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Mobile Tv: Challenges and Opportunities Beyond 2011 REFERENCE SERIES NO. 3 MAPPING DIGITAL MEDIA: MOBILE TV: CHALLENGES AND OPPORTUNITIES BEYOND 2011 By Ronan de Renesse March 2011 Mobile TV: Challenges and Opportunities Beyond 2011 WRITTEN BY Ronan de Renesse1 Media consumption has changed drastically over the past decade. With TV content now accessible everywhere at any time, consumer behaviour and trends are evolving fast. Online TV is a new platform that brings instant free access to favorite content and signifi cantly disrupted the conventional TV business as a result. Given the success of smart phones and application stores, how will mobile aff ect the TV ecosystem? What opportunities and dangers does it hold? Th is paper addresses these questions while providing an overview of the mobile TV sector. As originally defi ned and designed (linear TV streaming on handsets), mobile TV is on the brink of extinction. Yet, demand for video content on mobile is stronger than ever. Mobile TV will have to be reborn and transformed in terms of format, content and business model. Th e guardians of the TV and mobile ecosystem should facilitate this transformation while protecting customers’ interests. 1. Senior Analyst and Head of Mobile Media at Screen Digest. Mapping Digital Media Th e values that underpin good journalism, the need of citizens for reliable and abundant information, and the importance of such information for a healthy society and a robust democracy: these are perennial, and provide compass-bearings for anyone trying to make sense of current changes across the media landscape. Th e standards in the profession are in the process of being set. Most of the eff ects on journalism imposed by new technology are shaped in the most developed societies, but these changes are equally infl uencing the media in less developed societies. Th e Media Program of the Open Society Foundations has seen how changes and continuity aff ect the media in diff erent places, redefi ning the way they can operate sustainably while staying true to values of pluralism and diversity, transparency and accountability, editorial independence, freedom of expression and information, public service, and high professional standards. Th e Mapping Digital Media project, which examines these changes in-depth, aims to build bridges between researchers and policy-makers, activists, academics and standard-setters across the world. Th e project assesses, in the light of these values, the global opportunities and risks that are created for media by the following developments: the switchover from analog broadcasting to digital broadcasting growth of new media platforms as sources of news convergence of traditional broadcasting with telecommunications. As part of this endeavour, Open Society Media Program has commissioned introductory papers on a range of issues, topics, policies and technologies that are important for understanding these processes. Each paper in the Reference Series is authored by a recognised expert, academic or experienced activist, and is written with as little jargon as the subject permits. OPEN SOCIETY MEDIA PROGRAM 2011 3 Th e reference series accompanies reports into the impact of digitization in 60 countries across the world. Produced by local researchers and partner organizations in each country, these reports examine how these changes aff ect the core democratic service that any media system should provide – news about political, economic and social aff airs. Cumulatively, these reports will provide a much-needed resource on the democratic role of digital media. Th e Mapping Digital Media project builds policy capacity in countries where this is less developed, encouraging stakeholders to participate and infl uence change. At the same time, this research creates a knowledge base, laying foundations for advocacy work, building capacity and enhancing debate. Th e Mapping Digital Media is a project of the Open Society Media Program, in collaboration with the Open Society Information Program. MAPPING DIGITAL MEDIA EDITORS Marius Dragomir and Mark Thompson (Open Society Media Program). EDITORIAL COMMISSION Yuen-Ying Chan, Christian S. Nissen, Dusˇan Reljic´, Russell Southwood, Michael Starks, Damian Tambini. The Editorial Commission is an advisory body. Its members are not responsible for the information or assessments contained in the Mapping Digital Media texts. OPEN SOCIETY MEDIA PROGRAM TEAM Biljana Tatomir, deputy director; Meijinder Kaur, program assistant; Morris Lipson, senior legal advisor; Miguel Castro, special projects manager; and Gordana Jankovic, director OPEN SOCIETY INFORMATION PROGRAM TEAM Vera Franz, senior program manager; Darius Cuplinskas, director Th e views expressed in this publication do not represent, or necessarily refl ect, the views of the Open Society Foundations. 