Mobile Television: The Emergence of a Personal-Mass Media Platform
Sylvia Chan-OlmstedProfessor and Associate Dean for Research
Department of Telecommunication
College of Journalism and Communication
An Emerging Main Stream Medium – everyone has it!
76.5%
82.6% 88.3%
92.7%
95.5%
60.00%
70.00%
80.00%
90.00%
100.00%
2006 2007 2008 2009 2010
Year
U.S.
Mob
ile P
hone
Pen
etra
tion
(% o
f U.S
. Pop
ulat
ion)
HK: 130%
Cable TV: 70%Broadband
Internet: 53%
An Emerging Main Stream Medium – not just a telephone!
Communication + Interacting with the phone
Some U.S. Mobile Consumption Facts
• Browsing news/information on mobile Internet is also a popular mobile activity.
• Yahoo sites (email, IM, search, news, directory, weather, etc.) are most popular in mobile usage (14.1 million), followed by Google sites (8.2 million)
• Top three mobile news sites are CNN/cnn.com, Yahoo, and ESPN Sports News.
The importance of familiar
media content and
brands
I want my mobile phone…
SMSMMS
IM
Broadband InternetEmail
TelevisionHigh quality
audio
BankingBill payment
Shopping
GamingGPS
Traditional media on a new platform
Presentation Outline
• Background Information– Continuous demand for TV consumption– Mobile Development Worldwide
• The Characteristics of Mobile TV• Mobile TV Technology• Characteristics of Mobile TV Consumers• Mobile TV Consumption Patterns and Drivers• Mobile TV Content Issues• Mobile TV Regulatory Issues• Mobile TV Business Considerations
Television vs. Mobile Television – Traditional TV Overview
• TV continues to be an important medium for the Americans– 8 hours 11 minutes per day for an household– 4 hours 31 minutes per day for an adult male– 5 hours 17 minutes per day for an adult female– 3 hours 19 minutes per day for teens/children
• Access to multiple TV sets on the rise– 82.5% of households have multiple TV sets– 3.17 sets per household
The Worldwide Growth of a New Content Delivery Platform
• Americans began to receive broadcast TV on mobile phones in early 2007
• Vodafone Germany delivered Tour De France live in 2006
• TU Media Korea has multiple mobile TV services since 2005. One in seven Koreans watch TV on their mobile phones.
• 44 million mobile TV users globally by the end of 2005– Asia takes the lead (70% in Asia)
• Europe and North America are expected to grow substantially
Mobile TV Viewers Worldwide
VAS Research Series 2007
Television vs. Mobile Television – The Nature of Mobile TV
• Conceptual Mobile TV = Mobile phone + TV + Internet• Conceptual Mobile TV = TV with Mobility and Interactivity
Mobile TV in the Context of TV Evolution
Fixed-Line Digital High Definition Television
CableSatellite
Broadband (IPTV)
Mobile TelevisionPoint-to-Point (3G Cellular
networks)Broadcast (DMB, DVB-H,
and MediaFLO)
Traditional Over-the-air Broadcast Television
Multi-channel Analog TelevisionSatellite
Cable
Continuous, Complementary
Viewing Experience
The Characteristics of Mobile TV
Fixed-line Television
BroadbandInternet
Fixed-line Telephone
Mobile Telephone Mobile Television
MobilityImmediacy
Emotional attachmentPersonalization
InteractivityPrivacyIntimacy
Interpersonal communication
InteractivityPersonalization
ControlCommunityInformation
Content multiplicity
Content multiplicityBoredom relief
InformationEntertainment
More passive consumption
Mobile TV Development Issue I: Technology
• Choice of Mobile TV platform is influenced by cost, regulation, and applications planned.
3G High-Capacity Cellular Networks
Dedicated Broadcast Networks (S-DMB/T-DMB, DVB-H, MediaFLO)
Typology One-to-one One-to-many
Cost High Low
Quality Variable High
Mobility Medium High
Power Medium Medium
Advantages Variety, currently in place, on-demand
Cost structure (no incremental cost to serve more subs), performance
Disadvantages Price, performance, low RPM(streaming 1 video channel = 75 voice calls)
Variety, additional network and handsets needed
Mobile TV Development Issue II: Consumer
Who are the mobile TV users?• Early adopter profile• Young males (65% male, 64% ages 20-30 in
Korea)• Urban mobile customers (82% in urban areas
in Korea)• Ethnically diverse in the U.S.• Young adults who like texting, streaming,
podcasting, and other technologies• Prior multimedia experience (esp. for mobile
video), equipment, and age influence receptivity of mobile TV
Telephia Mobile Video Diary Report 2006
U.S. Mobile TV Consumers
11
23 24
50
39
24 26
30
10
20
30
40
50
18-24 25-36 37-55 56+
Age Group
Mobile Subscribers Mobile Video Users
47
70
53
30
0
10
20
3040
50
60
70
Male Female
Gender
Mobile Subscribers Mobile Video Users
74
42
1116 11
27
415
01020304050607080
Race/Ethnicity
Mobile TV users are ethnically
diverseNot just for the
very young; over half are In the age
group 18-36
Skewedtowardmale
Mobile TV Development Issue II: Consumption Patterns
• Mobile TV was most used during commutes, waiting situations, and work/school breaks.– In the United States: Home (22%), commuting (22%),
shopping (16%), and work (14%)
• Mobile TV prime time is between noon and 8 pm and during weekdays.
