The Cable & Satellite Broadcasting Association of Asia (CSBAA) has released a “Mobile TV” report developed by a research group, Tomorrow, that lists ten keys to the success of mobile television, says the association's press release. The key are:
1. The network
2. Ease of use
3. The ecosystem
4. Devices
5. Coverage
6. Revenue
7. Regulation
8. Content
9. Advertising
10. Lifestyle
I couldn’t find the entire report online, but thanks to an entry by IntoMobile, I found an article by Adoi Magazine that discusses in detail those ten points. The report seems to hit many of the major issues surrounding mobile TV. I wish I could read the entire report.
Network, ease of use, ecosystem
“The network” involves the necessity for providing sufficient bandwidth to enable subscribers to view video without the system crashing.
“Ease of use” is pretty much self-explanatory. The article says, “Video that is hidden deep within pages of menus, requiring multiple clicks to access is not a compelling content experience.”
“The ecosystem” means also the players — network operators, content providers, handset manufacturers, etc. — must work together to create a robust business.
“Apple combined attractively designed music and telecommunications devices (iPod/iPhone), with consistent middleware to allow users to manage their content assets (iTunes), with a universal delivery platform (Internet), and finally a large selection of well priced music and video content (negotiated deals with music labels and TV studios),” the article says.
Devices, revenue
“Devices” entail developing handsets that are easy to use, offer good battery life and are reasonably priced. “Coverage” can make the difference for, as an example, a subscription-based service that offers mobile TV in train tunnels compared to a free service that does not.
“Revenue” generation is a complicated issue that includes flat rate pricing, that can be a problem for cellular operators who don’t have a mindset for this type of payment. It’s also a problem for operators who have a significant number of prepaid customers and who have to modify their billing software.
In Malaysia, the subscription television company Astro All Asia Networks “discovered the problems that entails if the average top up is 15R, and your service costs 20R [Ringgit]. They devised an alternative billing strategy to avoid defaults. Astro’s solution was to implement ‘bill chunking’, which levies 5R every week for 4 weeks rather than a single lump sum,” the article says.
Regulation, advertising
“Regulation” involves not only making spectrum available for mobile TV but also developing rules for using the spectrum, such as whether the service should be paid or free, whether advertising may be incorporated, etc. “Uncertainties about mobile broadcast licenses in the Philippines, and content provision in China are examples of factors that can slow the development of Mobile TV services.
“The commercial viability of the free T-DMB service in Korea, despite its advanced device and delivery platform, is also restricted by regulations on the placement of advertising,” Adoi Magazine writes.
“Advertising” is a “sleeping giant” that’s still very much in the early stages. One problem is obtaining sufficient numbers of subscribers to make it attractive to advertisers. George Schmidt, the CEO of Google, has said cellular ads should be twice as valuable as non-mobile ads.
Lifestyle
“Lifestyle” entails a mix of culture and geography. For example, a city with skyscrapers can be difficult to cover with mobile TV signals, while a flat area with low buildings is much easier for radio waves to penetrate. Also, some cultures spend a great deal of time using mass transportation while others use automobiles.
“Every city has a context — a pattern grid of existing media consumption and usage. Understanding this provides insight into how quickly new services like Mobile TV will become embedded into the fabric of everyday life,” the article says.
The Internet wild card
The Internet is a “wild card” in the equation, especially as Asians born in the 1990s spend a huge amount of time on the Internet. “In their world, there is no piece of content not easily available to them — anytime, anywhere or on any device they choose.
“This new generation is unlikely to approach mobile TV with the same mindset as us. Media is a fluid concept for them. They talk about it, share it, and use it to represent who they are.”
The report has a four-minute video that summarizes the points.