News and Information About Mobile TV and Video Over Cellular Phones
Earlier this week, a host of traditional media providers fought for the spotlight with announcements regarding planned mobile TV content, leaving little doubt that there will be real options out there for consumers, when the medium goes mainstream.
News Corp., the international powerhouse that owns FOX TV, along with several cable outlets and countless print media, presented its new mobile content portal, Mobizzo. Initialy, the download site will sell ringtones and graphics, but also has plans to open a studio solely for producing 'mobisodes' of serial video content. The FOX brand is rich with potentially marketable content, from The Simpsons and Family Guy, to American Idol and 24.
Meanwhile, Sprint Nextel and MTV made public their new partnership, which will provide exclusive content on the Sprint TV EV-DO network. Sprint subscribers will have access to music and programming from MTV, VH1, and CMT, along with clips from Comedy Central's "The Daily Show," and MTV's "Laguna Beach." It also appears that streaming radio will be available from the same family of networks.
Finally, CBS unveiled its plan to provide two different mobile video alert packages, which will deliver a half dozen alerts a day, geared to the user's interests (news and entertainment are among the initial options). The network also has plans to develop mobile soap operas, in a three- to five-minute format.
We've seen an interesting twist in the race to provide (and own) mobile TV delivery standards in a nation that hadn't yet popped up on the scene-- India.
While the Western World waits for private companies to work on mobile TV technology, and heads toward an imminent battle on that front, the Indian Space Research Organisation (India's version of NASA), is working on its own solution. The eventual outcome as to who will run and/or provide service is unclear, but the government has its sights set on a not-yet-invented satellite delivery system.
India is pouring resources into the project, a next-generation satellite capable of distributing television and other multimedia content to mobile devices. The R&D process is expected to take at least two years, a timeframe that is tied to the design of an "unfurlable antenna," something that hasn't been perfected.
At any rate, this story seems interesting as an alternative to the networks currently being pushed by a handful of varying factions in the telecom industry. The idea of a satellite able to provide full service and coverage to an entire market is awfully intriguing... and seems like it would solve the problem of incompatible standards and consumer confusion.
Reuters has an insightful summation of mobile TV in Europe, complete with a new political twist.
The various factions made up of handset makers, telecom operators, and broadcasters all vying for their own standard do agree on one thing-- they want help from the European Union. This week, the Broadcast Mobile Convergence Forum got together to urge the EU to set aside a specific radio band for mobile TV service across the continent.
"Minimising the cost of service means minimising the device costs. To get to the economies of scale to achieve these low integrated devices costs, we need coordination of policy and harmonization of spectrum," said O2 Spectrum Policy Manager Simon Wilson. In other words, more clarity and less confusion in the industry are needed before a mass roll-out can be economically feasible.
There's a degree of irony in this, though, as the diversified actors fight together to gain consistent spectrum, without an agreement on a broadcast network standard. Meanwhile, the regulators are hesistant to do anything at this point, fearing they'd have an undue influence on an industry in its infancy.
It sounds like the increasingly convoluted market will decide...
An interesting development Down Under could be a model for mobile TV development elsewhere in the world (specifically the United States).
The Australian Interactive Media Industry Association (AIMIA) is spearheading a fund-raising initiative intended to boost the nascent mobile TV industry in Australia. AIMIA intends to gather money from venture capalists, and the government, and funnel it into local ventures operated by "small garage niche developers."
This kind of committment by a major association focused on content and interactive media is promising, and indicates an awareness that the technology could be quite valuable for all involved... if there's a degree of cooperation from the very beginning.
In fact, one Ericsson executive noted that "the growth of the mobile TV sector would be undermined if carriers, content providers and media outlets battled each other for ownership of the customer."
It's fascinating to watch this battle shape up so differently in different parts of the world.
The 3GSM Congress is over, but the buzz over mobile TV is still reverberating from Barcelona. Electronics Weekly spoke with three influential executives while at the conference, who all agreed on one thing-- the power of DVB-H as an industry standard.
