The mobile phone and music business is very competitive. O2 stole the show with iPhone and has taken market share as a result. The latest development in the industry is with Orange launching a free music service. This is a first for a pay as you go service. It is all too easy for a customer to opt out without a contract..The challenge is for Orange to create a service people want to be part of and therefore create loyalty to the brand..
They will target 16-24 age group and offer a whole range of services that this group love. They are keen users of social networking and this service gives the chance to create and share playlists. Orange will partner with Universal Music to give access to thousands of tracks from the like of Lady Gaga, Duffy and Mika to name but a few.
The service which is called Monkey will be more of a club that people want to join and not to be bound because of a contract. This will include exclusive music, artist reviews and competitions. There will also be free texts as a part of the deal.
Universal for its part will promote Monkey via its 4Music channel. The challenge as with all free services it to monetise. The 16-24 year olds are very difficult to reach. If Orange can build Monkey to a sizeable force then it can give brands the chance to target them with targeted offers.
Marketing Lessons– Building new customers and monetizing free services. Joint ventures