Google forayed into other search related other sectors like videos, books and has been successful. Gmail has become synonymous to email today. It later entered into OS for mobile handset with the Android and is already ready to become the number one operating system in less than 5 years of its existence.
The company has been making efforts to bring Internet to every corner of the world (via floating balloons) and taking wearable technology to the next level. This year it kickstarted another ambitious project with an aim to rule the Smartphone market.
Here have a look at Google initiatives and the new challenges it is facing from competitors today.
YouTube to go offline in 2014
The popular website was bought by Google in October 2006 and Google chose to maintain it as a separate brand. This video sharing website reached 1 billion unique users every month by March this year. This means one out of every two people who use Internet go for YouTube.
Google has new plans for countries like India that are looked as growing market for telecom products, mobile handsets (even after very low Internet penetration). The company is planning to launch the YouTube Offline services in India as (1) the reach of Internet is low (2) and adoption of Smartphones is high.
This is Google’s second attempt to be a part of online video and audio industry in India. In middle of 2013, Google Music India, a service that allowed people to search for music by names of artists, movies, albums or song titles was shut down in India. This was just a ‘Lab products’, that is testing product. So, our hopes were on the Google Play Music. This service started rolling out services to European countries (the service was rolled out in 20 countries) last year in October, but India was excluded from the list.
Cheap phones and Android One
Google has changed the market of Smartphones once dominated by Apple and Nokia. The free operating system from the company which is yet to complete 5 years of its existence has pushed the prices of handsets to a further low. Companies have been able to offer Android Smartphones as low as Rs 4000 in the market today.
But this caused a challenge for Google as rolling out of OS updates was difficult and the standard of phones that were available at lower price points. “The company has no direct control over key parts of Android, such as device design, manufacturing, marketing, and distribution” points out Quartz. This is where Google decided to play around and launch Android One. These low cost handsets have been launched in India this year.
But at the same time the Google does not seem to be in a mood to snap ties on the Nexus phones and tablets. The company is rumoured to be launching the new Nexus 6 phablet and Nexus 9 tablet this year, as the successor of the Nexus 5 and Nexus 4, but at premium costs that will compete with the premium iPhones and other Android phones.
But they face immense competition from Samsung, Xiaomi, Apple iPhones, Mozilla and other low-cost handset manufacturers like Datawind. Samsung has already announced Tizen based handsets before Diwali this year, while Datawind is also planning ultra-low cost phones this year. Xiaomi is already creating waves and selling like hot cakes in the Indian market. Though iPhone is yet to come to India, it will definitely grab the top position because of its premium brand value. Even Microsoft is also not planning to sit quite, the company recently acquired Nokia Windows handset manufacturer and is planning to go more aggressive in the Indian market.
Now the Motorola has already made a mark in the market and will soon going to the Lenovo shed, there is no reason that Lenovo does not continue the Moto journey onwards. These handsets will also compete with the Android One and Nexus phones.
Free voice calls and the messaging apps factor
Google offered low cost voice calling facility (video calling also) using Gmail email service that uses a simple microphone or a headphone from a computer in 2010. This came as a benefit to those who need not use a phone and spend huge amount of money for making calls.
But after an increasing trend of the adoption of Smartphones the company in 2014 introduced free voice calls support in its Hangouts IM service for Android, iOS and the web. The free calls service is applicable on making calls to numbers in the U.S. and Canada, and mentions that the international rates would be low. In 2014 Lok Sabha Elections this year, this free service played a huge role in connecting the population to their leaders.
But the service today stands challenged by Facebook, other free voice call/video call services over the Internet. Whatsapp, WeChat, Viber, Line with free voice calling, message and image sharing features are quite popular in India. These are challenging Google to find more innovative ways to gain traction.
Google took free cloud stage to a different level with the Google Docs that now have been translated into Google Drive. It’s a new way to create, share, collaborate and keep your files – including videos, photos, Google Docs and PDFs – all in one place and access it anywhere in the world.
Microsoft is now prepping up its OneDrive cloud services and DropBox is also surging ahead as more and more people adopt these services to connect the documents in computer, tablets and mobile phones. OneDrive announced free 30 GB for iPhones, Android and Windows phones. It initially offered 15 GB free storage, which is same as what Google Drive offered.
Tomorrow Satya Naella, new Microsoft CEO is expected to come to India to talk about cloud services and enterprise solutions for India and Indian businesses. The company is focussing on cloud services and mobile this year. This might pose a challenge to Google.
Driverless cars, Google isn’t the only company interested
Google might have started the ambitious project of driverless ‘smart’ cars that could talk to each other and find their ways on road, it isn’t the only company doing this.
