2008 has seen a distinctive change in the adoption and attitude of consuming digital content on a mobile phone. QuickPlay takes a look at what the future holds for mobile TV.
Nielson Online revealed recently that mobile internet growth is now eight times greater than that of traditional broadband, seeing an increase of 25% from Q2 to Q3 this year. Specifically for mobile TV, within the last month Informa Telecoms & Media has predicted that the market will be worth $10bn by 2013.
To back this up, One, the French mobile TV provider, surpassed its 10,000 subscriber target to reach 12,000 subscriptions in November and MySpace has just launched a free video service to mobile phones, to be supported by advertising – a clear indication that mobile TV uptake is on the increase.
This, therefore, begs the question; what is in store for 2009? Is next year going to be the year of mobile TV? QuickPlay Media certainly see 2009 as a year of further growth, despite the recession.
However, the market is still a way off wide spread adoption. Changes in the mindset of the operator and consumer will have to take place for it to be an everyday activity.
· Broadcast + VoD needs to unite under an inclusive offering that leverages the benefits of each format while catering to the unique preferences of every customer. Simplifying and enhancing the proposition for consumers will fuel operator revenues
· Premium content is going to be the next ‘big thing’ in content downloads on mobile and will generate more revenues than ad supported content. A number of services have already been rolled out including Nokia's Capsule 96 and Sky Mobile, which is available on a range of networks
· Content owners need to be realistic about what they charge for. Consumer adoption has so far been driven by free-to-air mobile TV
· Long-form content will see accelerated growth in 2009, as the growing adoption of media-friendly devices and faster networks allows consumers to view an episode of their favorite TV show anywhere, any time. YouTube partnered with CBS this October to offer users long-form content including Star Trek and 90210
· Technologist v Consumerist – operators need to address both user groups:
o -Technologist’s make positive use of the network, demanding the right signal to support premium content
o -Consumerists want mobile video specifically for social peer-to-peer networking. This is more about presence than technology
· 3G to 4G - Evolution of networks from 3G to 4G will improve network capabilities and bandwidth, improving user experience. Qualcomm and Ericson expect to deploy commercially available chipsets and LTE-equipped devices by 2010, as operators see substantial increase in mobile data revenues
· Consumer education for the UK market on the services and content available is still required to drive growth in 2009
Content owners and operators will not automatically achieve high revenue from mobile TV without addressing the challenges currently stalling wide spread consumer adoption.
Consumers expect a high quality viewing experience and a wide range of choice at a reasonable price point. By investing in a fast and flexible way to manage, distribute and monetise mobile TV/video, mobile operators and media companies can deliver the high quality and personalised service consumers demand.
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