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Broadcasters make mobile TV moves
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Could broadcasters hold the key to success in mobile TV? Last week at the National Association of Broadcasters conference in Las Vegas, the Open Mobile Video Coalition initiated a push to get broadcast TV on cell phones, portable media players, in-car TVs and more.
The OMVC, which consists of broadcasters from more than 850 television stations nationwide, said that they were already testing various mobile TV standards. Once a standard is selected, the organization envisions the technology being deployed in various consumer electronics products and in-vehicle systems.
Unlike the current broadcast mobile TV model in which wireless carriers use Qualcomm's MediaFLO network and charge a monthly subscription fee for the service, the OMVC envisions this alternative broadcast TV service will be entirely ad-supported. The broadcasters would control the content and bring in the additional ad revenue with minimal infrastructure costs. The OMVC estimates that broadcasters would only have to pay about $100,000 to upgrade their existing broadcast tower.
Of course, key to this scenario is getting the broadcast TV chipsets and antennas incorporated in all the end-user devices, including cellphones. Since U.S. wireless carriers still dictate much of the inner workings of the cellphone, I think the broadcasters may initially have some difficulty getting their TV technology inside a cell phone, unless, of course, they are willing to offer some sort of incentive--an advertising revenue share, perhaps?
Is this a more viable model than the current mobile TV subscription strategy? I think that advertising-supported mobile TV is the only way to grow the base beyond the early adopters. So far, mobile carriers seem to be sticking with the subscription model until they can get their base big enough to appeal to advertisers. Broadcasters, meanwhile, would be able to leverage their existing advertisers to build this business.
Whether or not this model makes more sense, it's clear that wireless carriers need to get a handle on the broadcast TV model. Otherwise, they may soon be facing some serious competition in the form of the OMVC. -Sue
P.S. Check out contributor Andy Seybold's latest column about building mobile broadband usage below.
Comments
Posted by OldPhonie | April 22, 2008 - 12:51pm
I, for one, don't want television in my cell phone! Nor do I want ads in my cell phone, especially if I'm not watching the television that might start coming with it!
My phone is primarily for communicating with human beings (although I do appreciate having a calendar, alarm clock, and camera built in). I am not interested in receiving advertisements while I'm trying to talk with someone about the car breaking down, or while I'm trying to do my next real estate deal. Advertising is too 'available' now. Who wants more of it? And television? Well, America is too fat from too much TV to start with. It's time to turn off the devices and start living in our own 'reality' show.
Posted by Dan Doyle. | April 22, 2008 - 5:07pm
Broadcast mobile tv will bring the service to the masses far quicker than a subscription based one.
The cellular networks dont know how to deal with this because the costs of getting every one onboard are high, the business model unsolved and publics interest confused.
Streaming mobile tv is the mobile equivalent of cable it has a role like all subscription tv but free mobile broadcasting will gey everyone on the planet wanting a mobile tv function on their phone and then maybe they will buy some.
The broadcasters are showing the way to go with mobile tv just like they did when we all watched the tube in black and white.
Posted by BGanon | April 23, 2008 - 11:39am
Sue,
Broadcasted Mobile TV may not be for everybody, but the best way to gauge just how many people want it, is to bring the price down to near-free or free, combined with compelling content. Obviously then, advertising must pay a majority of that freight (plus selected upsell premium services). The catch-22 is that wireless operators will be hard pressed to grow their mobile TV audiences enough to attract advertisers, until those sub prices can come down.
In the meantime, companies (like our GoldSpot Media), will be working actively with operators and broadcasters to enable targeted and interactive advertising solutions over broadcast and 3G, to help build confidence in the advertising business model, and to justify reducing those subscription costs.
By in large, consumers LOVE their TV entertainment. Be a shame to have history write off Broadcasted Mobile TV as a failure due to restrictive entry costs for the consumer.
Posted by ken | April 23, 2008 - 2:27pm
I personally would love to have "free" TV on my Blackberry. I travel a lot and if I could get the networks or CNBC or CNN, I would find this very handy.
I'm just not willing to pay extra for TV on my mobile phone. My cell phone bill is large enough already.
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