According to a new report from Nielsen Mobile, only 5% of all U.S. cell phone owners subscribe to a mobile TV service. Yet that number is the highest out of of all the other worldwide markets tracked by the company. Only France and Italy came close, each at 4 percent. According to Nielsen, mobile video use isn't more prevalent due to lack of differentiating capabilities, high cost, and lack of compelling content. In fact, we are now even seeing mobile video's plateau - a point where you would normally expect to see adoption slow considerably.
In the U.S., 10.3 million mobile phone subscribers watch video content on their mobile phones each month. These clips from mobile web sites, subscriptions delivered by the carrier, or through mobile "live" TV programming. But the mobile video subscription market has barely grown during the past year. In Q3 2007 it was at 6.4 percent and by Q3 2008 it was only 7.3 percent. And only 26% of subscribers who paid for mobile video services during the third quarter of 2008 used them at least once a month.
Taken at face value, these numbers look bad for mobile TV's future, but don't count it out just yet. New developments in the mobile video marketplace have the potential to reinvigorate the industry and allow it to grow once again. Says Nielsen, the expanded use of mobile web and mobile web video, an improved advertising subsidy to subscription-based streaming mobile video services, and the rollout of mobile digital television (mobile DTV) could combine to be mutually beneficial for carriers, device manufacturers, content providers, advertisers and consumers.
Most notably, a groundbreaking new service made its debut at this year's CES. The Open Mobile Video Coalition (OMVC), announced that a new mobile DTV service will soon arrive in 22 U.S. cities, covering 35% of U.S. television households. The mobile service aims to provide live, local and national over-the-air digital television to mobile devices.
Included in the service are 63 stations from the 25 major broadcasters that are on board. Those include NBC Television, Gannett Broadcasting, Sinclair Broadcast Group, Fox Television, Belo Corp., Grey Television, Scripps Television, Hearst Argyle Television, ION Media Networks and Lin Television.
This mobile TV service may succeed where others have failed because it bypasses the carriers altogether. Instead, the service uses an ATSC broadcasting system to beam signals directly from the station to the mobile devices themselves. This unburdens the carriers from having to support the data transmissions - they just have to sell the phones.
Of course, in order for this new technology to work, you have to have devices capable of receiving the signal. LG Electronics is prepared for that - they showed off prototype phones at CES along with DTV-enabled laptops, portable navigators, and in-car DTVs. Some laptops were shown with a USB dongle that included a long antenna which could bring DTV to anyone's computer.
Although mobile DTV holds great appeal (as evidenced by the enthralled crowd of spectators around LG's booth), in order to move forward, device manufacturers like LG and Samsung will have to remain committed to bringing these prototypes to market. Nielsen also notes that one forward-looking carrier needs to step up to the plate and deliver a handset that offers free DTV in order to generate interest in the service and grow the market. That certainly needs to occur before attempting to sell premium levels of content to consumers.
This would be a good path for the carriers losing customers to take as a way to differentiate themselves from the others. As more customers migrate to AT&T for the iPhone or to Verizon for the Blackberry Bold, for example, the losing carriers could introduce free mobile DTV services in an effort to win them back. Considering that both AT&T and Verizon already offer mobile TV through Qualcomm's MediaFLO technology, it will become more important than ever for the remaining carriers to do something in order to remain competitive.
Although we're not sure that a mobile DTV-enabled phone could get us to give up our iPhones and other preferred smartphones, we would at least like to see some free DTV options made available. At the very least, we would love to get our hands on a laptop dongle so we can watch TV anytime, anywhere. We hope that 2009 will be the year when this becomes an (affordable) reality.
Image credit: Mobile TV on MP3 player, courtesy of DVICE
Comments
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No.
Posted by: Mona N.
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January 12, 2009 7:29 AM
with projectorphones? sure.
Posted by: Michael J. Cohen (mjc)
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January 12, 2009 7:33 AM
@Mona 3 is an Italian mobile company and this is Mobile TV http://www.la3tv.it/
Posted by: Roldano De Persio
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January 12, 2009 7:34 AM
These are videophones http://www.tre.it/public/Negozio_videofonini.php?find=n_n_n_0&T_0=n&T_1=n&T_2=n&T_3=0&BottoneINV.x=2
Posted by: Roldano De Persio
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January 12, 2009 7:36 AM
sure it does if the quality is good enough
Posted by: Cee Bee
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January 12, 2009 7:38 AM
too small!
