Mobile television: issues and opportunities A broadcasters perspective

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Mobile television issues and opportunitiesA
broadcasters perspective

• ASSOCHAM conference
• New Delhi, 19th April 2006

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Issues and opportunities

• Issues
• Technology issues
• Content issues
• Business issues
• Regulatory issues

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Issues and opportunities

• Opportunities
• Consumer/market opportunity
• Broadcaster opportunity
• Telco opportunity

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Consumer/market opportunity

• Forecasters numbers differ but all agree the
  opportunity is enormous
• Strategy Analytics Mobile Broadcast TV caution
  needed as the bubble grows
• Hype out of proportion with consumer interest
• Development vendor driven
• Carriers motivated by fear and uncertainty, not
  opportunity

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Consumer/market opportunity

• Hindu Business Line Time not ready for mobile
  TV
• Service providers battling with staggering demand
  for voice. Non-voice revenue only 8-12 of total
• TV network Rather focus on core business,
  outsource mobile

29th March, 2006
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On the telephone

• The Americans have need of the telephone, but
  we do not. We have plenty of messenger boys.
• -- Sir William Preece, Chief Engineer, HM
  Post Office, 1876

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On television

• The average American family hasnt the time for
  television.
• -- The New York Times, 1939

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On computers

• I think there is a world market for maybe five
  computers.
• 
  -- Thomas Watson,
  Chairman of IBM, 1949

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and then

• Roti, kapda, makaan and a mobile phone
• Mukesh Ambani, Chairman, Reliance Industries,
  2002

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Supply creates demand

• Our plan is to lead the public with new
  products rather than ask them what they want. The
  public does not know what is possible, we do.
• Akio Morita, Chairman, Sony Corporation

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Todays youth tomorrows
market

• The first generation in history to grow up with
  internet, 24 hr TV and mobile phones
• Multitasking 44 hrs of activity in a day! (Av
  2-3 other tasks while watching TV)
• Key needs community, self-expression, and
  personalization best met through music, the
  Internet, and mobile devices
• TV serves as a mechanism for escape and
  entertainment.

Yahoo!-OMD study of 13-24 yr olds in 11
countries, Jul-Aug 2005
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Todays youth tomorrows
market

• Some of these behaviours and drivers are
  intrinsically tied to this specific age group.
  But it is our belief that many of these attitudes
  and media perceptions will carry through into
  this groups adult lives
• -- Yahoo!-OMD study of 13-24 yr olds
  
  in 11 countries, Jul-Aug 2005

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Consumer/market opportunity

• Not functionality, not news/immediacy
• -- COOL is and will be the driver of all
  consumer technology
• The challenge is not to interest the consumer
  but to find the right mix of content and price

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In India

• Single TV homes counter to youth need for
  personalization
• Mobile devices enable personal space
• No. of video-capable handsets just over 1 mn in
  the US 76 mn in India
• Indian youth are ahead of the curve in adoption
  of new mobile applications

eJournal USA, March 2006 Yahoo!-OMD study of
13-24 yr olds in 11 countries, Jul-Aug 2005
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Broadcaster opportunity

• Extend reach add people who are not in front of
  a TV
• Extend prime time making dead time alive
  commuting waiting lunch time
• Extend life of content re-purposed content for
  short viewing periods
• Sampling short duration content to draw audience
  into channel for main telecast

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Telco opportunity

• Falling ARPU ? VAS

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Issues and opportunities

• Issues
• Technology issues
• Content issues
• Regulatory issues
• Business issues

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Content issues

• Nokia-O2 Oxford trial News most popular
• Killer app will be cricket!
• Attractive for broadcasters marginal cost
• But not just little TV relationship needs
  understanding duration and presentation
• UK study max 3 min, 1.
• Innovation is key. Technology and market will
  drive each other

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Business issues

• New business model for broadcasters
• Revenue from consumers, not advertisers
  (telephony has shown the way)
• Consumers, not viewers
• Content to consumers and to operators
• Mobile only content
• On demand programming
• Integrated advertiser solutions
  web-broadcast-telephone

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Regulatory issues

• Broadcast law limited to Cable Act
• Mobile TV reg Telecom reg broadcast reg IPR
  law (Single regulator helps.)
• Broadcast content regulation and watershed
  policy will apply to mobile TV?
• If you cant regulate internet and mobile phone
  content, does it make sense to regulate only the
  broadcast component?
• Can you leave it alone?

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