Mobile Media

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Mobile Media
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Mobile TV Viewing is Predicted to Grow Fast

• In first quarter of 2006, Telephia claims more
  than 2 million people paid a monthly fee to
  receive TV programs on their mobile phones, a 40
  increase from 4th quarter 2005.
• An additional 1 million downloaded video without
  a monthly subscription.
• Those who get mobile can see their typical phone
  bill rise from 54 to 94.
• Mobile video users are currently younger males, a
  hard to reach group that may be streaming sports
  video and scores.
• Colleges and universities are also taping
  lectures, which students can download. Students
  who initially use their mobile device for this
  purpose can then be expected to seek
  entertainment options as well.

Source spotsndots 5/30/06
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The Three Types of Mobile Video

• 1. Stored Mobility
• Apple iPod, other MP3 players
• Consumers download content to PC and transfer to
  player
• Content prices range from free to several dollars
• Sony PSP
• Consumers purchase cartridges of movies or
  programs
• Content limited, and priced at a premium to DVDs
• Portable DVD players
• Standalone devices, either handheld or installed
  in vehicles
• Accommodate standard DVDs.

Source Magna Global Report, Mobile Video and
Advertising A Global Overview April 2006
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The Three Types of Mobile Video

• 2. Integrated Mobile Video Service
• Mobile Phone Carriers, MobiTV
• Consumers access video clips on-demand, looped
  and live channels through carriers 2G and 3G
  networks on designated mobile handsets
• Currently, content is limited
• Consumers may pay per clip or may pay a flat
  monthly fee, depending on service.
• Modeo, MediaFLO
• Consumers access live channels from handsets with
  dedicated receivers
• Content may be free or ad-supported, or consumers
  may pay a monthly subscription fee

Source Magna Global Report, Mobile Video and
Advertising A Global Overview April 2006
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The Three Types of Mobile Video

• 3. Place- Shifting
• Sling Media, Orb Networks, Sony Location-Free TV
• Consumers can place-shift home entertainment
  systems to PCs anywhere in the world by streaming
  content from the home to a mobile device via a
  broadband connection
• Live programming from a cable or satellite
  system, or any content stored on the homes DVR
  can be place-shifted
• DirecTV 2Go, EchoStars PocketDIsh, TiVO To Go
• Enable consumers to transfer programs saved on
  home-based DVR to portable devices with video
  displays
• Content limited to saved programs only

Source Magna Global Report, Mobile Video and
Advertising A Global Overview April 2006
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Mobile Media Was a Key Theme of the 2006
Consumer Electronics Show (CES)

• The key theme of CES was portability, with
  showcases full of devices that enable consumers
  to capture and share content across multiple
  platforms in the home and on the road. Slingshot
  technologies that enable consumers to manage and
  view their TV hard drive from anywhere in the
  home and the work were ubiquitous at CES.

Jack Myers Media Business Report 1/10/06
Source Jack Myers Media Business Report,
1/10/2006
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Despite the hype, U.S. response to mobile data
services lags behind other countries

• Data service revenue in Europe, Japan and South
  Korea can generate up to 35 of total carriers
  revenue in the U.S., they generate between 3
  and 8.
• Carriers in the U.S. are upgrading their networks
  to high-speed broadband levels, which may help
  spark interest.

Source Nielsen, Mobile Entertainment
Furthering Mobile Capabilities Beyond
Communication, 9/26/05
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US Mobile Phone Use vs. Other Countries
Regularly use mobile phone ( of population)
Have a 3G phone ( of handsets in use)
Source Isobar/Yahoo! Fluid Lives Global
Study, released April 2006
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Roadblocks exist for expanded mobile use

• Technical set-up problems and confusing phone
  interfaces impede consumer adoption.
• Consumers feel mobile content still takes a long
  time to download.
• Even when downloads arent a problem, storage
  capacity is.
• Unreliable access continues to be a problem,
  especially for mobile TV applications.
• Internet access over mobile phones is still in
  its infancy.