Posted by: marcantonio
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January 12, 2009 7:39 AM
I can't see watching television on a 3" screen.
Posted by: Sergio Cruz
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January 12, 2009 7:39 AM
As an independent device, no.
Posted by: Amit Morson
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January 12, 2009 7:45 AM
Mobile TV is quite hot here in Hong Kong and even more so in Japan and South Korea. Me personally have very little need for it, but that could be, in my opinion, the lack of good content here in HK.
Posted by: Vinko
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January 12, 2009 7:47 AM
I think that mobile live streaming services such as Qik or the upcoming Ustream Mobile could gain a valuable market share also.
Mobile TV for MIDs with 5" or larger screen has a future, yes. Trivial to add tiny digital tuner chip to watch OTA television - FOR FREE.
Stay away from / protest canned video that the evil carriers charge for and want you to think is "television".
I think Mobile TV is slowly losing its way, thanks mainly to iTunes with it's TV programme offerings!
Posted by: Josh Chandler
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January 12, 2009 8:26 AM
What is TV in a mobile anyway. I'm kinda of tired of this classification thing when we're moving towards handsets that doesn't differ between mobile and other types of content. When you're browsing YouTube with an iPhone you're simply visiting the same youtube as with your computer, of course the interface from time to time might be different, but over time this is not a problem.
Conclusion. no, mobile TV doesn't have a future - browsing websites that might have TV content with a mobile - yes.
I'm still undecided because I don't know the main use of mobile TV. I think it is going to develop especially as more people adapt to smart phones, but when can people actually utilize it? Mobile TV is best for commuters who train/subway it to work everyday, but other than that, when can you really use it? Maybe when waiting for appts, I just don't see the everyday use. That is why I don't buy TV episodes or movies off of itunes.
The number of PCs & devices with mobile TV were really high this year. Was cool to see. Of course, with caveats that may not be available in US.
Posted by: Lora Heiny
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January 12, 2009 6:44 PM
Only in Japan and Europe. There's no easy way to get mobile TV in the US unless you want to carry around a huge antennae.
Posted by: Rodfather
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January 12, 2009 6:45 PM
Rodfather, my understanding of the tech is that the Digital standards negate the need for an external antennae.As for the future: nope. People are no more likely going to watch tv on their phones than they will at home, and we know the direction that's heading. The future is on demand web video
Posted by: Duncan Riley
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January 12, 2009 6:51 PM
Hmmm, I've had TV on my mobile phone for 4 years now. My current phone is the first one where it's standard and I don't have to pay for it. I don't watch TV at home, so I thought watching out would be lame. Honestly, it's a great way to catch up on news (I have 5 live news stations) and when it had Chappelle Show on it, it was a great time passer. Now, I only turn it on when I have the kids with me and we have a long wait ahead of us (it has Nick, Nick Jr. & Noggin--taped and On Demand).
Posted by: Anika Malone
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January 12, 2009 6:53 PM
thanks Duncan for that. I was trying to get that out to someone yesterday. the cable companies will wholly own content and resell to those with "digital" access.
Posted by: tony
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January 12, 2009 6:55 PM
It's a lot easier to pick up over-the-air TV signals in Japan and Europe. I just can't imagine the masses paying for TV service through their cell service using EVDO/3G. Not unless it's a lot cheaper and the bandwidth for cell services are much higher.
Posted by: Rodfather
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January 12, 2009 6:57 PM
Yes, Mobile TV Does Have a Future . . . especially for those who are now using Mobile for other things.
How about Mobile Cable/Satellite, which you can have with 1) a Cable/Satellite account, 2) a Tuner for your computer (starting around $20 on Amazon), and 3) Internet access on your mobile (I'm using wifi). It also works with an antenna.
Last night I watched the Lakers-Magic game on ESPN and now I'm watching Gangland on the History Channel on my ATT - HTC 8525 (no, not on the same device I am typing this on.
Check out http://mycast.orb.com/