Watching the Mobile TV Market

2007-11-14 17:23:39 By Shahid Ahmed Source: http://www.accenture.com

Analysts expect mobile TV to be a promising frontier in the handheld industry, with subscribers that could grow to 1.2 million in 2005, and revenues that could grow to $1.9 billion in 2008.

To kick start the opportunity, wireless carriers, handset manufacturers and content providers have been experimenting with mobile TV. For example, in Korea, SK Telecom is conducting a consumer trial of a satellite digital multimedia broadcasting (DMB) service that is expected to launch as a paid service later in 2005. It offers 12 video channels and 22 CD-quality audio channels using the 25 MHz frequency range. Consumer surveys have shown that drama, music, news/weather and movies are the most desired content on DMB in Korea. Consumers will pay a flat monthly fee of about US$13 for the service.

Similarly, in Europe, wireless carriers Vodafone Group plc and MMO2 are testing digital video broadcasting for handheld (DVB-H) networks. And in the United States, Verizon Wireless launched its VCAST video (streaming) service using its EV-DO as its transport mechanism, and Cingular recently announced its MobiTV service. In addition, in the US, Qualcomm is planning to launch a Mobile TV broadcast network based on its on proprietary technology called MediaFlo. It plans to resell this network to carriers and potential MVNOs.

Although promising, this early activity may not necessarily translate into success. Why? Most importantly, mobile TV will require a new delivery system to reach a mass market. It also will require all players in the mobile TV value chain to work in unison to make mobile TV function. Knowing this, wireless carriers already involved in the mobile TV market—or watching it carefully—should take preliminary steps now. Careful positioning will help ensure that your company reaches higher levels of performance in the mobile TV market when viewers really start to tune in.