Reiter's Mobile TV Report

Telephia reports dramatic increases in mobile TV growth; recall of ads

"After another quarter of impressive subscriber growth, mobile video is rapidly becoming a significant new media distribution platform," according to Telephia.  The wireless communications research firm reports not just a dramatic percentage increase in viewers but also receptivity to watching commercials.

Telephia says that from the first quarter of 2006 to the first quarter of 2007 in the United States, mobile video revenues grew 198 percent, the number of subscribers great 155 percent and the penetration rate as a proportion of total cellular users increased more than 200 percent (see below).

Kanishka Agarwal, the vice president of mobile media of Telephia, says in the company's press release, "Within a very short time, the number of mobile video subscribers has grown to over 8 million, comparable with the average audience size for an episode of 'The Sopranos' this season."

Advertising recall

In a related finding, Telephia reports that cellular subscribers who view videos have a much greater recall of advertisements than data subscribers in general (see below).

The company says, "Video consumers had the highest recall of viewing ads on their phones as compared to all data service consumers, with 55 percent saying they recalled viewing a mobile ad in the last 30 days.

"This is nearly three times the recall rate for mobile data consumers in general. Even more promising, forty-one percent of mobile video consumers recently responded in some way to an ad, an encouraging sign for advertisers."

Acceptance

I've always contended that cellular subscribers would accept commercials for mobile video/mobile television, assuming the commercials aren't too long in relation to the length of the video or TV program. 

Of course, subscribers to mobile TV services, such as the MobiTV channels offered by Sprint and AT&T (Cingular), already view commercials when they watch the live streaming programs of, for example, MSNBC and Bloomberg.

European Union leans towards adopting Nokia's DVH-H mobile TV standard

The European Union (EU) is leaning towards accepting Nokia's DVB-H mobile television standard according to a draft document, The Wall Street Journal says.  The EU's European Commission says Nokia's proposal is the "strongest contender" compared to Qualcomm's MediaFLO and T-DMB.

If approved, EU member countries "will be required to encourage the use of DVB-H for the provision of terrestrial mobile-television services," according to the document reported in the WSJ. 

T-DMB is the standard in South Korea that had lobbied heavily for it.  But odds against the EU selecting a South Korean-promoted protocol for Europe are astronomical.  (The WSJ didn't say that!)

Shocked!  Shocked!

However, if you follow the mobile TV environment you know that based on the history of DVB-H -- including European countries' investment in the protocol as well as their antipathy towards Qualcomm in general -- it would be shocking if DVB-H wasn't endorsed as the European standard.

Viviane Reding, the EC Commissioner for information society and media (see left) has previously told the European mobile community that unless they selected a single mobile TV standard the EC would select one for them, the article notes.  Reding has said she prefers DVB-H because it is a European technology that has been funded in part by the EU.

The Wall Street Journal says the EU has spent some 40 million euros ($53,850,000 -- boy oh boy is the euro high against the dollar, sigh!) funding DVB-H.

Disingenuous?

According to the WSJ, the EU says DVB-H is "used in most countries," T-DMB isn't common and MediaFLO is a "proprietary solution" that is at the start of the testing stage. 

Granted, DVH-H is used in a few commercial European systems and I haven't seen the draft document.  But characterizing MediaFLO as in the start of the testing phase -- when Verizon Wireless has been offering it commercially for months -- might be somewhat disingenuous.

Malaysian pay TV company to offer DVB-H mobile TV with Nokia in 2007

MiTV Corporation Sdn Bhd, one of Malaysia's pay television services, will launch DVB-H mobile television service with Nokia Siemens during the second half of 2007, according to a report in SDA Asia.

Nokia's DVB-H cellular phone, the N77, will be used for the service.

New York Times discusses Hollywood's interest in Apple iPhone

Could the Apple iPhone help break the walled prison garden stranglehold cellular operators have on wireless content -- specifically videos?  That's one of the ideas discussed in The New York Times' article today about how Hollywood wants to get a piece of the content action on the iPhone.

