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The leading e-zine for the mobile content industry Newsletter: OCTOBER 2009
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NEWS:
Mobile video
still lacking
in stickiness
for rapid growth
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...

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 industry’s premier European exhibition. Well no iconoclast us: in this latest C2M newsletter we’ll 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 it’s 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. It’s 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 O2’s 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. It’s 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 Vodafone’s soon after. And for the record, my order is in with Vodafone already. Do enjoy this month’s newsletter.
Joe O'Halloran, Editor of C2M magazine & the C2M e-zine
SPECIAL REPORT Signage
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.
You’d 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 there’s 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 can’t pay for them then how do suppliers exist? Well you’d think that an exhibition for such technology would have been something more akin to a wake than a showcase. Well you’d 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 year’s 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 can’t 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 haven’t. 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. “There’s 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. “[MediaFLO’s] 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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