Google this year showed off a prototype of the Google car which sported Tata Nano-kind looks. The cars this year received permit to be tested on real roads in California. The rules will come to effect from September 16 and are now for the testing period. There is a need a human with a valid driver’s license to be in the driver’s seat and capable of taking wheel at any moment in the rules. READ another story by me Flying cars in 2017, driverless cars in 2018 : Future is indeed bright
Nokia too is planning to invest a huge amount on intelligent cars. The company has announced a USD 100 million Connected Car fund to be managed by Nokia Growth Partners (NGP). The fund will identify and invest in companies whose innovations will be important for a world of connected and intelligent vehicles.
The Chinese search giant Baidu is planning to make one to answer Google. This won’t be completely a driverless car and the idea does sounds logical. A car without a steering wheels, makes the driver fully depend on the intelligence of the car, Baidu wants to give a chance to the driver, to make use of the human intelligence then depending on the car solely. The company will produce a prototype in 2015.
Land Rover is testing new ‘see-through’ augmented reality view of the terrain ahead in cars and LG gave a glimpse of flexible oled lights for BMW cars. Toshiba too is testing such cars and smart home concepts.
Read the full story here
जब कुछ ही महीने पहले भारत में व्यवसाय शुरू करने वाली चीनी कंपनी जियोमी के फोन बार-बार भारतीय स्टोर से सेकन्डों में ही गायब होने लगे, समझो गूगल के एन्ड्राइड वन के लिए भारतीय स्मार्टफोन बाजार में पैठ पाना आसान न होगा।
बात 13,999 रूपये के जियोमी मी3 की ही नहीं है। 5,999 के रेडमी 1एस ने भी भारतीय स्मार्टफोन बाज़ार में कमाल दिखाया है। जियोमी के फोनों ने बस कुछ ही सेकन्डों में गायब होने में जैसे महारत हासिल कर ली हो।
जहां जियोमी के लिए यह खुशी की बात है वहीं गूगल के लिए यह निराशाजनक खबर हो सकती है।
कैसे? यह देखें – गूगल को साल भर य़ा उससे अधिक इंतजार कराने की आदत है। 2012 में लाँच हुआ नेक्सस 4 2013 में जाकर भारत में आया (कुछ 6 महीने बाद) । 2013 में लाँच नेक्सस 5 ने इतना समय नहीं लिया, परन्तु यह अपने से पहले फोन के मुकाबले महंगा रहा। दोनों ही फोन की बाज़ार में खूब पूछ रही… धूम रही कहना भी ग़लत होगा।
नेक्सस के बाद आए मोटोरोला मोटो जी और एक्स की भी बहुत पूछ रही— पर 2014 की शुरुआत में लाँच किए गए मोटो ई ने बवाल मचा दिया। कुछ ही दिन के भीतर लाखों फोन बिक गए और बाज़ार में 7,000 रूपये से कम दाम के फोन लाँच करने की होड़ ही लग गई। लावा, जोलो, सेलकॉन, नोकिया सभी ने सस्ते फोन बाज़ार में उतारे। परन्तु धमाकेदार सफलता मिली अभी डेढ महीने पहले लाँच हुए जियोमी रेडमी 1एस को।
15 सितम्बर को गूगल ने माइक्रोमैक्स, स्पाइस मोबाइल्स और इन्टेक्स के साथ मिलकर एन्ड्राइड वन लाँच किया। तुरन्त ही इन मोबाइल फोन के बाज़ार में उतार भी दिया, परन्तु इसके रूझान को आंकड़े आने अभी बाकी हैं। माइक्रोमैक्स ने बिक्री के पहले ही दिन 22,000 से अधिक फोन बेचने की बात कही है।
16 सितम्बर को जियोमी रेडमी 1एस के 40,000 फोन बिक्री के लिए आए। यह कंपनी की तीसरी बिक्री थी, जिसमें फिर एक बार 5 सेकन्ड से कम में 40,000 फोन गायब हो गए। एन्ड्राइड वन के भारत में कदम रखने के 24-घटे के भीतर जियोमी ने बता दिया – “बॉस हम भी लड़ाई के मैदान में हैं। हो जाए दो-दो हाथ?”
Phones have gradually developed into devices that symbolize convergence video, music, images and text at one place and find new ways to use and share these, we have new products and services that cater to our growing needs and tastes. Smartphone makers are packing new features in the phones and service providers are getting ready to offer services and platform to cater to our online as well as offline lives.
India is a country with low penetration of Internet and high adaptability to mobile phones and smartphones where the benefits of service providers is still to reach billions who are not on Information highway.
Cheap phones and the NEW ray of hope
Companies including Google, Mozilla and Facebook are planning to reach those who have not benefitted from information revolution. Google’s Android One smartphones and Project Loons, Mozilla’s ultra cheap smartphones, Facebook ‘s drone project and whatsapp – all are efforts to cover the next one billion.