Source Isobar/Yahoo! Fluid Lives Global
Study, released April 2006
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Predictions of US Mobile TV Subscribers,
2006-2009 (in millions)
Note eMarketer uses data from Informa Telecoms
Media as the baseline For total number of 3G
subscribers worldwide.
Source eMarketer, March 2006
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Use of Entertainment Features on Mobile Phones
is Still Limited
Source Isobar/Yahoo! Fluid Lives Global
Study, released April 2006
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Use of, and Interest in, Cell Phone Features by
Age
Source Pew Internet and American Life Project,
AP, and AOL, April 2006
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How Many U.S. Consumers View Live or Pre-Recorded
TV Programs on Their Mobile Phones?
According to eMarketer, the rise of the very
small screen will begin in 2006. Since wireless
companies are not sharing numbers, it is hard to
determine how many mobile TV subscribers there
will be. Based on available data, eMarketer
estimates that there were 1.2 million U.S.
consumers who viewed either live or pre-recorded
TV programs on mobile phones in 2005 (this figure
also includes downloads from a DVR). eMarketer
expects this figure to increase to 15 million by
2009.
U.S. Consumers Who Watch TV Programming on Their
Mobile Phone (in millions and as a percent of
mobile phone subscribers)
15.0 (6.2)
3.0 (1.4)
1.2 (0.6)
Includes live and pre-recorded programming as
well as downloads from a DVR.
Source eMarketer, December 2005
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eMarketers Estimates Are Similar to The Yankee
Groups Predictions

• In September 2005, Yankee Group claimed the
  number of subscribers to cellular TV and video
  services could reach 1.3 million in 2005, and
  grow to 10.8 million by 2008.
• Yankee Group also forecasts that revenue from
  cellular TV and video services will grow from 29
  million in 2004 to 1.4 billion in 2008.
• With 182 million wireless subscribers and 102
  billion industry revenue in 2004, it is clear
  that cellular TV and video services are in the
  very early stages of consumer adoption.

Source Asian Wall Street Journal, 9/12/05
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In-Stat/MDR is More Bullish

• In-Stat/MDR estimates the number of mobile TV
  subscribers could reach 1.1 million in 2005, and
  grow to 30 million by 2010.
• The company forecasts that revenue will grow from
  47 million in 2005 to 1.9 billion in 2008.

Source Nielsen, Mobile Entertainment
Furthering Mobile Capabilities Beyond
Communication, 9/26/05
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Retrieval of News and Information is Among Top
Growth Areas for Mobile Applications
Source MMetrics, mobile owners consumption of
content and application in July 2005
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Consumers Indicate a Strong Interest in Local
Information
While this survey specifically refers to local
news via text messaging, it is indicative of the
potential interest in live streaming of local
news.
Source Nielsen, Mobile Entertainment
Furthering Mobile Capabilities Beyond
Communication, 9/26/05
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How Many Americans Tune in to Podcasts?
Active Podcast Audience
Total Podcast Audience
Individuals who have downloaded a podcast.
Individuals who download an average of 1
podcasts/week.
Source eMarketer, 4/11/2006 release of 2/2006
survey
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Nets Continue to Offer Paid Mobile Content

• NBC plans to charge 1.99 for iTune downloads of
  Jay Lenos monologues and comedy sketches. A
  months worth of monologues can be purchased for
  9.99.
• ABC News is becoming the first network news
  division to offer iTunes downloads of news and
  documentary programs, also for 1.99 per
  download.
• Since October 2005, more than 6 million downloads
  of ABC offerings have occurred with Lost and
  Desperate Housewives topping the list.
• Fox has begun selling current and archived
  programs on iTunes for 1.99 per download.

Sources Online Media Daily 5/10/06, TVWeek.com
5/25/06, BC TVFax 6/7/06, Myers Media Business
Report 6/5/06
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ABCs Ad-Supported Venture

• ABC has been streaming four programs on
  www.abc.com.
• One advertiser is accepted per program, with
  stand-alone 30-second spots embedded in the body
  of the program.
• 85 of viewers remembered the advertisers in the
  programs they streamed.
• Per Iger Since there is only one commercial per
  break, viewers are not as compelled to skip it.