• Mobile TV consumption time is increasing from short 5 minute snacking to up to 30 minutes.
• Gradual increase of consumption time and number of locations (increasing home access)
U.S. Mobile TV Usage by Daypart
Daypart Percent (%)
6 am – 9 am 9%
9 am – noon 9%
Noon – 4 pm 30%
4 pm – 8 pm 31%
8 pm – 11 pm 9%
11 pm – 2 am 11%
2 am – 6 am 3%
Telephia Mobile Video Diary Report 2006
U.S. Mobile Video Usage
Small portion
of mobile Users;
Infrequentusage
Mobile TV Development Issue II: Consumption Patterns/Motivations
Motivations
• Flexibility, independence, and a sense of community
• Enhanced personal and intimate viewing experience
• Time and location-sensitive information
• Filling empty time
• Personal content creation
Mobile TV Development Issue II: Consumption Patterns/Motivations
Conditions for mobile television adoption• Affordable pricing• Good technical functionality• Simple and intuitive usability• High-quality pictures and sounds• Mobile device functions uncompromised
by TV applications• Suitable content for mobile viewing• “Brand” (familiarity) is important
during the initial stage of adoption.
U.S. Mobile Subscribers’ Key Motivators in Subscribing to Mobile TV Service
1. Cost of service (64%)
2. Available channels (52%)
3. Picture quality (49%)
4. Screen size (47%)
5. Channel reception (46%)
6. Sound quality (39%)
7. Ease of use (36%)
8. Security (21%)2007 ComScore Survey
Mobile TV Development Issue III: Content
Technology = enablerContent = driverContent Types• Repurposed Video (full-lengths and
recaps/previews/highlights)– On demand or scheduled rebroadcast
• Simulcast TV (Live broadcast)• User-generated video• Original made-for-mobile video• Familiarity is important as this stage so
repurposed content is preferred (the brand factor!)
Mobile TV Development Issue III: Content
Sample services:• US Verizon offers 8 channels (CBS, Comedy
Central, ESPN, Fox, MTV, NBC News, NBC Entertainment, and Nickelodeon); Vcast mobile video (streaming video clips).
• MobiTV on AT&T – 50+ channels (streaming video clips such as ABC News, Access Hollywood, TLC, Discovery, Animal Planet, etc.).
• Orange France – 51 channels; Orange UK – 16 channels; Vodafone Germany – 30 channels; Italy – 15 channels.
Mobile TV Development Issue III: Content
• Typical content genres are drama, soaps, news, sports, and reality programs
• Highly-rated dramas/soaps are popular in Korea• Reality mobile programs are popular in Europe• News, weather, children/cartoon, comedy, and
sports are popular in the US.• New mobile content considerations: no need for
details; use of a simple plot
U.S. On-Demand Mobile TV Usage
Short clips -Music, news,
Sports,Weather,Comedy,
Animations,Highlights
Mobile TV Channels Ranked by Share of Total Audience
Channel Total Audience
1. ABC News 40%
2. The Weather Channel 32%
3. Fox Sports 31%
4. ESPN 29%
5. Fox News 22%
6. NBC Mobile News 20%
7. Comedy Central 16%
8. Accuweather 15%
8. Discovery Kids 15%
10. Discovery Channel 13%
11. CNN 12%
11. E! 12%
Telephia Mobile TV Diary Report 2006
U.S. Mobile TV Content Preferences
• Consumers prefer to watch traditional-style mobile TV rather than modified or specialized content (i.e., full-length and general content)
• Consumers prefer local news, dramas, movies, and sitcoms.
2007 ComScore Survey
Mobile TV Development Issue III: Content
• Two mobile TV views: mobisodes (“24” and “Lost”) vs. mobile traditional TV (repurposing regular TV)
• Mobile TV production considerations: limited time length, plots, themes, props, and people
• Access to traditional broadcast content a critical key to mobile TV content development (cases in Korea and Italy)
• Incorporating user-generated content (H3G in Italy, YouTube and Vcast)
• From “m”obile company to “m”edia company (UK’s “3” mobile company)
Mobile TV Development Issues IV - Regulation
• How to regulate converging telephone/television industries?• Should mobile TV be regulated under the same framework
as traditional broadcast TV?• What about content rights of mobile contents? E.g.,
retransmitted broadcast signals (Is the broadcast right of a content product transferable disregard of the reception device)
• And the key question of today: the unbundling, open access of mobile platform – Google’s bid of the newly available radio frequencies– Verizon’s announcement to open its network
• Open access is likely to lead to more innovative applications
Mobile TV Development Issues V – Alliances and Marketing
Mobile Device Manufacturers
Television BroadcastersMedia Portal
Mobile Network Operators (Operator Portal)
Mobile Content Packagers/ Aggregators
MobileContent producers
MobileUsers
• Alliances are essential for emerging markets – especially with content producers (e.g., TIM & News Corp.; Vodafone & Mediaset)
• Marketing is important for affecting new consumption/behavior (brand recognition and familiarity); cross-promotion on multiple platforms
Mobile TV Development Issues V – Business Models
• Mobile has been more successful in establishing the receptivity toward consumers’ paying for content – ability to experiment with different business models.
