s) Percent Change Sent Text Message 32,811 73.7% 2.5% Used Photo Messaging 9,433 21.2% 0.8% Browsed News and Information 3,308 7.4% 1.9% Used Personal E-Mail 2,851 6.4% 3.8% Purchased Ringtone 2,297 5.2% -0.1% Used Mobile Instant Messenger 1,431 3.2% 1.2% Used Work E-Mail 1,086 2.4% 8.9% Purchased Wallpaper or Screensaver 932 2.1% -4.7% Downloaded Mobile Game 630 1.4% -1.6% Source: M:Metrics, Inc., Copyright © 2006. Survey of French mobile subscribers. Data based on three-month moving average for period ending 28 February, 2007, n= 12,847 German Mobile Subscriber Monthly Consumption of Content and Applications M:Metrics Benchmark Survey: February 2007 Subscribers Percent Activity (1000s) Percent Change Sent Text Message 37,541 81.6% 1.6% Used Photo Messaging 9,590 20.8% 5.2% Used Personal E-Mail 2,633 5.7% 1.5% Purchased Ringtone 2,311 5.0% 6.1% Browsed News and Information 1,531 3.3% 3.0% Used Mobile Instant Messenger 1,488 3.2% 3.5% Used Work E-Mail 1,349 2.9% 4.0% Downloaded Mobile Game 1,277 2.8% 6.5% Purchased Wallpaper or Screensaver 922 2.0% -0.3% Source: M:Metrics, Inc., Copyright © 2006. Survey of German mobile subscribers. Data based on three-month moving average for period ending 28 February, 2007, n= 15,834 Italian Mobile Subscriber Monthly Consumption of Content and Applications M:Metrics Benchmark Survey: February 2007 Subscribers Percent Activity (1000s) Percent Change Sent Text Message 37,326 84.8% -0.2% Used Photo Messaging 13,779 31.3% -1.9% Used Personal E-Mail 3,777 8.6% -5.3% Used Mobile Instant Messenger 2,550 5.8% -3.6% Browsed News and Information 2,536 5.8% -11.7% Purchased Ringtone 2,227 5.1% -5.6% Used Work E-Mail 2,006 4.6% -1.5% Downloaded Mobile Game 1,468 3.3% -6.7% Purchased Wallpaper or Screensaver 1,283 2.9% -1.5% Source: M:Metrics, Inc., Copyright © 2006. Survey of Italian mobile subscribers. Data based on three-month moving average for period ending 28 February, 2007, n= 12,864 Spanish Mobile Subscriber Monthly Consumption of Content and Applications M:Metrics Benchmark Survey: February 2007 Subscribers Percent Activity (1000s) Percent Change Sent Text Message 27,302 85.3% 2.2% Used Photo Messaging 9,317 29.1% 5.6% Used Personal E-Mail 2,686 8.4% 1.9% Used Mobile Instant Messenger 2,176 6.8% 1.2% Purchased Ringtone 2,158 6.7% -3.5% Browsed News and Information 1,825 5.7% -3.1% Downloaded Mobile Game 1,777 5.6% -0.8% Used Work E-Mail 1,616 5.1% 0.1% Purchased Wallpaper or Screensaver 837 2.6% -0.1% Source: M:Metrics, Inc., Copyright © 2006. Survey of Spanish mobile subscribers. Data based on three-month moving average for period ending 28 February, 2007, n= 13,354 U.K. Mobile Subscriber Monthly Consumption of Content and Applications M:Metrics Benchmark Survey: February 2007 Subscribers Percent Activity (1000s) Percent Change Sent Text Message 38,080 85.6% 0.3% Used Photo Messaging 13,188 29.6% -1.4% Browsed News and Information 6,092 13.7% -4.0% Used Personal E-Mail 3,136 7.0% -1.7% Downloaded Mobile Game 2,252 5.1% -6.6% Purchased Ringtone 1,949 4.4% -5.7% Used Mobile Instant Messenger 1,854 4.2% -0.6% Used Work E-Mail 1,571 3.5% -6.0% Purchased Wallpaper or Screensaver 895 2.0% -1.1% Source: M:Metrics, Inc., Copyright © 2006. Survey of U.K. mobile subscribers. Data based on three-month moving average for period ending 28 February, 2007, n= 15,536 U.S. Mobile Subscriber Monthly Consumption of Content and Applications M:Metrics Benchmark Survey: February 2007 Subscribers Percent Activity (1000s) Percent Change Sent Text Message 81,184 39.2% 3.7% Used Photo Messaging 30,693 14.8% 4.3% Browsed News and Information 20,480 9.9% -0.5% Purchased Ringtone 19,999 9.7% -0.1% Used Personal E-Mail 17,343 8.4% 2.4% Used Mobile Instant Messenger 13,797 6.7% 9.1% Used Work E-Mail 10,187 4.9% 0.0% Purchased Wallpaper or Screensaver 6,839 3.3% -0.9% Downloaded Mobile Game 6,752 3.3% -7.4% Source: M:Metrics, Inc., Copyright © 2006. Survey of U.S. mobile subscribers. Data based on three-month moving average for period ending 28 February, 2007, n= 31,832 About M:Metrics M:Metrics is the mobile market measurement authority. As the only research firm to measure the audience for mobile media, M:Metrics provides the most accurate metrics on actual mobile content consumption by applying trusted media measurement methodologies to the mobile market. M:Metrics' monthly syndicated data service gives clients the critical insights and intelligence required to inform smart business strategies and the competitive benchmarks needed to evaluate the performance of competitors and partners. M:Metrics is a private, venture-funded corporation headquartered in Seattle, with offices in San Francisco and London. About M:Metrics Data Based on continually refreshed samples of nationally representative mobile phone consumers, M:Metrics reports summarise market size, device reach, and key demographic and mobile phone usage characteristics. The data presented here is drawn from an extensive survey questionnaire that collects specific device model and carrier subscription information from each month's sample of mobile phone subscribers, and also drills down into specific details related to current and past usage of various mobile phone applications and content. Data collected from each sample are statistically balanced and projected to the total national population of mobile phone subscribers. Authorized Uses Members of the press may cite research data or a portion of text provided that each is sourced to M:Metrics, for example, "Source: M:Metrics, Inc." or "According to M:Metrics, . . .". Copies of graphs, data tables or slides must include the following copyright notice affixed to all material: "Copyright © 2007, M:Metrics, Inc." Contact: UK Richard Fogg CompanyCare Communications Tel . +44 (0)118 939 5900 Email richard@companycare.com US Jaimee Minney M:Metrics +1 206.757.1360 (office) jminney@mmetrics.com