Source Myers Media Business Report 6/5/06
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Despite the proliferation of fee-based mobile
media services, executives at a recent Mobile
Entertainment Symposium expressed the belief that
ad-supported models will become more popular in
the coming years.
Source MediaPost Online Media Daily, 5/10/06
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we expect that advertising will ultimately play
an important role in the mobile video world. The
best opportunities to market to consumers in
mobile environments will be through integrated
mobile communications devices, and the industry
will likely require ad-support to reach the
widest possible audience.
Source Magna Global Report, Mobile Video and
Advertising A Global Overview April 2006
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customer surveys consistently show reticence on
the part of consumers to pay more than 5-10
extra per month for mobile data services in
general. With all the hype about 0.99 news
pieces, 1.99 episodes of broadcast television or
all-you-can-eat monthly subscriptions, the danger
of users receiving phone bills as thick as phone
books is very real.
Source John du Pre Gauntt, eMarketer Senior
Analyst, 3/23/06
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Many local broadcast stations are turning to
third parties for assistance in making mobile
content available to consumers.
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Local Solutions Network (LSN)

• Trademarked the brand name Local Wireless
• 100 stations delivering local content to wireless
  consumers LSN content is updated automatically
  when a stations website is updated.
• Nine of 10 ABC OO stations, plus Scripps,
  Landmark, McGraw Hill, Cox Television, and Gray
  Television.

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Local Solutions Network (LSN)

• Any internet-enabled phone or PDA can access LSN
  content, in one of three ways
• Via station website click on a link to access
  the mobile URL
• Via text messages sent directly to a cell phone
• Content is embedded on all Internet-enabled
  phones.

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Currently, LSN content is free to consumers

• Non-subscription, advertiser supported clips are
  what people will watch on phones, focused on
  relevant topical subjects like traffic updates,
  weather forecasts and animated radar, school
  closings, and sports scores. Users can set their
  local TV station as their wireless home page for
  news and can manage their content priorities.

Lee Durham, LSN Founder and CEO
Source Jack Myers Media Business Report,
1/10/2006
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LSNs Main Competitor News Over Wireless

• In contrast to LBS, News Over Wireless offers a
  subscription-based local news service.
• Created by CBC New Media, a division of the
  Capital Broadcasting Company.
• WRAL-TV in Raleigh-Durham was the first local TV
  station to offer local news, traffic and weather
  on mobile phones.
• An additional 24 stations now partner with News
  Over Wireless, to help translate content mainly
  newscasts to mobile phones. The 16 CBS OO
  Stations, as well as stations owned by Gannett,
  Meredith, Dispatch Broadcast Group, Jefferson
  Pilot Communications, and Allbritton
  Communications are clients.
• News Over Wireless can take custom or re-purposed
  content and automatically code it for mobile
  phones.
• Available to Sprint PCS Vision customers and
  Verizon Wireless customers (with Mobile web 2.0
  capable phones).
• Monthly fee of 4.95 allows unlimited access to
  an always on connection to a stations live
  broadcast.

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Establishing a Beachhead in Local TV

• Were trying to establish a beachhead for local
  video content. This is a big move for the
  industry. Its the next technological step,
  another product improvement for local TV.

Jimmy Goodmon, VP/General Manager, CBC New Media
Group
Source Mediaweek, 6/19/2006
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CBS Sees Opportunity to Repurpose Content

• This is a repurposed opportunity without putting
  much, if any, additional resources against it,
  said Jonathan Leess, President and GM for CBS
  Television Stations Digitam Media Group. Without
  any marketing, CBS is seeing a lot of interest.
  We have thousands subscribing without any
  mention anywhere, he added.

Source Mediaweek, 6/19/2006
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Striving to Get There First in the Local Arena

• Betting that interest will grow for local video
  content and that consumers will upgrade to
  state-of-the-art phones, CBS strategy is to be
  the first station in its markets with the
  service.
• Carriers have only limited menu space, and its
  not logical for them to have five local news
  providers, said Aaron Radin, VP of Business
  Development for CBS.

