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A
REPORT by high tech market researcher In-Stat has found that
over the last 12 months new forces are validating the concept
of mobile video and driving its uptake. The first dynamicis
that Internet delivery of user-generated and professionally
produced content is moving viewers from their living rooms
to their computers, the high-tech market research firm says.
Second, high-quality mobile devices that use wireless networks,
such as Apple's Wi-Fi iPhone and iPod Touch, are improving
mobile access to the Internet in general. As a result, says
In-Stat, Internet video is increasingly meaning mobile video.
Over half of the respondents to the In-Stat survey reported
watching Internet video in the previous 30 days. There was
a strong preference for full-length shows rather than selected
highlights tailored for mobile viewing and US survey respondents
preferred monthly subscription fees to the purchase of video
devices. In its report, In-Stat identified two potential models
for mobile TV viewing: waiting room' and "leisure
time" both with very different requirements. David Chamberlain,
In-Stat analyst, pointed out, "Personal devices such
as cellphones and personal media players are preferred for
the waiting room scenario. However, if there is more time
available, survey respondents preferred larger screens on
products such mobile Internet devices or ultra-mobile PCs"
In-Stat's research also found that mobile operators are offering
both 3G and out-of-band video content (such as MediaFLO, DVB-H
or 1-Seg) and have the near-term advantage fulfilling both
leisure time and waiting room usage models.
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ASK
THE EXPERT |
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Finding
video content:
The searching questions answered |
| A
hitherto barely mentioned areas of the mobile
video market could well be one of its most profound:
that is how to find video content. In this Q&A,
Steve Ives, CEO and founder of Taptu challenges
the conventional wisdom around search.
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What
is the general state of the mobile TV and mobile video
market?
Where we are seeing traction is with video content in
the entertainment search sector. Video content is steadily
gaining traction with users of Taptus search engine;
better devices, better data rates and better content
available are all factors. The desire to share videos
and images with friends and family via the mobile phone
is reflected in the rise of recreational searches being
carried out by consumers. We have seen Taptu's video
content segment more than double in two months; partly
due to Taptu's extremely fast-paced growth as well as
the increase in popularity of video content. We expect
a hundred-fold increase in the number of videos being
consumed by our users in a year from now.
Why has the market
grown to the extent (or lack of it) thus far on a worldwide
basis, or with reference to a particular region?
The
market for mobile content is increasing exponentially.
However, four main factors are holding back the full-fledged
development of mobile video. Firstly standardisation
is a common growing pain of any technology, and mobile
video, like all others, has to go through the VHS vs
Betamax, BluRay vs HD-DVD battle. In the case of mobile
TV, the two main standards are DVB-H and MediaFLO. It
is merely a case of watching and seeing which standard
the mobile market supports and finally adopt as a collective.
Meanwhile, the video streaming standards are fairly
set, with most handsets being able to handle mpeg and/or
3GP. A next real consideration is the content itself.
When entertainment happened at the theatre and the TV
came in, they put a camera at the back of a theatre
and broadcasted that. The same is happening with TV
and mobile video. The content will need to be different;
video podcasts, shorter pieces of content, different
approach. Video content needs to be built for the mobile
phone not just repurposed from the desktop. There is
still an issue from operators regarding how much data
can travel around their networks, as some of them dont
have the capacity to support large amounts of data activity.
As a result of this operators are reluctant to encourage
streaming video, as it would weigh heavily on their
network.
Finally
the handset itself is another factor holding back the
market. Screens are generally very small and leave you
squinting at the image. This combined with poor resolution
has contributed to the mobile market not yet being ready
for mass video consumption. Although, Apples iPhone
beats other screens by bringing in its own standard,
the user experience is still compromised. Until the
quality of viewing video content on the mobile screen
improves, user demand will not significantly grow in
this region of the mobile market.
What will be the likely
key elements in market growth-how important will content
be in this?