This has raised hopes in the online music and video industry which has been facing problems with reaching people. In such a scenario today, offline services like music and video on smartphones have a huge potential as they can now plan ways to get content to user in offline mode.
Recent efforts towards catering to the offline population looks very promising. According to Ravi Visvesvaraya Sharada Prasad, a well-known telecom expert, offline music and video services have good potential in India. “This is a Rs. 100 crores industry. Bharti Airtel has overtaken traditional music label companies to become the largest music vendor in India. Bharti Airtel’s one video song for one rupee service is very popular, especially Bollywood and devotional songs and videos. With YouTube offline services coming to India, there will be greater choice for the consumer.”
About offline music service apps in India, Prasad mentions that in India about 100 million people are using smartphones, out of which some 20 million are using Internet. “There are 20 million high end users using 3G”, he says “who would not hesitate paying a fixed monthly subscription for music”.
Music and video services on mobile phones
Hungama, Saavn, Gaana and other online music services has a subscription-based system. When the app is installed on your smartphone you can look for any music you like and listen to the tracks for free. But if your need is a track that you can download and save in your phone to listen later, you can buy a monthly subscription. People have slowly starting to subscribe to these services.
According to Siddhartha Roy, CEO of Hungama.com, the music app “have over 12% of our base that subscribes to our services and have had over 2mn songs that are downloaded on an monthly average in the paid services.” The music app has seen more than 7 million downloads, since its launch in the last 17 months.
According to the Indopia, the online hub for viewing movies, the company will “very soon launch an app on android which will let our users download movies in SD quality. They will have to pay for a particular movie,” told Narottam Giri, Head- Content Division to DailyBhaskar. Indopia is also planning around a music app for providing online and offline services in more than 25 Indian languages.
Saavn has not disclosed its latest list of subscribers. However, the company in March 2013 claimed to have about 2 million active users on mobile platform. The company might announce something new later this year.
Google jumps into this competition
With the Android One now officially out, Google plans for getting YouTube in offline mode also kickstarts. At the launch of the Android One cheap handsets for India, Google announced that YouTube is going to support offline mode in India. This will be via YouTube app that would allow the users to cache videos on their devices for several days and watch them later at your convenience, without a data connection.
Mobile phones make almost 40% of YouTube’s global watch time and over 6 billion hours of video are watched each month on YouTube. One can just imagine the reach of YouTube if the service is accessible without the need of data connectivity.
Why is there a need to say “LET’S GO OFFLINE”?
The need to go offline emerges from the need to tap those who have access to smartphones but do not have access to Internet. Today 40% of the world population is hooked to Internet. This was less than 1% in 1995. But making Internet reach the rest of 60% of world population, major part of which is concentrated in emerging markets is a big challenge today.
According to InternetLiveStatistics the first billion was reached in 2005, second billion in 2010 and the third billion is expected to be reached by the end of 2014.
When we look at India, in the list of top 20 countries with Internet, India is the one with the lowest penetration with 19.19% people on Internet. But the smartphone market is growing with huge leaps and bounds here. According to the Telecom Subscription Data as on 31st July, 2014 released by Telecom Regulatory Authority of India (TRAI) number of telephone subscribers in India has increased to 946.40 million at the end of July. This includes 918.72 million wireless subscribers (users of feature phones and smartphones).
This is precisely the reason why combining phones and offline mode for service delivery is being considered very important.
Harshendu Shridhar who’s an app developer and is currently working with Ericcson is looking at this new development as a great advantage. He says “We as app developers will be able to reach more people than before. With offline content available on phone, user will save big data costs, because they do not need to be hooked to Internet 24×7. Though data packs are cheaper in India, many still do not use data network on their phones. For them, this service will be useful.”
Shridhar however does not think these services will be ‘extremely successful’, but he says these services will ‘gradually catch up’ and become popular. It will be a great success once every content owner allows to access content for the offline access.
Do you know YouTube offline is not Google’s first such effort in India?
In middle of 2013, Google Music India, a service that allowed people to search for music by names of artists, movies, albums or song titles was shut down in India. This was just a ‘Lab products’, that is testing product. So, our hopes were on the Google Play Music. This service started rolling out services to European countries (the service was rolled out in 20 countries) last year in October, but India was excluded from the list.
This was because of “legal constraints” points out Firstpost which we understand as we take you through the ‘Indian landscape of online music started on a bumpy road’ section. We know Google’s own money transfer portal Google Wallet does not work in India!
Is the age of iPods over?
For a long time there was only Apple offering such services via iTunes.