As the Times notes, "in Hollywood, where Mr. Jobs’s convention-defying tactics are all too familiar, media executives are eagerly preparing for a new era as they hope to position more content where consumers want it: in their hands."

The first-generation iPhone employs AT&T's (aka Cingular) slower GSM EDGE data protocol rather than its significantly faster HSDPA protocol.  However, the handset also incorporates WiFi.

Bypassing cellular operators

As the article says, "Industry executives predict that as it becomes easier to get information via Wi-Fi networks, more consumers will bypass traditional wireless networks altogether.  That prospect, while helpful for phone makers and media concerns, is frightening for service providers if consumers begin to regard them as irrelevant."

I wrote in a recent article discussing the iPhone and mobile television that for over-the-air mobile TV, the iPhone was a dud because it won't offer any AT&T mobile TV services -- at least at the outset.  However, I also wrote that if you consider "mobile" to be "portable" as well as "wireless," the iPhone would be a multimedia powerhouse.

The reason:  Sideloading -- downloading content via iTunes to a computer and then via a cable to the iPhone (see above).  No cellular operator in the United States offers the breadth of content as iTunes, including a variety of video products -- video blogs, animations, music videos, complete TV programs and full length movies, as I wrote more than five months ago.

This could make it (1) very easy for people to get videos to the iPhone (2) relatively quickly if they have a broadband connection for their computer to download iTunes content.

Breaking down walled prisons

As a result, Apple doesn't need -- and the subscriber doesn't need -- to use a cellular operator to download lots of content.  Of course for live streaming you still need a wireless connection, but that could be WiFi rather than EDGE.  Granted, EDGE is so much more prevalent and, therefore, more convenient than trying to find a WiFi hotspot.

John Smelzer, the general manager of mobile operations for Fox Interactive Media, says in the article that videos in particular have been placed "behind a wall."  Smelzer says, "It’s the antithesis of what’s happening on the Web.

"Any device that replicates the experience online is good for the entire industry.  It will help us reach a mass audience."

A better viewing experience

Also, the iPhone's relatively large (3.5-inch), relatively high resolution (320 x 480 pixels) screen with "optical-quality glass" results in a great viewing experience (for a cellular phone).

"Filmmakers are not going to be happy having their films downloaded to cellphones with poor quality," says Christine Peters who produced "How to Lose a Guy in 10 Days" and has been named to the board of Xero Mobile.  "That's the beauty of the iPhone.

"It's simple and it looks good.  Half the people who have these fancy cellphones don’t know how to use them."

Red Herring issues mobile TV report about market drivers, investment opportunities

Thanks to a tip from my technology consultant friend Jim Opfer of Launch Power I see that Red Herring has just issued a 110-page $2,900 research report about market drivers and investment opportunities in mobile television (see left).  "The primary drivers for the widespread adoption of mobile TV include the strong demand for existing TV content, the creation and availability of customized mobile content, interactive services and programming, new (fashionable) mobile TV devices, and the increasing global mobile phone penetration," Red Herring's Web site says.

Chris Bonnet, the managing director for Red Herring Research, says in the press release, "Mobile operators have identified it [mobile TV] as the most important area for investment over the next three to five years...."

I don't know if that's true, but if it is a lot of money is going to be thrown at mobile TV!

Placeshifting as disruptor

Red Herring says:

"In-Stat, a market research firm, projects there will be 102 million mobile TV broadcast subscribers worldwide by the end of 2010, up from 3.4 million in 2006, with much of the growth coming from India, China, Africa and Latin America.  Datamonitor, a market research firm, predicted there were approximately 4.4 million mobile broadcast TV subscribers at the end of 2006, expected to grow to 155.6 million by 2012.

"As a potential thorn in the sides of mobile carriers, placeshifting companies allow users to access their home TV through a mobile device from anywhere in the world, without incurring a monthly fee.

"The disruptive nature of placeshifting has the potential to follow closely on the heels of the disruptive impact on the music industry initiated by the introduction of the Apple IPOD, Napster, and other Internet music download sites.  ABI, a market research firm, expects the placeshifting market will grow from under $22 million in 2006 to $740 million by 2011.

