Changing Mobile TV and Video, Cramped Ad Spend
How much revenue will come from ads, and how much from subscription fees?
Worldwide mobile video/television revenue forecasts tend to diverge significantly depending on what is counted and how.
A recent forecast from Informa Telecoms & Media projected that mobile video and television will reach $4.8 billion by 2012, up from $750 million in 2007. The extent of ad-supported versus paid content is not clear from this research.
Specific mobile video revenue forecasts have emerged as well. In November 2007, iSuppli published figures stating that mobile video revenues worldwide will reach $14.6 billion in 2011, with an ad-supported component totaling $3.8 billion.
The company also reported that mobile video advertising worldwide will reach $427 million in 2008. Frost & Sullivan expects mobile TV revenues in Asia-Pacific (excluding Japan) to climb to $1.88 billion by 2013, up from $440 million in 2007.
Given the wide diversity of market penetration and revenue numbers, marketers cannot look exclusively to the supply side for clear answers about the direction of mobile video and television. [eMarketer]
Digital Platforms Account for 6% of Olympics Viewers
By Jason Ankeny
The Beijing Summer Olympics are galvanizing viewer interest in alternative broadcast platforms according to NBC Universal, which notes that its digital efforts are complementing, not cannibalizing, its conventional TV programming.
According to NBCU's total audience measurement index, or TAMi, 74.6 million viewers tuned in for Friday's Opening Ceremonies--while television accounted for 94 percent of the audience, online viewing represented 5.7 percent, mobile TV accounted for 0.03 percent and only about 36,000 viewers (0 percent) watched via video-on-demand.
"To some extent, these Olympics are staring to influence how people use new technology," said Alan Wurtzel, NBC Universal's president of research and media development. "About half of people who use mobile [to watch NBC Olympics content] are using it for the first time."
In addition, digital viewership is increasing as the Games continue: According to Wurtzel, web viewers grew from 4.8 million uniques Saturday to 7.8 million on Monday, with TV viewing also on the upswing during the same period. On Sunday--the most viewed day of the Summer Olympics so far--113 million viewers tuned in for NBC coverage, with television accounting for 107.3 million viewers, NBCOlympics.com contributing 5.1 million unique visitors, NBC's mobile site welcoming 494,506 unique visitors and VOD content attracting 27,594 viewers. [FierceMobileContent]
The Big Picture on Small-Screen Advertising
Imagine holding all TV programming, movies and millions of user-generated videos in the palm of your hand—then add in a few spot ads.
When it comes to justifying serious investments in mobile video and television advertising, marketers are struggling.
On one hand, they cannot ignore the attraction of combining the reach of television with the targeting capabilities of mobile. But, on the other hand, consumer adoption of mobile video and television so far has been underwhelming.
"Historically, the gap between hope and reality for mobile video/television has been attributed to immature technology," says John du Pre Gauntt, senior analyst at eMarketer and author of the new report, Mobile Video and Television: Ads Wait for a Clearer Picture.
"Video content on mobile phones looked broken or washed out. Soundtracks often did not align with the moving images," explains Mr. Gauntt. "The mobile devices themselves were voracious consumers of battery life when displaying video content. And carriers were not sure how commercial video and television services would affect their mobile networks."
Read more - eMarketer
Study: Consumers Not Sold On Mobile Video Services
While nearly one-third of U.S. households have a video-capable mobile phone, operators are struggling to find an audience for their mobile video services, according to Mobile TV: Analysis & Forecast (Second Edition).
This new report by market research firm Parks Associates found a majority of consumers with a video-capable mobile phone have never used the video features. For example, 56% have never watched a video clip using a mobile phone. These low usage rates are discouraging for operators hoping to boost revenues through new TV and video services.
"Buy before you try is always a tough sell," said John Barrett, Director of Research, Parks Associates. "Most subscribers must pay additional money to watch video and mobile TV services, even once they have purchased an appropriate phone. This circumstance presents an obvious chicken-and-egg obstacle to adoption. Many consumers are hesitant to pay for a new, unfamiliar service, but they will remain unfamiliar with the service until they or someone they know uses it."
