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It used to be text. Then it was games and ringtones. Currently mobile music is flavour of the month in mobile land. But, while many in the industry think that 2005 will be about tunes, those in the know understand that this is small beer — what 2005 really signifies for mobile is streaming video content. The networks are there — let’s face it, you can do it over 2.5G to a good Java player, as well as 3G — the billing is there (well, sort of) and drive to really make money is also present. All that is lacking is whether the punters want it or not. The idea of sending video to phones is nothing new. The idea of video calling between people has been around for years. In the 1980s BT tried to launch a fixed line video calling system. It failed. Talk of peer-to-peer mobile video calling has been drifting around since the 1990s. Again, whether it is a compelling consumer service or not is a moot point. But it really doesn’t matter. Culturally and technologically we have moved on; now what we are really talking about is mobile TV — streaming TV-style programming to mobile devices. From news and sports highlights, to whole programmes and soap operas, the mobile video sector is poised to be huge, simply because it has such wide appeal — it should, if played correctly, transcend age, class and cultural barriers, much as cable and satellite TV does in the home TV market. And lifting premium mobile services out of the realm of being kids’ stuff is essential to fully realising mobile’s potential.
Programme content will, of course, be key to the success of mobile TV and video services. Should mobile TV simply replicate fixed services, accommodating the expected delay, while legal matters are resolved, or use the medium to deliver a new style of content that reflects the interests of the prime 15 to 25 mobile population, or should it go beyond this? Mobile TV has the potential to deliver new, revolutionary content that will extend the entertainment concept, rather than extending the ways in which we can view traditional TV. Indeed, if content providers embrace the opportunities mobile TV delivers, the long-term implications for traditional TV programming will be significant, as consumer demands shift and evolve.
So what can content providers offer the consumer today? At a basic level, using existing Java enabled phones, users can download video clips up to 30 seconds long. Far more interesting for content providers and users is the use of streaming technology. Using a player — technology that is increasingly bundled with new phones — users can access large numbers of TV ‘channels’. Critical for content providers is the use of middleware that ensures programmes are player independent, since no one player has yet attained market domination. With this in place, content providers can leverage the robust billing engines used by mobile operators to deliver a raft of programmes to the customer base. Mobile TV gives content providers, media organisations and marketing companies access to a new communication channel. As a first step, organisations can leverage existing Internet content — from webcams to weather watch — delivering it, for profit, via the mobile network. Using the strong mobile billing solutions, content providers can offer users a range of TV channels and access to archived material. As with traditional broadcasts, content will be delivered to a pre-defined schedule and users will simply scroll around content to find the right channel.
Getting the pricing right will be important. In addition to a small up front registration fee, most providers should offer a mix of free and paid for content to build up audience momentum. One important factor for content providers is that mobile technology addresses the pressing issue of Digital Rights Management (DRM). Ensuring that content can be viewed once only and not replicated for unauthorised distribution is a major concern, particularly for those providing music channels. Using mobile TV the content is downloaded and viewed once. It cannot be duplicated. No Simpsons or Eastenders
But if users are unable to view the latest episode of the Simpsons or Eastenders on a handset in the very near future, what will they be watching; indeed, will they be watching at all?
Initially, mobile TV will, undoubtedly, create a cult audience. One Australian company has already committed to the medium for its numerous webcams; while another company is providing a music channel for unsigned artists. It will, however, be essential to create some cult TV viewing, particularly to appeal to the core 15 to 25 audience. And that means extending the reality TV concept. Innovative webcams and home made soap operas can be transferred directly from the Internet. Interest in these programmes should generate both revenue and propagate the concept, encouraging more content providers to deliver ‘more real than reality TV’ programmes — all within the appropriate bounds of decency.
With the right cost model that combines free to air with paid for channels, content providers have a low cost route to a huge untapped market. The 15 to 25 bracket is already leading the way in buying ring tones, graphics and games via the mobile and is entirely comfortable with the use of the mobile as an entertainment device. If the early content providers get the mix of price and programming right, it will be only a matter of time before owners of prime time TV content look to get into the market.
But, while all this looks good on paper, there are potential problems with mobile TV services that have to be addressed before this utopian view can be realized. Is today’s mobile generation now ready for sitcoms on the run? Indeed, will today’s terrestrial TV channels transfer to the mobile device? The technology is undoubtedly viable on modern phones, but content owners will have some serious negotiations to undertake to address licensing complexities.
Mobile TV hype is not justified by the risk, believes Strategy Analytics in a study, arguing that the vendor-led rush to bring broadcast services to market misses the critical issues of uncertain demand for mobile TV. Additionally, poorly defined costs associated with infrastructure deployment will extend ROI for mobile broadcast networks beyond the currently envisaged two to four years.
David Kerr, VP, Strategy Analytics Global Wireless Practice, warns that “Beyond the basic business case and potential cannibalisation factors, mobile TV faces four key challenges: The technology roadmap is far from stable; regulation and low spectrum availability may also act to slow the spread of services; beyond the technophile segment there is slow diffusion of media-enabled devices; and uncertain revenue models and value chain reconciliation will deter content industry participation.” Is this TV?
And the question remains: is all this TV or simply an extension of the Internet to the mobile phone, using video instead of stills? Certainly, in its current incarnation it is not broadband television, but replicating traditional TV is not the role the mobile should play — such an approach undermines the mobile device’s potential.
Mobile video streaming is not about simply replicating traditional TV content, rather this development marks the beginning of the mobile phone becoming the device of choice for a range of voice and data based activities that will continue to transform the way in which we interact with people, information and entertainment services and that will have a significant affect on traditional TV broadcast content.
The mobile phone will become the primary interaction and entertainment device for the next decade if the service providers get it right. Author:
Graham Baines is managing director of Fonedream
Information:
w: www.fonedream.com
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