Source Mediaweek, 6/19/2006
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Mobile Media Players Plan New OfferingsGoTV
Network

• Delivers television programming direct to mobile
  phone handsets or wireless devices claims to
  reach 100,000 subscribers.
• Charges between 4 and 6 per month for
  individual channels to 10 per month for a
  variety of channels.
• Currently offering content from ABC, Univision,
  Fox Sports, as well as original programming
  produced specifically for mobile phones.
• Currently available on Sprint Nextel and Boost
  Mobile wireless networks.
• Delivery technology supports 2.5g and WiFi
  networks and the new 3g and WiMax networks.
• Currently includes network television shows and
  programs developed specifically for cellular
  devices.

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Mobile Media Players Plan New OfferingsSmartVide
o

• Offers live television with full-motion video to
  hand-held devices including cell phones and
  mobile PDAs.
• Viewers pay a monthly subscription feel and must
  have a media-enabled wireless device.
• Currently available on Microsoft Smartphones, and
  PDAs or Pocket PCs with Windows Mobile 2003 or
  better, and Symbian OS phones with Real Player
  other operating platforms are in development.
• Best when viewed via 2.5g and Edge cellular
  networks, and will play on future 3g networks.
• Currently includes network television shows and
  programs developed specifically for cellular
  devices claim that local affiliate programs are
  coming soon.

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In addition to announcements of wireless content
delivery options, several companies have recently
begun marketing portable, personal media devices.
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Mobile Media Players Plan New OfferingsThompson
s Lyra X3000

• Thompsons Lyra X3000 personal multimedia
  recorder weighs 8 ounces and is less than ½ inch
  thick and stores files directly to the device.
• The Lyra X3000 will enable users to record
  directly from a DVR or other device.
• In contrast, iPod users first have to download
  content to a computer before transferring to the
  iPod.

Source Broadcasting Cable, 1/9/06
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Mobile Media Players Plan New OfferingsThompson
s Plans for Over-the-Air Signals

• Thompson also introduced a small receiver that
  plugs into the USB port of a laptop and allows
  the user to watch and record over-the-air
  signals.

Source Broadcasting Cable, 1/9/06
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Mobile Media Players Plan New OfferingsSamsung

• Samsung introduced a flip-top DirecTV receiver
  with an integrated 10.2-inch LCD screen.
• The unit will sell for 499 and is designed to
  bring DirecTV to the kitchen or even the garage.

Source Broadcasting Cable, 1/9/06
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Mobile Media Players Plan New OfferingsIntel

• Intel is introducing an application that will
  enable a PC to become a TV receiver, and capture
  live local television stations broadcast
  signals.
• Intel estimates that the industry is about one
  year away from enabling the typical cell phone to
  capture local TV signals for live viewing, though
  this timeline may be complicated by the 2009
  analog-to-digital conversion deadline.

Source Cable Spots, 1/11/06
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Business and Revenue Models in Flux

• Some feel that the new advertising model will
  become user-specific for example, based on
  downloads.
• Pricing conundrum priced too high, viewers will
  opt for other readily-available entertainment
  options too low, and the content will be
  devalued.
• Too early for a clear vision to emerge.

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Advertising Model is Similarly Unclear

• At the Consumer Electronics Show (CES) 2006,
  panelists noted that no one advertising model is
  set in place and that currently each deal is
  quite unique.
• Coca-Cola spokesperson suggested that as much as
  50 of Cokes budget could be spent in mobile
  within ten years.
• The vast majority of subscribers, however, do not
  want advertising on their phones well targeted
  text messages might be considered more
  appropriate.
• Agencies noted a need for mobile specialists
  currently they have no one on staff with
  experience in mobile.
• Predictions include mobile search, and possibly
  ads that run between the time a call is placed
  and the time the party picks up the phone, a
  tactic currently in use in Asia.

Source spotsndots, 1/9/06
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Suggestions for Encouraging Consumer Usage of
Mobile Content

• Short clips will likely be seen as more appealing
  than long form programs.
• Quality sound and video need to improve.
• Plans need to be priced appropriately an April
  2005 Jupiter Research Report found that 44 of
  consumers indicated interest in viewing mobile
  video for free, but only 19 said they would be
  willing to pay for content.
• Downloading and billing procedures must be quick
  and easy, and carriers need to take the time to
  educate consumers.

Source Nielsen, Mobile Entertainment
Furthering Mobile Capabilities Beyond
Communication, 9/26/05
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