Ad-subsidized mobile video: Where is it GoTV?

Thomas Ellsworth, CEO of GoTV Networks

GoTV plays in a number of areas, but got its start offering various channels of made-for-mobile, paid-for content through carriers including Sprint Nextel. Today, the company is working to supplement its made-for-mobile video [1] channels with an ad-platform play [2] the company said will allow advertisers to push their messages to a large number of mobile video viewers.

How much of your revenues come from ads? Ellsworth said 10% of GoTV's revenues come from advertisers, while 50% comes from users' subscription fees. He said the remaining 40% comes from customers like Sprint and gum-maker Wrigley, which pay the company to create made-for-mobile video content.

GoTV typically charges around $5 per month for its content channels, which include Hip Hop Official, Altitude and other apparently trendy services.

What's the future of ad-subsidized content? "It has to go ad supported," Ellsworth predicted. He said the upsurge of unlimited service plans from the likes of Boost Mobile, AT&T Mobility, Verizon Wireless and others will essentially squeeze out additional monthly fees, including fees for mobile video and TV. He said wireless users will no longer be willing to pay extra charges for mobile video in an unlimited paradigm, and carriers won't want to share revenues from unlimited plans with content suppliers.

"That's the new world order, and we've prepared ourselves for that," Ellsworth said, explaining that GoTV's ad-platform positions the company to aid marketers looking to test out the mobile video waters.

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