"DVB-H is going to be the big one," said Berardino Baratta, a general manager with Freescale Semiconductor. "The prediction is it's going to have 40-50% of the market. The traditional operators are going to license access."
As we've mentioned on MobileTV.info in the past, at least four different standards are beginning to emerge, and an eventual power struggle could harm the industry. In addition to DVB-H, innovators are looking into DAB technology, Qualcomm's MediaFLO network, and IPWireless's TDtv.
For what it's worth, a senior marketing director at Qualcomm predicts that "the world has room for multiple standards." Is Qualcomm already positioning itself to accept a complimentary role? On the other hand, the Phillips Semiconductors people are talking up DVB-H as the only true solution, citing a bigger community of support and potential problems with 3G and EDGE networks swelling with video content.
That 40-50% mark is interesting, and probably represents the very early stages of the market. It seems inevitable that at least one of the standards will fail; will the eventual result be a market dominated by one standard, or split evenly among two or three?
There's some good news for those who've shown concern over the rapidly divergent world of mobile TV. The hardware might not care what network it's on.
In the United States (if not in Europe) TV-enabled phone manufacturers will have the opportunity to use Frontier Silicon's Kino 2 chipset, a wireless receiver that does not discriminate:
Frontier says Kino is the only available T-DMB receiver with the flexibility to take care of the diverse requirements of networks worldwide.
That's a very positive development in the mobile TV world, where increased atomisation is raising questions over the health of the budding industry. Frontier, described as "the market leader in solutions for digital radio and mobile TV," has already shipped Kino 1 chips to Korea in the wildly popular Samsung B2300. The Kino 2 is seen as an improvement not only for the typical reasons-- size, power consumption, cost-- but also for its more innovative feature, its network flexibility. The multi-band chip will allow devices to operate on either the DMB-T or DAB standard, eliminating a good deal of consumer angst.
It would seem that, with the hardware question moot, the manufacturers can be removed from what was an increasingly complicated equation.
The gauntlets have been thrown down in Britain's battle over mobile video standards, with three distinct corners emerging in the ring.
In this corner, the newest entry, wearing orange trunks (sorry)... UK service provider Orange is teaming up with American firm IPWireless to support the TDtv standard. Meanwhile, Nokia and Sony Ericsson are working on a DVB-T solution, while VirginMobile and BT have opted for the less-well-received DAB technology. It's a very distinct horse race between three well differentiated standards.
The DVB-T solutions seem to be the most technologically promising, while TDtv provides an alternative for carriers who want to retain ownership of current networks. And this author's summation concurs with our earlier speculation as to Microsoft's and Virgin's motive for backing DAB:
Analysis suggests that DAB will not deliver as technologically advanced service as DVB-T or TDtv. However, DAB does appear to have the advantage in terms of time-- BT plans to launch a commercial mobile TV service this summer.
Will it get to this point here in the U.S.? The degree of competition vs cooperation will be an fascinating balancing act to keep tabs on.
Here's an easy little read, best digested as an example of the kind of local media coverage Mobile TV is beginning to receive.
This article, clearly geared toward the general public, is very positive, and contains the following testimonial from a college student: "That's pretty cool; I have to say, I'm impressed." The story revolves around MediaFlo, describes the company as "the company behind new mobile television technology," and pushes the idea that "people who view mobile TV always end up wanting it."
It'll be interesting to continue to monitor these sorts of stories in hometown newspapers nation-wide, as the technology takes hold, and as corporate telecoms begin their PR efforts.
Not coincidentally, San Diego is the home of telecom giant Qualcomm... MediaFlo's financial backer. ;)
Telecom analysts at the 3GSM Congress agree with our contention that the confusing state of the mobile TV industry could affect the public's perception of it, and harm initial consumer acceptance.