4 MAPPING DIGITAL MEDIA MOBILE TV Contents I. Introduction ............................................................................................................................. 6 II. Technology Primer and Defi nitions ........................................................................................... 7 III. Market Overview ..................................................................................................................... 11 IV. Trends To Look Out For ........................................................................................................... 16 V. Conclusion ............................................................................................................................... 20 Glossary ............................................................................................................................................ 21 OPEN SOCIETY MEDIA PROGRAM 2011 5 I. Introduction Combining two of the most popular and widely available services in the world, mobile and television has always been an interesting proposition. However, after many attempts by mobile operators, broadcasters and handset manufacturers, the business case for mobile TV still remains unproven, even in cases of high levels of adoption, as observed in South Korea and Japan. Th e emergence of high-end handsets with large touch screens and advanced multimedia capabilities has boosted the demand for video on mobile. Yet demand does not necessarily translate into usage or revenues. Several challenges regarding delivering technologies, content availability and business models still need to be addressed. In the advent of the digital switchover and its corresponding digital spectrum dividend, regulators ought to adopt the right decisions to facilitate the roll-out and operation of mobile TV services across Europe. 6 MAPPING DIGITAL MEDIA MOBILE TV II. Technology Primer and Defi nitions Th ere are four diff erent ways in which to deliver video content to mobile handsets: sideloading, Bluetooth sharing, 3G streaming and mobile broadcasting. A vast majority of video content present on mobile handsets has been either transferred from the PC (i.e. sideloading) or from a friend’s handset via Bluetooth. Both delivery methods are particularly popular, simply because it is entirely free to the consumer and it isn’t controlled by anyone. As opposed to sideloading and Bluetooth, 3G streaming (unicast) and mobile broadcasting are designed for ‘anywhere anytime’ content access rather than content portability. Both delivery mechanisms in turn defi ne the breadth of content that can be delivered and whether the business model applies to niche or mass market relationships with consumers. Unicast for Niche Market Unicast mobile TV follows a one-to-one communication process where content is directly transmitted to mobile handsets through conventional cellular networks. Multimedia streaming applications are extremely demanding in terms of network resources. Although third generation (3G) cellular networks have been deployed in most markets, this would never be enough to accommodate a mass market. Most 3G cells can sustain approximately 16 simultaneous mobile TV users for the poorest video streaming format (i.e. 64Kbps or 6.5 frames per second). However, the number of available channels does not aff ect network activity. Consequently, unicast mobile TV can off er an unlimited number of channels which is ideal to address the long-tail market. Figure 1. Unicast (one-to-one) 2.5G Content 2.75G Owner Operator 3G 3G+ OPEN SOCIETY MEDIA PROGRAM 2011 7 Broadcast for Mass Market Broadcast mobile TV is a one-to-all communication process where content is broadcast to mobile handsets. Th e main advantage of this approach is that it can accommodate an infi nite number of users, making it more appropriate for mass market conditions. However, the number of channels transmitted over the mobile broadcast network is limited. Five to 50 channels can be broadcast to mobile devices according to the amount of frequency spectrum made available for mobile services as well as the quality of those services. Additionally, there is no return path, so interactive TV is not possible without some additional communication channel. Figure 2. Broadcast (one-to-all) DVB–H DMB Content Operator MediaFLO Owner ISDB–T DAB MB MS Th ere are numerous mobile TV broadcast technologies and the major ones are DMB, DVB-H, ISDB-T – all nationally open standards – and MediaFLO, a proprietary system of Qualcomm. What these systems have in common is the potential to reach mobile phone owners without the network operator being involved. However, the investment required to reach an unproven market is considerable, and a foray into mobile TV could prove a very costly gamble
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