The report predicts operators will overcome this challenge by offering more programming at no cost. "A free taste would go a long way in making the consumer case for mobile TV," he said. "Mobile TV services have taken off in Japan and South Korea, where service is offered free of charge. In Italy, where additional fees have been the norm, usage has been limited. It's in everyone's interest to offer some free programming." [FierceMobileContent]
TV Trends: All TV, All the Time, Everywhere You Look
Keyword: Online TV, Mobile TV, Digital Media
TV or not TV? That is no longer the question.
According to Nielsen, the average American watched 4 hours, 34 minutes of TV per day during the 2006/2007 season. That's an increase of 36 minutes per day from a decade earlier.
Looking further forward, eMarketer estimates that TV advertising spending will reach $75.4 billion in 2012, up from $67.8 billion in 2007—a compound annual growth rate (CAGR) of only 2.1%.
Online advertising spending, in contrast, is forecast to grow annually at 19.2% over the same period and will overtake TV advertising spending in the US within 10 years.
"At eMarketer, we believe TV viewers will watch more, not less, TV content in the future," says Ben Macklin, senior analyst at eMarketer and author of the new report, TV Trends: Consumers Demand Control. "But they will be accessing and viewing it in different ways from the past."
eMarketer estimates that by 2012 nearly 25% of all TV content watched each day will be time-shifted, on-demand, on the Web or on a mobile device.
"Video-on-demand, digital video recorders, the broadband Web and 3G mobile phones are giving consumers new ways to access and watch TV," says Mr. Macklin.
Read more - eMarketer
TELSTRA Selects Streamezzo to Power Interactive Mobile TV Offering
CommunicAsia2008 Conference - Singapore - June 18, 2008 : Streamezzo, creator of the Universal Software Platform™ that overcomes mobile industry fragmentation and powers the Mobile Internet, today announced that Telstra, Australia's leading telecommunications and information services company, has selected Streamezzo's software platform and professional services team to design, develop and deploy the first fully interactive Mobile TV service in Australia.
Telstra's Mobile FOXTEL™ TV offering was developed and launched in late 2007 by Streamezzo in partnership with Alcatel-Lucent. Telstra's new Mobile FOXTEL service was developed with Streamezzo's Universal Software Platform with the ultimate goal of creating the most unique, compelling and intuitive Mobile TV experience for users. The new handset environment includes an easy-to-use on-screen application offering ready access to the most advanced Mobile TV features available on the market today, including a video-on-demand catalog and an interactive Electronic Program Guide (EPG). The cross-platform capabilities of the new offering allow FOXTEL customers with FOXTEL iQ to remotely record content on their home set top box via the EPG on their mobile handset.
"The extension of FOXTEL Digital functionality into our Mobile FOXTEL service" said Ms Holly Kramer, Telstra Group Managing Director, Product Management "shows Telstra's commitment to delivering convergence between products where it creates relevant new functionality for our customers"
Key among Telstra's decision criteria in selecting a development partner was a need for broad support for a diverse range of mobile handsets. Streamezzo's Universal Software Platform is compatible with all mobile operating systems and seamlessly supports video applications in both unicast and broadcast modes, with support for a broad array of audio and video codecs. Streamezzo's comprehensive software platform is certified for interoperability on over 250 mobile devices - a number that is rapidly increasing each month.
"It's a pleasure to work with forward-thinking organizations like Telstra that look beyond the status quo and strive for services that are truly unique and pioneering," said Pierre-Emmanuel Struyven, CEO of Streamezzo. "Together, in partnership with Telstra and Alcatel-Lucent, we have created the industry's most advanced interactive Mobile TV offering, and Telstra is well positioned to maintain its leadership edge with many exciting new enhancements to come." /PR
Mobile TV to Drive Mobile Ad Spending
Juniper Research forecasts that by 2013, worldwide mobile advertising spending will reach almost $7.6 billion, up from just over $1 billion in 2008.