The current mish-mash of standards, technologies, and business models are slowly bringing too much diversity to the entire industry, and dilluting the potential breakthrough power of any one approach. We've pointed to 2006 as the year that will see things shake out, and when winners and losers will be identified. But some observers wonder if that struggle, in and of itself, will damage the market.
According to Rolando Balsinde, global head of telecoms at consultants McKinsey, diversity will mean uncertainty. "Atomisation will mean subscale effort and subscale investment... This is something industry must avoid," he said.
Balsinde makes a good point, although a lot of the extreme atomisation we're seeing in Europe hasn't reached a fever pitch in the United States yet. One of the benefits we see in North America is the relative uniformity of frequencies; that is not the case in the spectrally fractured European Union. It's also worthwhile to note the growing strength of the DVB Consortium, as well as the movement to unify instant messaging standards across carriers. Both phenomena indicate a willingness to cooperate, and the knowledge that doing so is necessary.
The folks over at Techdirt have been "less than bullish" on Mobile TV for quite a while now, and have a very thoughtful reaction to one of this week's hot topics at the 3GSM Show in Barcelona.
Yesterday, we reported on MTV's stance that advertising will eventually help drive mobile content, because "free is always good for the consumer." The skeptics take it a bit further:
It's good that some people are starting to realize this, but it's not a question of whether or not free is the right model, but a recognition that it's likely to be the only model.
That's an interesting assertion... and one that does make a lot of sense. In a market that is sure to be complex, the content producers and service providers able to agree on the best way to recruit new consumers will most likely gain an advantage during the early stages of the technology. It's easier to ask people to adopt something new if it's free.
Techdirt also questions the value of live mobile video. The rise of DVRs, and the increasing growth of "place-shifting" via upstarts like Slingbox and Orb might make access to live TV irrelevant; instead, syncing mobile devices to our home entertainment system (a la the Video iPod) will be the way most folks access their mobile content.
Ultimately, the value of live programming could determine the outcome. Is at-the-moment news and/or sports coverage enough to drive demand? Or will we be content downloading "Dancing With The Stars" from home and watching it on our mobile TV devices the next day? Or will another, entirely unforeseen medium/genre evolve?
The experts huddled in Barcelona this week threw out another interesting wrinkle in the discussion of mobile TV's future-- advertising.
MTV's chief digital officer, Jason Hirschhorn (not surprisingly, this is the first time MTV has been a presence at 3GSM), told the assembled masses that "adoption of an advertising-supported model (is) vital for mobile video to truly become a mass market medium."
Content was a hot topic on Wednesday at the conference, with Hirschhorn's remarks making waves. Subsidizing video content with advertising revenue does make sense, and benefits consumers who don't mind a quick (i.e., a good deal shorter than the typical 30-second TV spot) commercial in exchange for cheaper entertainment. The content providers also spent time buzzing about direct-to-consumer sales; the entertainment types are hoping that they'll get a good chunk of the cash generated by on-demand video... before network providers assume control of live video telephony.
In any event, the presence of so many content providers at this year's 3GSM show highlights the promising future for producers and consumers of mobile TV.
In the shadow of the '06 3GSM Show, we have a report from Strategy Analytics and more stunning predictions from some very excited innovators convinced that mobile TV is about to explode.
For starters, Strategy Analytics sees a $5 billion sales opportunity in the field in 2006. This year. That's not bad for such a nascent technology. The real good news, though, comes in their more extended predictions-- a sixfold increase in those revenues by 2010. That number, estimated at $30 billion, is contingent on what SA refers to as "megavendors" recognizing the opportunity and working together with the handset vendors on mobile TV solutions.
Well, we're already seeing that happen with Texas Instruments and Intel joining forces with Motorola and Nokia on a DVB-H initiative, with their sights set on setting a North American standard. It doesn't seem like much of a stretch for it to continue, especially given the number of vendors and start-ups searching for an edge through vertical partnerships.