But in last two years the sale of iPods has declined continuously. In January 2014 Apple CEO, Tim Cook Apple admitted that iPod sale is “declining”. According to Apple Q2 2014 earnings, iPod sale in Q2 2013 was at 5633 units contributing $962 millions. This increased slightly by Q1 2014 as it sold 6049 iPods and earned $973 millions from it. In Q2 2014 the revenues from this dropped significantly as it sold only 2761 units and earned $461 millions from iPods. (Source: Apple, Q2 2014 Unaudited Summary Data) Many technology experts described this declining sale figures as ‘the age of iPod is over’.
This essential gadget, mp3 player, that used to be the companion of students and youngsters few years ago is becoming redundant after cheap 4 inch and 5 inch handsets attack the Indian market, with a possibility to add a micro SDcard to store songs.
But things were not this promising few years ago. In India music streaming (which you can also call streaming audio) on mobile phone started on a bumpy road. Some of these issues still effect the online music and music streaming industry in India.
Indian landscape of music streaming on mobile phones kickstarted on a bumpy road
When we talk about music streaming on mobile phones in India, this industry actually began with FM radios which offered free music streaming on phones that are not connected to the Internet. Do you not remember the Nokia INR 1,200 handsets accessing at least 5 FM channels to bring music on the go?
Later with a better broadband structure in place, online music tracks were offered as websites that were dedicated to such service. These however, also came as unofficially distributed tracks uploaded to streaming websites by fans.
Jayson Beaster-Jones in Bollywood Sounds: The Cosmopolitan Mediations of Hindi Film Song points out “As urban and metropolitan India gradually developed a broadband Interne structure in the mid-2000s, streaming sites became an important mode for promoting music for both people living in India and audiences outside of it.”
This music streaming industry was marred with multiple issues. We believe that the some of these problems both the industries, FM radio and online music industry face. Just to remind you once again, the former offers streaming music to mobile phones that are not hooked to Internet and the latter works via websites and apps.
We are listing these issues here –
The spectrum mess
Indian government conducted open auctions for radio spectrum licenses (phase I radio spectrum license auctions) in the year 1999. Of the 108 licenses that were issued, only 22 became operational in only 12 cities. The Radio companies thought the strict content code for broadcast is the reason for losses, which made it difficult for them to pay money to the government. Court cases followed because of royalty issues. By the IInd phase in 2005, the annual escalating license fee of 15% of the Ist phase was scrapped and replaced with a one-time entry fee in addition to a 4% revenue-sharing agreement. (Source: Arun Mehta and Manasi Dash, A Rational Spectrum Policy for India)
Because of this issues radio channels failed to take off and many who could have benefitted from free music service remained out of the ambit.
And then, the bandwidth issue
High cost of spectrum that is auctioned, combined with the cost of laying optical fiber and maintaining mobile towers, has made Bandwidth costly in India. No doubt while the whole world is done with 3G and is implementing 4G spectrum India is yet to see pan-India implementation of 3G. Recently the Narendra Modi government is planning to reach the Panchayat headquarters and connect them under the National Optical Fiber Network Project.
Narottam Giri of Indopia, India’s first company offering online video content to consumers points out “Bandwidth is still costly in India so offline trend is a relief.”
“GBs and MBs are still foreign concepts to many Indian consumers to sign up for data”, says Vinodh Bhat of Saavn to Medianama in January this year.
Then, there was the issue of piracy. We keep coming across the online music stores coming under the scanner of music industry because of copyright issues. In February 2012, the Calcutta High Court issued an injunction ordering 11 ISPs to block access to the infringing website songs.pk. BitTorrent sites including KickAssTorrents, The Pirate Bay, Torrentz have also faced such blocking orders from time to time.
This is a glaring issue as the tracks sometimes full movie lands on torrent websites (for free download) immediately after its release, making people rush to these websites rather than official music or video stores.
How to make a model that is profitable?
Even after these issues music players like Gaana, Dhingana and Saavn and more download stores begin to emerge. But another major issue still remains.
How to get people billing for services when a very little part of the population has a credit card. Of the Indian population of 1252 billion, only 19 million Indian have credit cards, according to the Report of the Group on Enabling PKI in Payment System Applications by RBI dated April 22, 2014.
Siddhartha Roy, CEO, Hungama in an interview to NextBigWhat in 2012 agreed that “it is tough to build ad based online destination for listening music as ad supported structure is very less.”
Flipkart started Flyte music streaming service in 2012, but it failed to take off. The reasons were music piracy, lack of easy micro payments, expired deals and less number of users willing to pay for a-la-carte music, notes Nikhil Pahwa Founder of Medianama.
Dhingana with 15 million active users in 2013 had to shut down its operations in February 2014. This happened soon after the biggest music label in India, T-Series, decided not to renew its contract with the company.
Do let me know what you think about offline music streaming services via mobile apps in India.
This report is published today in DailyBhaskar.com