Text message advertising currently accounts for the largest share of mobile advertising with $335 million spent in 2008, but as mobile TV services proliferate, SMS advertising spending will rise to only $2.5 billion by 2012.
Asia-Pacific will remain the regional leader in total mobile ad spending, with $414 million in 2008, rising to $2.1 billion by 2012.
"While ad spending in the mobile environment is still extremely limited when compared to the budgets allocated to media such as magazines, television, cinema and the Internet," said Windsor Holden at Juniper, "the opportunities it offers—personalized advertising with very high response rates, delivered to a device which is always in close proximity to the individual—will make it an increasingly attractive proposition for leading brands." [eMarketer]
HDTV on the Verge of Exploding
Informa Telecoms and Media estimates that only 4% of global TV households will actively watch high definition (HD), programming by the end of 2008, equating to 44 million households.
By 2012, however, Informa forecasts 179 million active HD homes, representing 16% of TV households. HD adoption will be highest in North America. By 2012, HD penetration is expected to reach 70% or 82.5 million active US HD homes and 9.4 million HD homes in Canada.
Asia-Pacific is the second-largest HD region due to early adoption in Japan. By 2012, there will be 49.3 million HD households in Asia-Pacific.
Owning an HD-capable television set does not necessarily mean HD programming is being watched. Informa estimated the number of HD-ready homes in 2008 at 117 million, implying that only 37% of these households are actually watching HD programming. [eMarketer]
Consumer Survey Clarifies US TV Viewers’ Often Baffling Habits
ABI Research conducted an online survey of 1002 consumers in December, 2007, aimed at discovering how US residents view their service providers, what technologies and programming they use, and their price sensitivity towards available service offerings. The details of this revealing survey are contained in a free white paper which can be downloaded from the firm’s website.
The TV viewing habits of American consumers can be baffling, yet service providers and equipment vendors are betting billions of dollars on how viewers will embrace triple/quadruple play services and demand IPTV.
“Americans do a lot of time-shifting with PVRs, and a lot of gaming, and plenty of people have installed home theaters,” reports ABI Research vice president Scan Schatt. “They are likely to consume a lot more video over the next several years.”
The survey found, among other things, that:
- 38% of respondents had home theater systems or game consoles attached to their televisions; nearly as many used DVRs, and only a few used network media adaptors or the Slingbox.
- More than 25% of respondents chose their pay-TV service provider on price. Convenience and promotional offers accounted for nearly as many, but programming quality and customer service mattered for only 15-20%.
- Mobile TV appealed to only 6%. More than one third of respondents would not pay for any of the common add-on services. “We asked respondents if they’d be willing to watch ads in exchange for reduced or zero fees for premium content,” says Schatt. “There was little uptake on the reduced price option, but more for the free option.”
Consumers also revealed a surprising ignorance about their systems. Many were unaware of what their equipment can actually do.
Further results showed that:
- At 65%, news clips are by far the most popular form of online video content, followed by movie trailers and user-generated content (about 43% each).
- Only a few percent use pay-per-view services to watch moves more than once a week, with about 53% doing so only a few times a year.
- About 40% said they owned at least one High Definition TV, but fewer than half of those are paying for HD premium service packages. This suggests more customer education is needed, and that there is a lot of unrealized revenue still out there for the taking. [ABI Research]
The Worldwide DTT Receiver Market Will Reach 350 Million Units in 2013
The worldwide DTT (Digital Terrestrial Television) receiver market will grow from 65 million units in 2007 to more than 350 million units in 2013, representing a compound annual growth rate of 32%. Approximately 85% of 2007’s units support digital television and digital set-top box markets, while 15% comprises other consumer electronics or PC applications, according to a recent report by ABI Research on digital terrestrial silicon receivers.
DTT infrastructure was first established in Japan (ISDB) and Korea (T-DMB); and as a result, DTT receiver penetration in Japan is about 23%, while 34% of Korean households employ systems with DTT receivers.
