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Mobile Speech: Unlocking Personal Apps, Features and Functions

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Mobile Speech: Unlocking Personal Apps, Features and Functions Mobile Speech: Unlocking Personal Apps, Features and Functions The forces of human nature, technological progress and regulatory stricture are converging to boost interest in “truly hands-free” mobile applications. Dozens of firms have responded with a broad variety of software, services and features that work remarkably well. Next step: to build a sustainable market model. September 2009 Dan Miller Sr. Analyst Opus Research, Inc. 300 Brannan St., Suite 305 San Francisco, CA 94107 For sales inquires please e-mail [email protected] or call +1(415)904-7666 This report shall be used solely for internal information purposes. Reproduction of this report without prior written permission is forbidden. Access to this report is limited to the license terms agreed to originally and any changes must be agreed upon in writing. The information contained herein has been obtained from sources believe to be reliable. However, Opus Research, Inc. accepts no responsibility whatsoever for the content or legality of the report. Opus Research, Inc. disclaims all warranties as to the accuracy, completeness or adequacy of such information. Further, Opus Research, Inc. shall have no liability for errors, omissions or inadequacies in the information contained herein or interpretations thereof. The opinions expressed herein may not necessarily coincide with the opinions and viewpoints of Opus Research, Inc. and are subject to change without notice. Published September 2009 © Opus Research, Inc. All rights reserved. Mobile Speech: Unlocking Personal Apps, Functions & Features Page ii Key Findings: • Voice control of mobile services has made great strides – A common theme in our research this year is that “the technology works!” and makes for a much-improved user experience. • More companies have joined the ecosystem – The lure of mobile speech has attracted dozens of technology providers, application developers and solution providers (many of whom are profiled in this report). • Ecosystem members learning to play together – Pursuit of the mobile masses has attracted providers of core technologies, builders of applications, retailers and “arms merchants.” • Revenue models are all over the place – As with mobile applications in general, the top-line revenues come from a number of sources, including: technology licenses, monthly subscriptions, advertising and percentage of transactions. • So is application quality – Better building blocks (in the form of recognition software, SDKs, APIs into mobile commerce resources) have attracted more developers, but not all create truly useful services. • Focus has shifted to results – Whether its updating Facebook status, finding a song or artist or originating a text message, users of mobile speech are task-oriented. • Success is measured by task completion – Rather than engine accuracy or automation rates, users want voice to help them accomplish specific objectives. • Adoption is a lagging indicator – With a broad spectrum of applications and services available, awareness is gaining; but successful, repeated use is not yet a reality. • The “Long [Coat] Tail” of the iPhone – Making “Voice Control” a standard feature of the new iPhone 3G S is a legitimization moment for application control, mobile search and dictation. • “Truly hands-free” apps are the next frontier – Most speech enabled apps require a “button” to initiate recognition, but the next frontier is achieving hands-free/eyes-elsewhere engaged usability. © 2009 Opus Research, Inc. Mobile Speech: Unlocking Personal Apps, Functions & Features Page iii Table of Contents Key Findings: ...................................................................................ii Speech: A Key To Unlocking Mobile’s Potential......................................1 Mobilizing the Internet............................................................... 1 Revenue Models for Mobile Speech .............................................. 2 The Skype Syndrome................................................................. 4 The iPhone Effect ...................................................................... 4 How Speech Has Evolved ...................................................................5 “Hybrid” Applications Will Be the Norm ........................................ 5 Compelling Applications Drive Adoption........................................ 6 Mobile Devices Vary in Size, Expand in Variety and Reach .............. 7 Apple’s iPhone is the Game Changer............................................ 8 The Larger Opportunity is in “Feature Phones” .............................10 Safety is a Driving Force ...........................................................10 Going “Truly Hands-Free”..........................................................11 Time to Leverage Mobile Speech .......................................................12 Appendix: Profiles of Vendors ...........................................................13 The Three Voices of Google .......................................................13 Microsoft Has its Own Identity Issues .........................................15 Nuance Mobile: A Multimodal Approach.......................................16 The Contenders ..............................................................................17 Creaceed ................................................................................17 Ditech Networks.......................................................................18 Fonix ......................................................................................18 Handheld Speech .....................................................................19 Jott ........................................................................................19 Loquendo................................................................................19 Melodis ...................................................................................20 Metaphor ................................................................................20 Novauris .................................................................................21 One Voice Technologies ............................................................21 PhoneTag (formerly SimulScribe) ...............................................22 Promptu..................................................................................22 QTech.....................................................................................23 Sakhr Software (Dial Directions) ................................................24 Sensory ..................................................................................24 Siri, Inc. .................................................................................25 SpeechCloud ...........................................................................25 SpinVox ..................................................................................25 Vlingo.....................................................................................26 VoiceActivation ........................................................................26 VoiceBox Technologies..............................................................26 Yap ........................................................................................27 Ydilo AVS ................................................................................28 © 2009 Opus Research, Inc. Mobile Speech: Unlocking Personal Apps, Functions & Features Page iv Table of Figures Figure 1: Mobile Internet Leading Indicators ............................................ 2 Figure 2: The Mobile Speech Opportunity (in thousands) ........................... 3 Figure 3: What is "Hybrid" Speech? ........................................................ 6 Figure 4: Voice Activated Apps for the iPhone .......................................... 9 Figure 5: Assessed Risk of Driving While Using Cell Phone ........................11 © 2009 Opus Research, Inc. Mobile Speech: Unlocking Personal Apps, Functions & Features Page 1 Speech: A Key To Unlocking Mobile’s Potential On the desktop, the Internet offers entertainment, search, messaging, Web browsing and social networking, among other activities. These time-wasting life enhancers make for a compelling online experience. Their addictive qualities drive efforts to make the Internet mobile. “Push email” precipitated the growth of RIM’s Blackberry. Flat-screen, multi-touch interfaces fueled access to multiple apps on the iPhone. Our premise in this report is that a well-devised and designed voice user interface (VUI) is the next step in accelerating the mobilization of Internet- based applications. Using one’s voice is the most natural mode for communicating over the phone. Though (as avid texters know) it will never be the only modality, which is why today’s developers and technology providers are getting better at creating a user experience that includes voice (when appropriate), and tailors it to a broad spectrum of mobile devices, including phones, laptops, netbooks, personal navigation devices and media players. There is strong evidence that, over the past five months, mobile speech – or the mobile VUI – has improved significantly on several fronts. Core recognition capabilities have improved thanks to the use of constrained grammars, and the use of “distributed speech processing” has allowed server-side automated speech recognition (ASR) and application design that is more task-oriented. What’s more, a generation of punditry that had been characteristically skeptical
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