Mobile Television: The Emergence of a PersonalMass Media Platform

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Mobile Television The Emergence of a
Personal-Mass Media Platform

• Sylvia Chan-Olmsted
• Professor and Associate Dean for Research
• Department of Telecommunication
• College of Journalism and Communication

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An Emerging Main Stream Medium everyone has it!
HK 130
Broadband Internet 53
Cable TV 70
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An Emerging Main Stream Medium not just a
telephone!
Communication Interacting with the phone
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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
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I want my mobile phone
Traditional media on a new platform
SMS MMS IM
Television High quality audio
Broadband Internet Email
Banking Bill payment Shopping
Gaming GPS
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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

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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

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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

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Mobile TV Viewers Worldwide
VAS Research Series 2007
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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

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The Characteristics of Mobile TV
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Mobile TV Development Issue I Technology

• Choice of Mobile TV platform is influenced by
  cost, regulation, and applications planned.

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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

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U.S. Mobile TV Consumers
Mobile TV users are ethnically diverse
Not just for the very young over half are In
the age group 18-36
Skewed toward male
Telephia Mobile Video Diary Report 2006
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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)

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U.S. Mobile TV Usage by Daypart
Telephia Mobile Video Diary Report 2006
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U.S. Mobile Video Usage
Small portion of mobile Users Infrequent usage
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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

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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.

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U.S. Mobile Subscribers Key Motivators in
Subscribing to Mobile TV Service

• Cost of service (64)
• Available channels (52)
• Picture quality (49)
• Screen size (47)
• Channel reception (46)
• Sound quality (39)
• Ease of use (36)
• Security (21)
• 2007 ComScore Survey

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Mobile TV Development Issue III Content

• Technology enabler
• Content driver
• Content 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!)

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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 ATT 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.

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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

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U.S. On-Demand Mobile TV Usage
Short clips - Music, news, Sports, Weather, Comed
y, Animations, Highlights
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Mobile TV Channels Ranked by Share of Total
Audience
Telephia Mobile TV Diary Report 2006
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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

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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 mobile company to media company (UKs
  3 mobile company)

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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
• Googles bid of the newly available radio
  frequencies
• Verizons announcement to open its network
• Open access is likely to lead to more innovative
  applications

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Mobile TV Development Issues V Alliances and
Marketing

• 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

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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

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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
• Japans DoCoMo keeps 12 Italys H3G keeps 85
  of the revenues
• Percentage to content providers influence
  availability of good content products

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Mobile TV Development Issues V Business Models

• Mobile Advertising targeted medium platform
  with mobility, personalization, and
  interactivity.

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Ad Budget Shares of Emerging Media
AAF Nov. 2006
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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

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Mobile Advertising Spending
E.g., SMS
E.g., placement ads
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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.

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U.S. Mobile Phone Application Revenues
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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

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Mobile TV Development Issues V Quadruple-Play
Business Strategy
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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.