“By 2013, the DMB-T/H system in China will have about 100 million users,” says Steve Wilson, principal analyst for ABI Research. “China’s national DVB standard GB20600-2006, also known as DMB-T/H, supports both fixed and mobile television applications.”
The rollout of digital video broadcast has arrived in time for the 2008 Summer Olympics in China, with service deployed in nearly 30 cities. In the United States, DTT receiver penetration will reach nearly 100% of TV households, as the last bastions of standard definition and analog cable convert. Moreover, broadcasters will adopt a mobile standard using ATSC (Advanced Television Standards Committee) frequencies – as Samsung and LG present solutions to the industry.
While MediaFLO and DVB-H–based mobile TV solutions certainly are earlier to market, broadcasters own a huge piece of spectrum that may otherwise sit idle. Other mobile operators are receiving support from companies that develop silicon solutions for handsets that sustain analog television distribution, especially in countries where the transition to digital is not expected until well into the next decade.
“All in all,” concludes Wilson, “the market opportunity for digital terrestrial receivers spans many consumer electronics devices. Many of the world’s digital TV standards support mobile and portable applications, and digital receivers are capable of delivering this signal at a fraction of the size and power of previous technologies.” [ABI Research]
Global Mediacom Adopts Nokia Siemens Networks Mobile TV Solution
Nokia Siemens Networks, together with Global Mediacom, today announced a joint collaboration to launch a commercial broadcast mobile TV service, based on Digital Video Broadcast-Handheld (DVB-H) technology, in Indonesia in the first half of 2008.The strategic partnership signed between Nokia Siemens Networks and Global Mediacom – the largest and only integrated media, broadcasting, entertainment and telecommunication group in Indonesia – is the biggest DVB-H agreement signed by Nokia Siemens Networks globally, and this underscores its leadership in real business solutions including professional services, mobile technology and innovations. As a complete solutions partner, Nokia Siemens Networks will provide consulting to maximize the ability to reach and deliver compelling content to early adopters of broadcast mobile TV.
Nokia Siemens Networks Indonesia is responsible for the end-to-end systems and services, which will include consulting, implementation of the entire broadcasting solution and network, systems integration and the relevant business applications. Hary Tanoesoedibjo, Group President & CEO of Global Mediacom, said: “This collaboration with Nokia Siemens Networks marks an important milestone in our venture into integrated media, which combines broadcasting, entertainment, and telecommunication. Supported by an experienced industry player that can provide complete solutions and services for broadcast mobile TV, we are absolutely confident that we can deliver a service that will bring a rich mobile multimedia experience for the consumer.”
“This mobile TV experience, utilizing the latest DVB-H technology, will bring a customer-centric product that is truly ubiquitous. Soon, our customers will be able to watch the latest news, the upcoming Olympic Games, engage in interactive TV shows or even catch their favorite TV series anywhere, anytime, directly on their mobile devices, bringing them closer to the information and entertainment,” added Agus Mulyanto, Ph. D., CEO of Broadcast Mobile TV business.Christian Fredrikson, Head of Asia-Pacific, Nokia Siemens Networks, said: “We are proud to be a part of history in pioneering broadcast mobile TV experience in Indonesia, through our partnership with Global Mediacom. This demonstrates Nokia Siemens Networks’ capabilities in consulting and systems integration and that we are a mature strategic partner in the area of broadcast mobile multimedia solutions. It is in line with our strategy to support innovation together with our customers and our vision of connecting 5 billion people globally by 2015.”
“This is the beginning of an exciting period in the Indonesian broadcasting industry, bringing ‘on the go’ digital television to consumer pockets and ushers in a new era of personal interactive entertainment. With our commitment to provide complete solutions, customers will be able to enjoy a superior quality broadcast mobile TV experience with Nokia multimedia handsets which support DVB-H technology,” added Fredrikson.