Other expectations include a million units sold in Europe this year, with the United States and China following in 2007. Regardless, most folks at the 3GSM event agree that we'll see a rapidly evolving industry throughout 2006, as the technology nears maturity:
"There will be real commercial deployments and that is going to change the landscape very much. If it goes well in those early markets, I think [adoption and rollout] is going to grow very fast," Levy said from the 3GSM show floor. "Going from last year's 3GSM to this one, I see all the different DVB-H clones everywhere in the different places, a lot of software offerings, a lot of commercial access offerings. You're probably going to see who are the winners and who are not this year. Toward 2007, it is going to go high volume, and the winners are going to take that."
Place your bets now...
We heard another interesting Valentine's Day development out of Barcelona yesterday, when Microsoft's Steve Ballmer and Virgin's Richard Branson teamed up to declare their love for mobile TV, and each other at the 3GSM conference.
It's good to see two of the world's most successful conglomerates join together on a mobile TV effort, although one wonders if they've hitched their ride to the right horse. The service the three companies have agreed to sponsor and support is known as Movio, and there are already rumblings that it's not as good as DVB-H based services. Movio relies on DAB (Digital Audio Broadcasting) technology to transmit IP data packets, but has significant capacity limitations, due to the frequencies it operates on.
DVB-H, on the other hand, is able to handle greater capacity with more diverse signals, and requires less power from the receiving antenna. Other standards set to operate on current 3G networks (TDtv, Media FLO, etc) are also in the mix.
With so many options, it seems odd that Microsoft and Virgin opted for a delivery system that appears to be trailing the rest of the field. And, on top of the apparent capacity issues, the decision to use DAB alienates the world's largest handset manufacturer, Nokia (which is working with British telecom firm O2 on establishing DVB-H service).
From here, the only visible rationale is that DAB will likely help Movio enter the market more quickly, since there is less infrastructure work to be done. Perhaps Ballmer and Branson have placed tremendous importance on being the first-mover in the new market? We'll stay on top of this.
Samsung, on the heels of unveiling it's new eye-catching SGH-P900, used this year's 3GSM show in Barcelona to announce an entire lineup of seven new mobile TV phones.
Notably, this family of phones is not limited to any one broadcasting standard; together, they support T-DMB (Terrestrial), S-DMB (Satellite), DVB-H (Handheld) and Media FLO. The specific models are geared towards a wide spectrum of users and usage, with unique features including a 5 mega-pixel screen, a 3D game engine, and "the world's slimmest mobile TV phone."
In form and function, Samsung is positioning itself well by rolling out hardware in time to embrace the services expected to go commercial later this year (in fact, the P900's capabilities will be highlighted as a link to video content directly from the FIFA World Cup in Germany this summer). The company is already in talks with unidentified operators in the United States... will we be watching Super Bowl XLI on our cell phones? Can Samsung can give us a 52-inch screen?
This year's 3GSM World Congress opened in Barcelona yesterday, amid industry leaders, national representatives, media types, and a record-breaking 962 exhibitors.
The show, billed as the world's premiere "mobile event," should be a major stage for emerging mobile TV products. Microsoft CEO Steve Ballmer always draws a crowd, and his initial presentation yesterday was no different. The subject? Microsoft's new Windows Mobile software, which takes two forms-- Office Communicator Mobile, for the business world, and Windows Live Mobile, for the general public.
Microsoft, among other players in the field, is betting that consumers will do more and more things with their mobile devices-- be they cell phones, handhelds, laptops, etc. And the biggest buzz at the conference's opening day surrounded developments in the DVB-H (Digital Video Broadcasting-Handheld) world.
Two hundred and seventy firms have joined together to form a consortium supporting the technology, and mobile TV software and/or hardware is the centerpiece of at least 30 booths this week at 3GSM. To add to the furor, Peter McAvock, the executive director of the DVB group, predicted that "tests launched in France, Finland, Germany, Britan and Italy will soon conclude and the first to launch commercially will doubtless be the Italians."
The Italians? We'll certainly have more news from Barcelona as the week goes on.