Making a Success of Mobile TV and Video

This publication has been discontinued on July 19, 2011.

Introduction

Abstract

Recently there has been a proliferation of mobile TV and video trials and commercial services, with:

• diverse approaches to services, pricing and marketing
• new technology options
• growing involvement of players outside the mobile operator community, including broadcasters, content providers and content aggregators.
• With mobile TV and video services attracting significant consumer attention and interest, we see substantial rewards for 3G operators that find the right business models, and big pitfalls for those that do not. For mobile TV and video, more than for any other mobile service, mistakes could be very expensive.

This report helps mobile operators and their partners implement winning business models, by defining the services that should be offered, the best technology path and the right partners.

Making a Success of Mobile TV and Video answers your key questions:

• What are the key ingredients of a compelling TV and video service for mobile users?
• How should services be promoted and priced?
• What are the real capacity limitations of 3G (and HSDPA) networks for TV and video? What service usage can be supported and exactly when will operators need to deploy additional broadcasting technology?
• What is the new 3G MBMS broadcasting technology? What will it bring, and how will it change the rules of the game?
• What will be the impact of dedicated networks for mobile TV and video broadcasting, including DVB-H, DMB and MediaFLO. Which are the likely winners?
• What partnerships will be critical to the success of mobile TV and video? What will be the role of pay-TV companies, broadcasters, mobile TV and video MVNOs and other third parties?

  Table of Contents

  • 1 Critical decisions are now required to make a success of mobile TV
    • 1.1 Operators are taking diverse approaches to mobile TV and video services, but not all will succeed
    • 1.2 Success will depend on the careful design of services, marketing, technology and the value chain
  • 2 Services must bring the appeal of traditional TV to mobile users
    • 2.1 Mobile operators are starting to embrace mobile TV and video services
    • 2.2 Rapid developments in 3G TV and video services have resulted in diverse propositions from mobile operators
    • 2.3 Conventional TV combines a wide choice of content with the mass appeal of mainstream TV channels
    • 2.4 Mobile TV and video must be suitable for customers in a variety of usage situations
    • 2.5 Mobile TV and video services must fit within technology constraints
    • 2.6 Mobile TV and video should be made an important part of 3G service marketing
  • 3 3G will dominate early mobile TV services but has important limitations
    • 3.1 3G will carry the vast majority of mobile TV and video services over the next three years
    • 3.2 Success of TV and video on 3G networks demands careful management of service usage and revenue per Mbyte
    • 3.3 Underutilised 3G networks can support high usage in the short term, but strong take-up could swamp them
    • 3.4 Pricing of TV and video on 3G networks must carefully balance affordability for users with profitability for operators
    • 3.5 While Super 3G and 4G are options for the future, broadcasting technology may be required much sooner
  • 4 MBMS will add a valuable broadcasting capability to 3G networks
    • 4.1 MBMS overcomes capacity and cost limitations of conventional point-to-point transmission of TV and video on 3G networks
    • 4.2 To succeed with MBMS, mobile operators must develop a small number of highly popular channels
  • 5 Dedicated mobile broadcasting networks could complement or compete with 3G
    • 5.1 DVB-H, DMB and MediaFLO are vying for deployment in Western Europe and the USA
    • 5.2 DVB-H will require major investment, and the need for new spectrum may limit deployment to a small number of markets
    • 5.3 DMB is an enhancement of DAB radio and is emerging as a strong competitor to DVB-H
    • 5.4 MediaFLO will be implemented in the USA, but its broader prospects are uncertain
    • 5.5 Fragmented adoption of broadcasting technologies will limit economies of scale compared to 3G
  • 6 Broadcasters and third parties must become increasingly involved
    • 6.1 Broadcasters and third parties can add key elements to the value chain for mobile TV and video services
    • 6.2 Mobile operators must carve out their role in the mobile TV and video value chain using their 3G networks and customers
    • 6.3 Pay-TV companies can play an important role and bring in significant numbers of customers
    • 6.4 National broadcasters can bring mainstream content and loyal customers to mobile TV and video services
    • 6.5 Other parties may play an important role in providing aggregation, editorial services and technical support
    • 6.6 A variety of value chains will emerge
  • 7 Success of mobile TV and video requires nine key ingredients

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