Global Mediacom and Nokia Siemens Networks will launch the first services for the Jabodetabek area in the first half of 2008. /pr
Mobile TV Subscribers to Number 462 Million by 2012
As mobile TV services expand over the next five years, ABI Research sees the total number of subscribers growing to 462 million, driven in large part by the expansion of 3G networks, and flat-rate plans for mobile video. The build-out of mobile video delivery networks and an increase in the amount of available content will also contribute to the market’s growth.“Mobile operators’ sustained investment in video delivery will continue to be rewarded by subscribers’ growing adoption rates, particularly as they upgrade to new video-capable handsets,” says research director Mike Wolf. “Consumers are being increasingly enticed by better experiences through more powerful and larger screens as well as by a widening array of subscription options.”
ABI Research sees the Asia-Pacific region as the overall leader in the adoption of mobile video services. The number of subscribers to mobile video services in Asia-Pacific will grow from 24 million in 2007 to more than 260 million by 2012. High levels of penetration will occur in both Japan and South Korea, each a leading market in mobile video services, while China and India will both contribute significantly to the overall total due to very large subscriber populations, even though the overall penetration of video services will remain much lower than in more technologically advanced countries.“South Korea and Japan will continue to lead worldwide, while some countries in Western Europe will also continue to see strong growth,” notes Wolf. “North America will also see some strong uptake as more services become available in 2008 with the launch of AT&T’s MediaFLO service, the continued expansion of Verizon Wireless’ MediaFLO subscriber base, and the growth of on-demand mobile video services.”
ABI Research’s recent study “Mobile TV Services” provides an overview of the mobile TV and video industry. It not only illustrates the entire ecosystem, but identifies and addresses the unmade decisions facing all players in this arena. From this analysis, it determines the most likely scenarios and constructs fundamental usage and revenue forecasts.
Quickplay Debuts VideoStreams via BlackBerry
Mobile TV and video solutions provider QuickPlay Media announced the launch of VideoStreams, a free video streaming service optimized for device maker Research In Motion's BlackBerry smartphones.
According to QuickPlay, VideoStreams features entertainment content including music videos, comedy, horoscopes and extreme sports -- a "send to a friend" feature enables users to share clips with contacts - friends and family. VideoStreams will debut on the BlackBerry Pearl 8130 smartphone and is presently available via EVDO-based networks including Sprint and Alltel. The service is available immediately to customers in the United States and Canada.
VideoStreams is initially available on the BlackBerry Pearl 8130 smartphone to subscribers on North American wireless carrier networks that support EVDO (b), such as Sprint Nextel, Bell Mobility, Telus Mobility and Alltel Wireless.
Eligible customers can visit http://www.videostreamsmobile.com/ using the BlackBerry Browser to download the VideoStreams application over the air and to start using the service right away. Videos are streamed to the smartphone so there are no long waits to view the content, and unlike download services, no additional on-device storage is required.
“The mobile market is exploding – with new applications, devices, and services introduced to the world each day – and RIM is a company at the forefront of this rapidly changing marketplace,” said Wayne Purboo, CEO and co-founder, QuickPlay Media. “We are excited to continue our history of innovation by being the first to offer BlackBerry smartphone customers free access to our high quality video services."
“BlackBerry smartphones are attracting a wider range of mobile customers who want to use more personal applications and entertainment services,” said Jeff McDowell, vice president, Global Alliances at Research In Motion. "In turn, this trend is attracting a new class of developer partners, like QuickPlay, who are creating consumer and lifestyle applications that deliver new experiences for BlackBerry smartphone users."
QuickPlay’s VideoStreams service will be available worldwide to more regions and mobile operators as additional BlackBerry smartphones that support streaming video are rolled out on various wireless networks. [FierceWireless]
2008 Marketing Resolution: Make it New
Emphasizing creativity in the new year.
Innovation is the name of the game for 2008, judging by an October 2007 Next Level Strategic Marketing Group survey of marketers.
Nearly two-thirds of respondents said their upcoming strategies would include innovations, line extensions or new marketing initiatives.
Past regrets were partly responsible for the focus on new thinking. More than one-fifth of respondents wished they had been less dependent on “tried-and-true” marketing tactics in 2007 and found more creative ways to reach their audiences.
