Title: Mobile Media
1Mobile Media
2Mobile 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
3The 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
4The 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
5The 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
6Mobile 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
7Despite 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
8US 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
9Roadblocks 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
10Predictions 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
11Use of Entertainment Features on Mobile Phones
is Still Limited
Source Isobar/Yahoo! Fluid Lives Global
Study, released April 2006
12Use of, and Interest in, Cell Phone Features by
Age
Source Pew Internet and American Life Project,
AP, and AOL, April 2006
13How 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
14eMarketers 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
15In-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
16Retrieval of News and Information is Among Top
Growth Areas for Mobile Applications
Source MMetrics, mobile owners consumption of
content and application in July 2005
17Consumers 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
18How 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
19Nets 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
20ABCs 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
21Despite 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
22we 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
23customer 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
24Many local broadcast stations are turning to
third parties for assistance in making mobile
content available to consumers.
25Local 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.
26Local 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.
27Currently, 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
28LSNs 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.
29Establishing 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
30CBS 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
31Striving 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
32Mobile 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.
33Mobile 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.
34In addition to announcements of wireless content
delivery options, several companies have recently
begun marketing portable, personal media devices.
35Mobile 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
36Mobile 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
37Mobile 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
38Mobile 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
39Business 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.
40Advertising 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
41Suggestions 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
42Thank You!www.tvb.org