Third largest telecom carrier in the US Sprint-Nextel Corp. (S) has launched a music and video application for smartphones running on Google Inc.’s (GOOG) Android-based operating system. The latest application from Sprint’s stable is going to distinguish its application portfolio from that of its rivals.
The latest application known as Entertain Me is located within Sprint Zone on some select Android-based smartphones running on Sprint’s network. The application allows searching for online music, through partners Spotify and Shazam and also access video-on-demand services via SprintTV and Movies.
Sprint’s TV and Movies, which is powered by MobiTV, provides access to 15 different channels that telecast primetime shows including live NBA and MLB games. On the other hand, Spotify provides customers privilege to search from a list of almost 20 million songs. Entertain Me also includes contents like Sprint Music Plus, Slacker, iHeartRadio and Rampus.
Sprint customers can watch and listen to anything they want to with the company’s recently launched Everything Data plan – priced at $79.99. The plan allows unlimited web browsing in Sprint’s nationwide network.
Downloading and utilizing of application by smartphone users is rapidly increasing. The average number of applications on US consumer devices soared 28% in 2012. The unprecedented use of application by smartphone customers will force application developers to come up with many more applications.
According to research firm IDC, at the end of 3Q 2012 Android holds a global smartphone market share of 75%, way ahead of second place occupied by Apple Inc.’s (AAPL) iOS platform, which has penetrated only 14.9% of the smartphone market.
Sprint wants to capitalize on this exceptional growth as higher sales of Android based phones, as it will likely translate into higher use of its applications. However, we believe to gain mass acceptance, the application should be upgraded to run on other operating systems.
We maintain our long-term Neutral recommendation on Sirius XM Radio. The company holds a short-term Zacks Rank #3 (Hold).
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