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NEWS:
Mobile video
still lacking
in stickiness
for rapid growth
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FOR
content providers, carriers, advertisers and consumers,
mobile video is currently often a glass-half-full
glass-half-empty scenario according to a new posting by
industry analysts Nielsen. Despite enjoying a degree of
uptake, Nielsen believes that mobile video today still
lacks the stickiness it needs for more rapid growth. It
does say that even though tit is facile to be a pessimist
about mobile video, it is wiser to be a cautious optimist
and believes that mobile video will be a transformational
technology. Nielsen predicts that mobile video had its
best year ever in 2008 with a reach of 70% year-on-year,
the market crossed the 10 million active viewer mark in
2008 and will likely have climbed to 15.3 million active
viewers by the end of Q2 2009. The report says that a
confluence of factors-including better devices, faster
networks, dedicated programmers, consumer interest-are
priming the pump for the broader, if bumpy, adoption of
mobile video with the catalysts for growth all in place.
The analyst predicts that in the US, a subscriber with
a data package that includes video now pays $5.73 a month,
on average, compared with $8.32 in the same period of
2008. However, despite a growth of 10%, only 48% of devices
of US mobile subscribers still carry phones that are capable
of viewing video. Satisfaction with the overall experience
went down over the last year (74% in Q2 2008 compared
with 65% in Q2 2009). Nielsen asserts that consumer satisfaction
decreased around undeniably improving components such
speed, reliability, content, price and general audio and
video quality. Nielsen cautions that since its introduction,
the adoption rate of mobile video has been governed by
a revolving audience of mobile video testers, that is
to say viewers who try out the medium for under a year
and then ditch it. In conclusion, even though it feels
mobile video may still have a long way to go before making
a dramatic impact on the media economy, Nielsen accepts
that when, and not if, it does, take off, the beneficiaries
will be those who participated in its evolution, those
who anticipated and planned for this demand. |
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MESSAGE
FROM THE EDITOR...
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TRADITIONALLY
the season of mist and mellow fruitfulness, to those in
the mobile video world, this is the time of year when
we reflect upon what happened at IBC, the industrys
premier European exhibition. Well no iconoclast us: in
this latest C2M newsletter well have a full roundup
of what happened at IBC regarding mobile TV, in particular
what was on show in the MobileZone. Yet rather untraditionally
the biggest news of the season is not IBC: rather its
the latest development in the UK regarding the iPhone.
Even if the iPhone has been an unmitigated success, this
is in spite of the fact that all of the sales of the iPhone
in the UK, have been through one exclusive operator, O2,
plus one exclusive outlet. Its been tempting for
sometime to think what a multi-vendor proposition would
bring. Well that time has come. In two days of iPhone
frenzy, Apple announced that it would be ending O2s
exclusivity deal and opening up sales of the iPhone to
Orange (and soon by extension T-Mobile) and then a day
later Vodafone. This is superb news for Apple: one of
the key, or only reasons, which have stopped people from
buying an iPhone has been the fact that only O2 sold it.
No more: the announcement opens up two/three new channels
who will compete aggressively with O2 to capture new business
and inevitably upsell their existing customers. Its
also great news for the mobile video market. Mobile video
is the key application for an iPhone (despite what the
makers of the spirit level app may say). A hugely extended
iPhone channel opens up new markets for programmers, mobile
video app developers and content companies. The latter
will have a huge opportunity to offer their content to
a marketplace with an equally huge appetite for mobile
video.C2Mweb.com features almost daily stories of leading
content owners launching an iPhone app. Examples of this
are the MBL and NFL apps in the US and ITN the UK; just
watch this space before other broadcasters and content
firms launch theirs in the run up to Christmas when the
Orange deals will be ready and Vodafones soon after.
And for the record, my order is in with Vodafone already.
Do enjoy this months newsletter.
Joe O'Halloran, Editor of C2M
magazine & the C2M e-zine |
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HIGH
OPTIMISM MARKS BEST
IBC 2009 MOBILE ZONE EVENT |
| The
Mobile Zone at IBC 2009 fulfilled its mission
as the leading expo for mobile TV and video
products and services and was hailed as
the best yet. |
Youd
think that among the biggest casualties of the
largest recession for decades would be those industries
heavily dependent on discretionary spending; mobile
TV and video for example. Well theres certain
logic to that: the smartphones and other devices
need to run mobile TV and video applications are
expensive little things that would burn a hole
in most pockets at the best of times. And then
there's content: if viewers cant pay for
them then how do suppliers exist? Well youd
think that an exhibition for such technology would
have been something more akin to a wake than a
showcase. Well youd be wrong the
MobileZone at IBC 2009 was a run away success
exceeding all expectations.