Although more than half of respondents planned to kick off a new ad campaign this year, they did not necessarily expect advertising to have the biggest effect on business. Only 13% thought that new ads would affect their businesses the most in 2007.
That uncertainty about the effect of advertising is understandable given the changes in media consumption. US consumers are spending more time online and often using DVRs to time-shift their TV viewing, creating a disconnect with marketers who rely solely on the same old ad buys they've made for years.
Many marketers expect TV ad budgets to take a hit in the next few years, according to a BusinessWeek survey.
Read more - eMarketer
AT&T to Debut Mobile TV 'As Early As Possible' in 2008
AT&T said it plans to launch its long-planned live mobile TV service "as early as possible" in 2008, citing efforts to improve the user experience as the culprit behind the delay. AT&T told Multichannel News the MediaFLO-based service will launch with eight live, linear channels: CBS Mobile, Fox Mobile, NBC2Go, NBC News2Go, ESPN Mobile TV, MTV, Comedy Central and Nickelodeon.
Neither pricing information nor an official brand for the service has yet been announced. Also unknown is the role of spectrum licenses totaling $2.5 billion acquired by AT&T in October from Aloha Partners, parent firm of DVB-H-based mobile broadcast TV service Hiwire.
AT&T and MediaFLO were expected to debut their mobile TV offering in the fourth quarter of 2007. "The testing of the software and hardware is going very, very well, but we decided to take just a little extra time to make sure the user experience is absolutely optimal," said AT&T executive director of media relations Mark Siegel.
Siegel confirmed that AT&T’s mobile TV service will carry the lineup of eight live, linear channels offered by MediaFLO, which are CBS Mobile, Fox Mobile, NBC2Go, NBC News2Go, ESPN Mobile TV, MTV, Comedy Central and Nickelodeon.
AT&T will announce pricing information – and the name for the mobile TV service – when it launches next year, Siegel said. Verizon Wireless’ V CAST Mobile TV is available in different tiers for $13 to $25 per month in addition to regular phone-service charges.
Meanwhile, AT&T recently procured wireless spectrum holdings that it may use for mobile video services. In a $2.5 billion cash deal with Aloha Partners, AT&T picked up two 6-Megahertz channels in the 700-MHz band, covering 281 U.S. markets. [FierceMobileContent]
Mobile TV to Miss 2008 Milestones
While many international operators have targeted 2008 as a turning point for mobile TV, citing consumer demand tied to the Beijing Summer Olympics and soccer's UEFA Euro 2008 Championship, media analysis firm Screen Digest predicts those opportunities are likely to be squandered.
China, France and Germany are all planning significant mobile TV rollouts next year, but according to Screen Digest senior mobile media analyst David MacQueen, "coverage will be far from nationwide when key sporting events kick off … [and] a key opportunity to measure European consumer desire for mobile TV services is likely to be lost."
MacQueen adds that fledgling 3G TV services from Orange and Vodafone will enjoy a viewership boost, while broadcast services in the U.S. and Italy should see a significant subscriber surge as well.
On the other hand, Chinese regulators has announced the creation of a 400 million Yuan ($54 million) government fund to galvanize mobile TV technology development over the next three years.
According to China's Ministry of Science and Technology, the funds are earmarked to create domestic mobile TV standards in an effort to sidestep paying platform royalties to foreign firms. The State Administration of Radio, Film and Television will oversee the fund. [FierceWireless]
Forecast: Mobile TV to Miss 2008 Milestones
While many international operators have targeted 2008 as a turning point for mobile TV, citing consumer demand tied to the Beijing Summer Olympics and soccer's UEFA Euro 2008 Championship, media analysis firm Screen Digest predicts those opportunities are likely to be squandered.
China, France and Germany are all planning significant mobile TV rollouts next year, but according to Screen Digest senior mobile media analyst David MacQueen, "coverage will be far from nationwide when key sporting events kick off namely the Olympics and UEFA Euro 2008 Championship. A key opportunity to measure European consumer desire for mobile TV services is likely to be lost,”
MacQueen adds that fledgling 3G TV services from Orange and Vodafone will enjoy a viewership boost, while broadcast services in the U.S. and Italy should see a significant subscriber surge as well.