No matter how good the technology becomes, if the content
isnt compelling enough for users, there will not
be a significant increase in consumers searching for
mobile video and finding the experience exciting
enough to return. At the moment content isnt bespoke
for mobile and can sometimes be a bit clumsy on a small
screen; but end user demand for mobile content means
more people are willing to deal with bumps in the road
in order to get to it. Also, if the price is right then
regardless of the quality of mobile video, your early
adopters will always be willing to try out new services.
How well can
mobile video content be accessed right now why
is this?
Accessing mobile video content at the moment can sometimes
be difficult. There are many handsets and many networks,
which means that the market is very fragmented. Operators
have different regulations on what theyll let
through on their network and can often leave consumers
frustrated by what they can and cant download.
Tim Hyland from YouTube recently aggregated data that
shows that as many as a third of European operators
block the RTSP protocol through which video can be streamed.
With this in mind, it is no surprise that consumers
can sometimes be reluctant to access video content from
a mobile after one bad experience. Until operators choose
to embrace mobile TV and play ball with the content
producers, then growth in this area of the mobile market
will not see any significant pick-up.
What needs to happen to make easier the search for content?
Video, unlike text-based content, doesnt contain
keywords and tags by default. The content owners, in
particular in the case of user-generated videos, are
responsible for associating the right keywords to their
content. Unless this metadata gathering is improved,
video remains more challenging to index. Once identified,
the key to making search easy is cooperation between
content producers and distributors. For example, Taptu
is working with partners offering them a search API
which enables them to distribute their mobile friendly
content on a larger scale. Its about providing
a service that not only benefits the end user but also
the partner sites. Mobile social networks are a great
example of this collaboration and consumer accessibility
to content. Social sharing of results will allow for
a higher frequency of usage and fortify on-device portals,
creating an attractive proposition for the carrier.
Consumers also need to be educated on the costs of video
on their phones, as our voxpop interviews show that
most mobile users are nervous about the costs theyll
incur when using the mobile web.
What are the
intrinsic challenges in making this happen?
Searching for content needs to be made intelligent.
This means putting control back in the users hands
and allowing them to get to where they want without
wasting time. Were impatient beings, so the less
clicks and scrolls it takes to find what you want, the
better the experience.
Sharing content from the mobile web has become a focus
point for many consumers; with a surge of activity amongst
people accessing social network sites such as Facebook
and YouTube on their mobile phone. Therefore, making
search social is simply the next evolutionary step in
mobile search. By making mobile search social, consumers
can make recommendations to their friends and peer groups
about whats in, whats hot and whats
not!
How will future technologies
in particular video search affect the market
development?
Mobile social search is set to challenge the conventions
of current search and the way we access content. With
operators putting restrictions on download size from
the web, sharing links to and accessing video content
via mobile social networks can offer a legitimate solution.
Search is no longer set to be dominated by its PC ancestor.
Mobile search is all about content rather then specific
keywords. When we talk about video search we are really
talking about a service incorporated into a much wider
remit. There is no ignoring the social connotations
of looking for and sharing video content. With social
search gaining pace on the mobile handset, so will video
search. It is only a matter of time before operators
take note of what is driving traffic and look to see
how this can be monetised. With the chance to increase
revenue share, carriers will soon see that it is in
their best interests to provide greater data capacity
through their networks making video download more accessible.
But ultimately what will likely be the successful business
model?
Mobile video seems likely to follow the ad-funded model,
certainly where search engines are involved, as well
as pay-per-view, which is a model UK network Three,
amongst others, is already using for user-generated
content. Mobile TV will probably take a different approach
with subscription for premium content like sporting
events. Free-to-air content for some channels is bound
to take the ad-funded approach as its a tried
and tested model as long as the resources are
genuinely useful for the users. By using social pages
to link to public or social online spaces such as YouTube
or Facebook, the mobile versions of these simply add
a new dimension in our demand for content. As demand
for greater content increases accessibility to video
content will improve, in turn leading to a sharp rise
in growth in this area of the market. It is only a matter
of time before one operator takes on the challenge of
progression and gives consumers what they really want.
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MARKET
LEADING ANALYSIS |
C2M |
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