• Often begin with short-term free trials• 3G network pricing models (event or sub based):
– Free content but charge by data packet rate (unsuitable for premium contents)
– Content charge only (RPM problem)– Content charge plus data-packet rate (confusing to consumer)– Fixed subscription fee (more for frequent, repeated access)– Bundled package pricing (strategic bundling value)
• People prefer packages rather than pay per view (not good for premium contents)
• Issues for the new broadcast platform:– Optimal pricing points for branded vs. unbranded and original vs.
repurposed content– Price a content that is free on other platforms
Mobile TV Development Issues V –Business Models
• Content providers need incentives (revenue-sharing) to develop/assemble content products.
• Revenue Sharing Models: – Upfront fixed-cost payment vs. revenue
sharing percentage to channel members– Japan’s DoCoMo keeps 12%; Italy’s H3G
keeps 85% of the revenues– Percentage to content providers influence
availability of good content products
Mobile TV Development Issues V –Business Models
• Mobile Advertising – targeted medium platform with mobility, personalization, and interactivity.
Ad Budget Shares of Emerging Media
Media % of Budget
Search 27.0%
Online video 14.9
Blogs 8.4
Podcasts 8.0
Social networking 7.7
RSS 5.5
Mobile 5.2
Video game 3.6AAF Nov. 2006
Mobile TV Development Issues V –Business Models
• Mobile Advertising Scenario:– SMS/MMS type ads– Multimedia placement ads with/without reduced
subscription rate for commercial breaks on mobile TV– Use product placement or sponsorship
• Challenges– Contextual targeting with personalized and relevant
content is critical– Lack of audience measurement data– Consumers have low tolerance of mobile TV
commercials – More than half of consumers are not willing to watch
ads on their phones in return for free mobile applications
Mobile Advertising Spending
2006 2007 2008 2009 2010
AD SPENDING IN MILLIONS
U.S. general mobile ad spending
$410 $878 $1,547 $2,285 $3,202
Growth Percentage (%) -- 114.15% 76.20% 47.71% 40.13%
U.S. mobile multimedia ad spending
$11 26 55 110 213
Growth Percentage (%) -- 136.36% 111.54% 100% 93.64%
E.g., SMS
E.g., placement ads
Overall Mobile Business Considerations
State of the Business• Messaging (text, multimedia and
instant messaging, and email) generates the largest revenue ($5.9 billion in 2007; projected to reach $15 billion in 2010).
• Entertainment and information contents generate similar levels of revenues now, but entertainment is expected to outpace information revenues.
• Package of mobile TV, high quality audio, and data services might be most attractive.
U.S. Mobile Phone Application Revenues
$0.00
$5.00
$10.00
$15.00
$20.00
$25.00
$30.00
$35.00
$40.00
2006 2007 2008 2009 2010
Year
U.S.
Mob
ile P
hone
Rev
enue
(in
bill
ions
)
Messaging
Entertainment
Information
Total
Mobile TV Development Issues V –Business Considerations
• Mobile TV is a long-term strategy.• It provides broadcasters opportunities
for personalization and targeting, not necessarily revenue potentials.
• It offers opportunities for recuperating 3G license fees (e.g., European operators).
• Its strategic value is in integrated services and triple- to quadruple-play competition
Mobile TV Development Issues V – Quadruple-Play Business Strategy
Fixed-Line Telephone
Mobile Telephone
Broadband Internet
Fixed-Line Television
Cox Communications and Comcast(VoIP, Cable Modem, and Cable Television
Cox Communications and Comcast(VoIP, Cable Modem, and Cable Television
Verizon and AT&T Cingular Voice Telephone, DSL, IPTV, and Mobile Phone
Verizon and AT&T Cingular Voice Telephone, DSL, IPTV, and Mobile Phone
MVNO (Sprint)Bidding on the new UHF mobile freq.
Conclusions• U.S. Mobile TV is in its infancy, worldwide mobile
development may serve as a reference point.• Mobile TV is a convergence between telephone and
television – There are fundamental differences in consumer expectations and behavior.
• Converging industries present challenging technological, business, and regulatory issues (e.g., changing consumer demand/usage patterns, product development, cross-platform, unbundling practices, and emerging, risky business models).
• Mobile TV = diverse needs + content familiarity• Mobile platform is a crucial part of the multilateral
competition between media/telecom firms.• Mobile TV is complementary to fixed TV and offers unique
marketing utilities for traditional media content.• The recent move toward open access means more
innovative applications so get ready for the ride.
