Originally Published: January 2009
At the beginning of every year trend reports are released forecasting the year ahead. A frequent member of this list has been mobile TV. Again and again its rise and uptake by the middle market has been prophesized. Yet, at the beginning of the following year it appears back on a forecasting trend report ready for another try. Well this year looks to be the year to end this cycle. Mobile TV may finally become a viable option for the middle market (in the US, at least). So what changed?
Mobile TV became a collective goal.
At the International Consumer Electronics Show which ended last week in Las Vegas a group of American broadcasters announced that they would start broadcasting direct to cell phones. Among these content providers are major broadcasters like ABC, Fox, NBC and CBS. These companies have been joined by handset manufacturers: LG, Samsung, Zenith and Kenwood. All of whom are currently developing mobile receivers to pick up transmission from the stations. Rumor has it that AT&T is currently looking at selling the phones on their network. This initiative is due to launch at the end of this year in 22 cities across the US.
So, why will this work?
This will work because it is using the same business model as traditional free-to-air. The ad-supported business model is one most consumers understand. If they watch TV they live with it everyday. By simply mobilising TV directly the consumer can easily get their head around its use. The lure of it being apparently free (with advertising) will overcome one of mobile TV’s biggest obstacles in the past – cost. One of the biggest draw backs of content is the ‘unknown’ fee associated with viewing. Telco’s have tried to overcome this problem through snacking (Optus) or the leveraging internal assets (Telstra and free limited Bigpond/ Foxtel content). Yet, there are limitations to both these offers namely restricted access.
Mobilising the ad-supported model is the key to mobile TV’s success. It would be a win for the consumer who will not have to pay-to-view and for telco’s who can use it as an additional revenue stream through handsets or advertising. Hopefully, this year will move Mobile TV to the mainstream in the US and shortly to follow Australia.
