RIM looks to make social networking part of BlackBerry's strategy

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(The Canadian Press)

By Luann Lasalle, The Canadian Press

MONTREAL - Well established as the business mobile device of choice, the BlackBerry may soon become a much more social smartphone, says the co-CEO of creator Research In Motion Ltd.

Jim Balsillie says RIM wants the BlackBerry positioned to tap into the growing trend of Internet social networking sites such as FaceBook.com that allow consumers to share information about their lives, and access multimedia content, particularly music, on their mobile devices.

"Architecturally, music and the social networking are going to merge," Balsillie said ahead of a Thursday speech to the Canadian Music Week festival in Toronto.

"So when you want music, do you want to buy hits or do you want to be part of a community? That's the big question."

Research in Motion is one of Canada's most valuable corporations, worth more than $56 billion, and is one of the country's best known technology companies, with revenues of more than $3 billion for its last fiscal year.

While the company has rapidly grown its BlackBerry business with corporate and government customers, it is facing rising competition in that field and is now branching out with news devices aimed at the ordinary consumer and the exploding social networking business.

Balsillie said improved Internet technology on mobile devices - like the BlackBerry and its up-and-coming competitor from Apple, the iPhone - has increasingly enabled them to tap into the social networking trend, which allow musical artists and fans to interact directly.

While social networking has given fans more access to their favourite music at home via land-based Internet connections, taking it mobile will allow them more options on the fly.

"It's not just here's a cheaper way to buy songs. It's not just about buying songs. It's about community," Balsillie said.

The BlackBerry dominates in business by giving its users instant, secure access to their corporate e-mail. But it's competing for consumer's wallets with Apple's multimedia iPhone, not yet available in Canada but already gaining a following in the U.S.

RIM wants to tap into the kind of "viral" success that FaceBook and more recently DipDive.com - a social networking site supporting U.S. presidential hopeful Barack Obama - have enjoyed.

Balsillie cited the involvement of Black Eyed Peas frontman Will.I.Am. and DipDive as an example of how music and social networking come together on the Internet.

He said that Will.I.Am would speak at Canadian Music Week on Thursday via video link about DipDive and how it's becoming a "social networking force with content."

"What's interesting is he believes that it's the merger of a social force and a lifestyle and a source of good and a source of community for the fan," Balsillie said.

"And I was always wondering when the artists were going to take back a direct relationship with the fans."

Will.I.Am and a host of celebrities created the "Yes We Can" video, promoted and available on DipDive for Obama's run at the Democratic nomination.

"That's the point that really gets my attention, because these guys now realize that it's not just a portal relationship, it's a social relationship," said Balsillie.

"It's an architectural merging of portal, social and music sites."

Balsillie said the new trend could replace other ways of communicating on mobile devices.

"The intensity of the social networking collaboration I believe is increasing, or it may displace e-mail or IM (instant messaging) because it's a shifting of collaboration, too," he said.

For BlackBerry users, the merging of social networks and music would mean more ability to access sites such as DipDive, where they could read blogs, get social commentary, new music and videos and check out concert tickets, Balsillie said.

"It becomes a direct way for the fan to interact with the artist and fundamentally also get their content directly. The record labels are partners in it."

He said the merging of social networks and music will help the BlackBerry in the consumer market, where it anticipates competition with the iPhone.

"It positions us exceptionally well. It shifts the social networking and the architectural merging to our strengths."

Balsillie said RIM wants to share in trends outside of the business world and is keenly aware that consolidation in the entertainment industry will create enormous opportunity for players in mobile sector.

"It's going to be merged by smart players with multimedia content and the smart artists and content owners are going to rapidly enhance their role in this new world, if they play their cards smart rather than being sort of passive....," he said.

"It's going to be a much more democratic relationship."