As market predictions for Mobile TV spiral ever upwards, Avichai Levy, Senior VP of mobile multimedia and advertising comany Mobixell shares his views on what needs to happen if Mobile TV is to fulfil its lofty expectations
The dramatic rise to fame of You Tube and the media frenzy caused by
the launch of the iPhone have given rise to the rebirth of Mobile TV
and video with the potential for genuine mass market appeal. It has
also given food for thought to many mobile operators keen to have their
share of the Mobile TV pie, but anxious to avoid a case of indigestion.
Industry analysts seem to agree that the Mobile TV market is about to
take-off. ABI Research predicts mobile video will reach 167 million
customers in Europe and gross $10 billion (5.5 billion) in revenues by
2012. A recent survey# carried out among US consumers revealed that
just under 50% of respondents were interested in receiving Mobile TV
and – bearing in mind that there are more mobile phones in use
worldwide (2.8 billion) than all the TV sets, computers and cinema
screens combined – a 50% interest in Mobile TV represents a massive
potential market. Little wonder then that mobile operators are eyeing
the market enthusiastically and wondering whether the time is indeed
right to make a serious investment in this new, emerging market. So what is the secret to unlocking the mass market appeal of mobile
video?
Enjoyable experience
Mobile TV is a form of entertainment, and in order for the user
to become hooked, the user experience must be an enjoyable one.
Traditionally, the user experience has been the Achilles heel of
mobile content delivery. Whereas some level of quality will be
compromised in return for the convenience of making a mobile phone call
or even, to some degree, for being able to catch up on the days news
events wherever you are in the world, users will be less tolerant of
viewing mobile video footage such as the cat playing the piano video
or the latest Lost trailer, if the experience is not enjoyable. So
quality and usability will be key to hooking the users into the
service.
Another key factor influencing the success of Mobile TV will be its
ability to cater for a wide variety of different tastes, not just
reproducing the main TV channels like Sky, CNN or the BBC, but also
embracing content from other major content producers like the movie
companies. Like the Internet, where the long tail pattern has
unleashed a new demand for niche content, the mobile phone also has the
potential to deliver a variety of content to cater for a multitude of
different tastes. If Mobile TV is to build up a regular and returning
consumer user base, it will need to offer a variety of different
programming, including premium content; specialised content, catering
for specific lifestyle or interests like travel or sports; plus the
rich world of User-generated Content such as that found on sites like
You Tube. Admittedly, some of the video content may need to be tailored
specifically to the mobile medium, with shorter clips rather than
feature-length films. I believe, however, that the trends in mobile
consumption will increasingly emulate that of video consumption via the
TV and the Internet, especially once the user experience and price
challenges have been addressed.
The second wave of mobile video
Why is it that Mobile TV is coming of age now? There have been a
variety of trials around Europe, but there is a real sentiment today
that the tide is turning towards a genuine mass market opportunity.
Aside from the trailblazing of the likes of Apples iPhone and You
Tube, there are a number of other factors contributing to these
favourable market conditions. These include the existence of a critical
mass of handsets with video capability. Add to this the fact that high
speed network coverage has also expanded significantly, with 3G
coverage widely available and the fledgling DVB-H network also gaining
ground, spurred on by the European Commissions recent decision to
endorse it as the de facto standard across the EU. The other key
ingredient is the removal of the pricing barriers that have hampered
the growth of Mobile TV. The move towards flat rate price packages
which remove the fear of an unexpected and unwelcome bill arriving on
the doormat, combined with the prospect of ad-funded content, mean that
the scene is set for a major shift in fortunes for mobile video. 
Technology barriers
Yet while market conditions seem ripe for a change of fortunes,
technology barriers still remain. As discussed, the ultimate mobile
video solution needs to be able to accommodate a range of different
types of content premium, niche and user- generated. It also needs to
be able to amalgamate content from different sources, including cable,
satellite and IPTV, as well as drawing on the content already available
from the web and mobile. Another challenge is the need to support
different networks, including 3G, DVB-H networks as well as WiMax and
even LTE in the future, involving different delivery types: Multicast,
which is mainly used for broadcast; and Unicast, which is best for
one-to-one communications.
Another feature which is likely to entice users based on their
experience in traditional TV is the need for a personal video recorder
(PVR) service to offer a personalised storage search and play
mechanism. Other likely user enhancements include the need for fast
channel changing and an Electronic Program Guide, enabling users to
browse through and select various channels. Other useful additions
include StartOver and other video on demand (VOD) type mechanisms, as
well as SlingBox, to enable cable/IPTV subscribers to enjoy PVR
services on their mobile.
User experience
For Swisscom, a key concern when broadcasting this summers Euro 2008
football tournament to their mobile subscribers was being able to take
five live TV channels, and allow users to switch between matches either
live or recorded in a VOD service format on any handset. The operator
needed to be confident that its system could handle the massive surge
in demand during the matches and ensure that the user experience was
optimal at all times, even when a mobile users network signal was cut
off as they moved between cells and networks. Mobixells video engine
was used to provide Bit Rate Adaptation, a technique that serves to
flatten out changes in network conditions and maintain a consistent,
high quality user service.
In my view, a key driver for the commercial success of Mobile TV for
operators will be the advent of ad-sponsored content. Being able to
insert not only banner ads but more importantly, MMS and video ads into
video content, offers operators a viable revenue stream, and has vast
potential for advertisers to reach a highly personalised, targeted
audience, and yet delivering this is far from straight forward,
although that is perhaps the subject for another article
Room for improvement
My personal belief is that there is considerable room for improvement
in Mobile TV as it stands today. After all, there are only a few
channels, with limited appeal. And yet the opportunity is there for the
taking if the industry is able to deliver the rich variety of content
that users have become accustomed to enjoying on the web and TV. A
number of technical hurdles have yet to be overcome to accommodate
different content formats, delivered over different types of networks.
Not to mention the need to tackle the bandwidth issues, the range of
different devices, and the need for enforcement of strict policies, for
example, to protect minors from accessing inappropriate adult content,
While all this may sound like a huge challenge, the reality is that
much of the technology to achieve this already exists, and we are
beginning to see real life examples, like Swisscoms mobile coverage of
Euro 2008, which will blaze a trail for others to follow. Mobile video
offers huge promise for the future and its one that mobile operators
would do well to address sooner rather than later, if they dont want
to initiative to be snatched by their satellite or cable competitors.
