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Friday
10 February 2012

How Much Will Nokia’s Ovi Password Integration Help Its Bottom Line?

ovi How Much Will Nokias Ovi Password Integration Help Its Bottom Line?

I found a Reuter article I came across earlier today interesting.  In an attempt to improve the consumer uptake to its internet-based Ovi service, Nokia has changed its policy to only require one username and password for its Share on Ovi service and Ovi.com.  Ovi consists of a variety of services including Nokia Maps, its N-Gage gaming platform, Share on Ovi, and the Nokia Music Store–plus more–but previously each service required its own username/password combination.  Analysts have pointed this out as a potential barrier to Ovi’s success, and it’s true.

Turn your thoughts to the sheer amount of social networking platforms and Web 2.0 services these days that people use.  I know from my experience that username and password management can be a huge hassle.  If I forget my password for a particular service, it’s likely that I won’t use it again if its a service I use for entertainment or recreation.  That’s one of the great things about Facebook Connect–which will be coming to GPSObsessed soon–and Google Friend Connect–join our site.  Most people that take the time to comment on blogs use Facebook or a Google service.  By using a username or password from one of those respective services, it removes a whole whack of registrations usually required to comment on blogs.  As more sites integrate the Connect services into their publications we’ll probably see a lot more reader interaction.

I would think the same would work for Ovi.  But what I’m really curious about is the one username/password change on Ovi’s bottom line.  The reason Nokia has been pushing the last year to increase its mapping, media, networking and internet businesses is to offset slowing cellphone market growth.  How much difference could a username and password make to potential revenue growth?

We’ll have to see.  Nokia hopes to earn revenues of $2.79 billion in 2011 from its Ovi services and in the July to September quarter of 2008 brought in $115 million.  It’ll be tough to tell.  It’s reasonable to expect some natural growth in the fourth quarter and we wouldn’t see any expect from the password change until spring of 2009.  But if there is growth, how much of it would be related to the change?  Does anyone know of any similar case scenarios?

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