Mobile operators’ margins have come under increasing pressure in recent years as consumer habits have shifted to using over the top services such as Whatsapp and Skype to communicate with their friends and colleagues, rather than billed for voice and video calls.
That trend is one of the reasons O2 began trialling a service called O2 Connect in 2011 that allowed its users to make calls over the internet. This was later rebranded to Tu Go and the service has formed part of O2’s “Be More Dog” marketing activity this year.
The latest product, O2 Clip, lets users create short video messages up to 63-seconds long to share with friends via their UK mobile numbers, email addresses or Facebook inboxes. Recipients can choose to view the video using the app themselves or via a dedicated mobile-optimised website.
The service uses technology powered by Six3, a start-up technology company that graduated from O2 owner Telefonica’s accelerator Wayra Academy in 2012.
O2 Clip It is currently a trial service and O2 says there are no monetisation plans or opportunities for brand involvement at this stage.
David Plumb, Telefonica UK digital director, told Marketing Week in the videos below the company is adopting an “agile process of understanding consumers needs so we can really hit something that hits the spot, so when we do launch this product it’s something we can sell in the millions.”
Earlier this week O2 launched another new digital product, #TweetServe, a CRM programme which allows customers access to their account information via direct messages on Twitter.
O2 had a 23.5 per cent share of the UK operator market in October this year, ahead of Vodafone (19.7 per cent) and Orange (12.7 per cent), according to comScore.
What is the business strategy behind the app?
How do you plan to scale it?
Do you have monetisation plans for Clip It?