"As the technology is in its infancy it is experiencing growing pains, and legal issues arise from the copyright usage of re-broadcasting material.  This has put large players in a bit of a quandary, as initial versions of this technology adapt to the legal framework.

"For wireless operators, placeshifting has a risk of disrupting their mobile TV content services business."

Reuters reports Asia as number one market for mobile TV although problems remain

Asia is expected to be the place for mobile television implementation, although wireless executives still ponder writing large checks to develop the service, according to a Reuters article.

As part of its reporting at BroadcastAsia in Singapore, Reuters says "Asia is set to overtake Europe's early lead in adopting mobile television broadcasting as Europe struggles to find available airwaves for broadcasts...."  Peter MacAvock, the executive director of the digital TV and data trade organization DVB Project, says in the article, "The appetite for mobile phone based content is higher here than anywhere else."

Reuters notes that cellular operators hope subscribers will pony up five euros - ten euros ($7 - $13) per month for mobile TV.  However, the article says mobile TV develop is being hindered by different standards and business models.

MacAvock says, "Everybody thinks mobile TV is a great idea, but when it's time to get out the cheque book everyone starts to look at each other."

Issues of standards

Chris Lee, the head of marketing for Asia Pacific for Sony Ericsson says, "That standard issue needs to sort itself out first."  Reuters notes that DVB-H is the popular mobile TV protocol internationally.  It says other standards are promoted in other countries.

Of course, Qualcomm is promoting its MediFLO protocol that already is being used by Verizon Wireless for its V Cast Mobile TV service in a few dozen cities in the United States.  AT&T (aka Cingular) is expected to offer MediaFLO in the U.S. by the end of this year.

Three European countries offer mobile TV and because the availability of spectrum isn't a problem in Asia, according to Reuters, commercial DVB-H systems have begun in India and Vietnam with networks in Malaysia, the Philippines and Indonesia slated to offer service this year.

"Mobi-lize" Web site, newsletter focuses on mobile TV/mobile video

"Mobi-lize" -- a new Web site and free newsletter that focuses on mobile television and mobile videos (see above) -- has just soft-launched.  The inaugural edition of the Mobi-lize newsletter is slated to be e-mailed next week to a rather large number of potential readers.

I'm helping a bit to develop the product as well as write a few articles every month.  It looks like my article about iPhone's role in mobile TV and mobile videos on the home page is given a big play and I have been named the "hand set guru."

The conclusion of my article:

"For over-the-air live, streaming news broadcasts, sporting events and other TV programs, forget the iPhone for now.  These services would require HSDPA in any case.

"But as a mobile repository for a cornucopia of sideloaded multimedia content, the iPhone looks like a winner — assuming it performs as well and reliably as advertised!

Indeed, if large numbers of users are willing to carry (and pay for) a cellular phone with a large, relatively high-resolution screen, the iPhone could help revolutionize the cellular multimedia and Internet experience as handset manufacturers rush to introduce similar products."

Excellent articles

There are five other articles (that I had nothing to do with) and they really provide a lot of great information, such as broadcasters struggling over a variety of mobile TV platform choices (current and future), advertising on mobile TV programs and Actimagine's video codec and business plans.  In addition, the site includes mobile TV/mobile video-related videos, such as "mobile bootcamp" at iHollywood and a "fun little movie."

The editorial staff comprises wireless and broadcasting experts, and that's a major differentiator for writing good articles.  The company launching Mobi-lize, Access Intelligence (AI), publishes a wide variety of trade industry newsletters as well as offering numerous research reports.  (Those of you who are long-time wireless watchers might remember that A.I. sprung from Phillips Publishing that published numerous well known newsletters.)

A.I. has a lot of experience in broadcast publications.  The company's cable and studio groups are responsible for Mobi-lize.  Check out, for example, "Cable360.net" (see below) and "studiodaily.com."

A.I. also publishes telecommunications publications, reports and weblogs (that require registration -- a big boo for that) that may be viewed at TelecomWeb.

What do you think?

So, what do think of Mobi-lize?  What should be covered in the wireless TV/video space?  Drop me a line/comment.