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The leading e-zine for the mobile content industry Newsletter: OCTOBER 2009
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NEWS:
Mobile video
adds to Euro
mobile industry
recovery
RESPONDING to customers' needs by offering a combination of entertainment, convergence, communication and applications in vertical markets will see the European Mobile Industry consolidate its attempts to recover from the economic downturn. This is the key finding from a new report from Frost & Sullivan who identifies innovation and collaboration as crucial factors in propelling future growth, paving the way for future industry developments. F&S says that before the recession the European mobile industry was at a turning point: it needed to be redefined and new revenue sources were essential. The analyst believes that the crisis exacerbated this situation and forced the industry to take up new initiatives and investigate new strategies. It adds that now that immediate reactions to the crisis such as cost reduction and resources optimisation have been carried out, the industry now needs started looking increasingly at providing creative and innovative solutions to customers' needs. "Valuable business opportunities would come from market players' collaboration. Resources optimisation remains critical and increasing strategic partnerships can be extremely beneficial. This strong collaborative focus will make the life of the mobile industry easier in this final phase of the economic downturn," explained Saverio Romeo, Frost & Sullivan Industry Analyst. F&S points to where the market has already embarked on some valuable initiatives such as the success of the iPhone and the Apple Apps Store launched a new model of delivering mobile content. "The European Mobile Industry is slowly recovering from the economic downturn. Some initiatives and ideas have helped the industry and set the basis for future developments.
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VIVE LA MOBILE TV REVOLUTION
Mobile networks, connected devices and PCs are liberating users from the armchair. Damian Mulcock, CEO of Mobix Interactive, a pioneer in mobile and IP-based video, explores how this revolution is in turn having a significant effect on when and where consumers want to access and view content and the associated technologies.
The hype surrounding mobile TV and video has been around since day one of the mobile internet, yet it is only now years down the line that we are seeing services begin to move into the mainstream. But why the hold-up; why is it taking the industry so long to roll-out viable and robust services? Whether you’re an operator, technology provider or content owner, the multitude of challenges facing the mobile TV and video ecosystem have been plentiful and diverse. The availability of spectrum has been a major factor in the roll-out of planned and much hyped mobile broadcast services, which have been delayed by local DTV switchovers and regulatory upheaval. Consumer uptake of services over 3G has been hampered by a lack of suitable handsets available at a mass market price point, not to mention a lack of bundling of services with tariffs and reasonable data allowances. Pressure has also been mounting on all sides regarding the monetisation of these mobile TV and video services. After years of hype is anyone making money? And if so who?.

Demand for flexibility
What has become clear to all in the value chain is that mobile TV and video are not as simple as replicating the traditional linear viewing experience on a handset. The very un-tethered nature of mobile viewing means consumers are in turn demanding flexibility in what they want to watch, and significantly, when they want to watch it. If we look at the television, cable and IPTV industries, we can see that a notable shift has been taking place across all content consumption habits. This is due in large part to advancing technology and the proliferation of mainstream broadband, enabling cviewers to consume catch-up programming and access fresh content on demand in addition to traditional programming. The industry as a whole is heading towards a hybrid, complementary viewing environment, where traditional linear programming is increasingly sustained and enhanced by an on demand offering. And why would mobile be any different?

Loyalty creation
This on demand availability of programming is driving the recognised consumer demand for flexibility in when and where they can watch their content of choice. From the consumer’s point of view, it is the quality of experience, content and value of these TV and video services which is really going to drive demand and start creating loyalty. With viewing requirements and habits evolving as fast as technology will allow, the success of video lies in an operator’s ability to unlock new revenue streams, cement customer loyalty and increase ARPU with the integration, management and commercialisation of ad-funded and premium content. The integration of ads with both free and premium content provides the necessary pricing control, creates a way around the economic barriers to adoption for the consumer and provides a unique opportunity to upsell premium services to users. This integrated model also allows operators to easily respond to the trend towards convergence by leveraging their broadband assets and extending their video offerings across multiple screens. In order for this model to be achieved, operators, content owners and advertisers must tightly manage video delivery, the integration of advertising, multi-screen publishing and offer management. To do so, operators require a multi-screen “back office” platform that combines an integrated TV and video experience with dynamic, targeted ad insertion across multiple screens. A single platform driving all screens will result in the ability to market the anywhere, anyhow content paradigm that consumers already live within, but in a disconnected fashion.

Converging media landscape
This ever converging media landscape demands those behind the technology driving it forward, as well as those developing the content itself, to think much more collaboratively; no longer can either traditional cable, IPTV or mobile content be considered as a standalone entity. As we trend towards a ubiquitously connected environment each of these three screens must be viewed as complementary to the others and the technology and services evolving must converge in order to deliver a seamless and compelling viewing experience across all three.
MARKET ANALYSIS Signage

NO AGE BARRIERS IN USAGE
OF MOBILE VIDEO DEVICES

REFLECTING the disruptive nature of the iPod and iPhone to the industry, the use of mobile video-enabled devices among 13-54 year-olds has doubled in three years according to a new report by Knowledge Networks research. The report revealed that net ownership of devices such as an iPod and/or laptops increased almost 50%, from 45% in 2006 to 66% in 2009. This has contributed to a doubling (21% to 43%) in net use of these mobile technologies to view video during the same timeframe. Knowledge Networks also found clear differences in how these mobile devices were used for video watching. Nearly 60% of laptop users view video on their mobile devices exclusively at home yet for those with video enabled mobile phones this proportion was 30.8%. Nearly a quarter (23%) of those surveyed in 2009 said they own a video iPod, compared to just 5% in 2006, making the device a huge media channel of interest. Ownership of a video enabled mobile phone grew from 6% to 10% during the same timeframe; and laptop ownership rose from 43% in 2006 to 57% in 2009. The average time spent using each device for video is quite different; a typical laptop viewing session is 33 minutes long, versus 23 minutes for a video iPod and 15 minutes for a cell phone with video service. "Our research suggests an increasingly important opportunity for content providers and advertisers--the use of mobile devices to access video," said David Tice, Vice President and Group Account Director at Knowledge Networks. "We see sometimes dramatically different patterns in how people use these devices to watch video - such as at home versus on the go, or how long people typically view - but a majority of all viewers are willing to watch ads in exchange for free video. This kind of learning is essential to making the most of the mobile video environment."












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