Bright
outlook
This
is not mere hyperbole. Based in the spanking
new Elysium at the RAI Centre in Amsterdam,
this years Mobile Zone played host to
more exhibitors than ever all of whom displayed
a very rare quantity: optimism. Okay the optimism
was essentially guarded and there was a pervasive
air of realism but what cant be denied
is that those in the Zone, and those in the
other halls of IBC with similar products to
show, could see light ate end of the tunnel.
For some companies, the recession has actually
had a positive effect. Take MediaFLO for example.
For a number of years the mobile TV division
of Qualcomm would come to IBC to see if it could
attract European operators to use its technology
to base a mobile video service. For a number
of years the firm would return to California
without having announced one, despite undertaking
successful trials of its technology with leading
operators and content owners, even Sky Sports.
Fresh
claim
The
received wisdom has been that DVB-H services
would have dominated Europe by now: for a number
of reasons they clearly havent. This has
opened up an opportunity for MediaFLO to restake
its claim and IBC 2009 saw somewhat of a show
of strength from the MediaFLO community. In
fact, Kamil Grajski, President of the FLO Forum,
a multi-company initiative committed to advancing
the global standardisation of FLO Technology,
told C2M that he was more bullish than
ever towards the prospects of Media Flo
deployment. Theres been an explosion
of content that has mobile consumers taking
increased interest in mobile video. Grajski
reveled that MediaFLO technology was being introduced
to 15 new markets by first time players who
wanted to provide nationwide services in their
country of origin. He made particular reference
to Japan where MediaFLO had been added to the
approved list of technologies that could be
licensed on airways. But for the technology
to flourish anywhere what was needed was an
infrastructure and in a panel event the FLO
Forum attempted to show the breadth of the FLO
community partners with which FLO TV could build
up a viable infrastructure. The panel included
representatives from mobile content security
and access provider Irdeto; real-time and on-demand
video solutions supplier VectorMAX; video transcoding
firm Media Excel; mobile embedded rich media
solutions provider Streamezzo; international
communications and information technology company
Harris.
Key
theme
One
of the key themes that came out of the panel
meeting was the general consensus that mobile
video content was not an issue but that bandwidth
is. And this is the key driver for MediaFLO.
Even with high-bandwidth 3G networks, using
telecoms networks to watch mobile video paces
huge strain on networks. In fact one industry
professional, who did not want to be named,
revealed that most mobile networks could really
only ensure a high quality mobile video experience
for only ten users in a mobile cell. Such limitations
are clearly a detriment to any hopes of business
development. The FLO Forum made the eloquent
case that mobile video had to be off-band running
on dedicated mobile video networks such as the
case for the MediaFLO networks in the US used
by Verizon Wireless and AT&T. And, Grajski,
emphasised such problems in the 3G world would
not be addressed by the advent of 4G networks
based on LTE and WiMAX. [MediaFLOs]
business case becomes more compelling, especially
as the ecosystem evolves, he added. For
operators, in the short term [MediaFLO] networks
give 4G operators a positive capex option.
This was also what Neville Meijers, senior vice
president and general manager Qualcomm MediaFLO
Technologies, told C2M. Whether a 3G or
a 4G network, a [dedicated] broadcast mobile
TV network is the most efficient means of distributing
content. [We offer] an opportunity to monetise
the pipe and to open up pay services.
Infinite
variety
For
its part FLO TV itself used IBC to show a wide
range of devices and technology that could support
MediaFLO-based video. These include virtually
all of the major handsets commercially available
and also systems embedded within cars and other
forms of transport. The company chose the occasion
of the show to announce that leading US automotive
entertainment supplier Audiovox had chosen FLO
TV as its system partner in its plan to offer
live in-vehicle TV through its network of more
than 12,000 new car dealers throughout the US.
Meijers had confidence that the Audiovox relationship
would provide fruitful and would be part of
an overall strategy to deliver video services
to different platforms. He also expressed a
wish to see MediaFLO built into a whole range
of devices such as smart books as well as traditional
handsets and automotive locations. Complementing
the optimism of Kamil Grajski, Meijers predicted
that in twelve months , despite the challenge
of a complex ecosystem, complications with FLO
TV would make the long awaited breakthrough
and secure a partner with whom to launch services
in one of the major countries. So despite everything,
only optimism from the MediaFLO camp.
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