After a nearly $1 billion write-down of inventory, RIM and Blackberry received a fresh of breath air this past week as Blackberry Messenger (BBM) became the #1 most downloaded application in 80 countries.
Blackberry’s most prized possession and successful differentiation product, BBM, has touched down on iOS and Android devices and made a hit. It has received hype across the globe by reaching Blackberry users, many of whom have adopted iOS and Android devices, but still have an undying love for the messaging giant BBM that highlighted their Blackberry experience. By making BBM available to iOS and Android devices, Blackberry has expanded its customer segment for its product line.
The question is: Can BBM be the catalyst to a turnaround for the apparently dying company, Research in Motion?
BBM currently has approx. 60 million Blackberry BBM users and 15 million iOS/Android users. The iOS/Android number has a high growth potential. How can the company leverage BBM, a free download application that currently offers no paid add-on features or advertising, to create cash flows?
That depends entirely on whether Blackberry can build an effective content distribution/ marketing system on top of BBM. If it can copy the LINE playbook and start offering social games to iOS/Android users, Blackberry could emerge in the game platform market as a strong competitor. BBM currently has strong traction across Latin America, North America, Caribbean, Africa, Middle East and SE Asia.
A successful global BBM network is a potential marketing platform that could reach revenue of tens of millions a quarter.
The future of Blackberry now rides on how the company handles its BBM content delivery service. By rolling out a clear effective strategy similar to LINE-like content offerings tailored to each major market, the company could substantially increase its company valuation.
One reply on “The Future of Blackberry and BBM”
As a previous Blackberry User and current owner of an Android, I must say I do miss the Blackberry’s tangible button keyboard and BBM application. Now that I have downloaded on my Android, I notice that it utilizes a lot of my data which is a downside to this application…
Regardless, I agree that by making BBM available to other operating devices such as Androids and iOS devices, Blackberry has expanded its customer segment for this product line. I commend Blackberry for this, but I do not see how Blackberry can compete against other smart phone companies who not only provide quality service, ample add on options, a variety of applications, and a new device every 6 months.