However, where broadcast services have already launched, such as Italy and the US, these events could provide a significant surge in subscribers. Sports programming from the likes of Sky (in Italy) and ESPN (in the US) has already proved popular and could drive uptake of mobile TV in those countries." [FierceMobileContent]
2012: Mobile Video Messaging Opportunity Will Reach $10 Billion
Mobile video messaging services are at the center of the technology convergence that is helping mobile customers realize greater levels of self-expression and online community participation.
According to principal analyst Dan Shey of ABI Research, “Mobile video messaging is perfectly positioned to take advantage of the convergence of increased mobile device capabilities and consumers’ desire for broader communication options beyond voice. In fact, we expect the opportunity for mobile video services to produce a compound annual growth rate of nearly 60%, amounting to $10 billion in 2012.”
But mobile video messaging is just part of a much bigger portfolio of mobile video services that includes video calling, video sharing, and mobile TV services. The complexity of the mobile video value chain affects mobile equipment and service suppliers not only in industrialized countries but also in developing regions of the world.
Given such complex conditions, ABI Research has created forecasts for uptake of mobile video messaging and telephony services for eight regions of the world: North America, Western Europe, Asia Pacific-Developed, Eastern Europe, Latin America, Asia Pacific-Developing, Middle East, and Africa.
The industrialized parts of the world with the highest concentration of advanced video devices will see the greatest uptake of mobile video services. However, don’t discount the developing regions. Says Shey, “Social networking sites such as Orkut are very popular outside of the US and Europe. Mobile video messaging will facilitate mobile content delivery using a growing base of video recorder devices and established 2.5G networks.” [ABI Research]
Global Mobile TV and Video Get Real
Will we all tune into our phones at the same time?
Infonetics Research's "Mobile Video Devices, Services, and Subscribers" report published May 9, 2007 found that revenue from mobile video is set to increase.
The firm estimated that service provider revenue from mobile video services is expected to triple to nearly $ 200 million worldwide in 2007, after already growing 317% from 2005-2006.
The number of paying subscribers worldwide for 2010 was projected by Infonetics to reach 46 million.
Mobile video involves shuttling video content from a server to an individual handset on demand. Mobile TV works more like broadcast television, with TV tuners embedded in mobile phones.
A separate study by Screen Digest focusing on mobile TV estimated that associated revenues for that technology would reach Eur4.7 billion, based on 140 million subscribers worldwide in 2011.
David MacQueen of Screen Digest said that there are good reasons why carriers will focus on mobile TV over the next several years.
"Regulatory and competitive pressures have pushed down the average consumer spend on voice and messaging," said Mr. MacQueen. "Mobile operators must now look to new content offerings to deliver the business growth they've enjoyed over the past decade."
Read more
Young Men Dominate Mobile TV Use
According to data from Telephia, US mobile video subscribership reached 6.2 million in the fourth quarter of 2006.
That figure is up 145% from the first quarter of 2006. The firm estimates that revenues from mobile video subscriptions totaled $148 million in Q4 2006, up 188% from the start of the year.
Mobile TV viewers are overwhelmingly male. In fact, 70% of video mobile subscribers are men, although they actually make up less than half of all mobile subscribers.
Mobile video also attracts young users, with 62% of mobile video subscribers between the ages of 18 and 36. That age group represents only a third of all mobile subscribers.
Mobile TV is growing worldwide. "People are spending money to get entertainment on the move," said Graeme Oxby of 3, a mobile video company, speaking at the Broadcast Mobile TV Congress in London. "Mobile TV provides broadcasters with opportunities to do new things that they might find difficult on a normal broadcast platform."
Mr. Oxby also said the keys to continued growth of mobile TV were simpler pricing, easier-to-use services and more made-for-mobile content.
Read more
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