MOBILE TV REVENUE IN North America will continue to come primarily from subscription for at least the next two years, according to research firm Informa Telecoms & Media.
The report, called Mobile TV: Strategies, Business Models & Technologies, says the advertising business model will be slow to gain prominence, but by 2013 nearly half of the mobile video revenues will come from advertising. It also says that the future of mobile TV will not be just broadcast or 3G but will be a mix of technologies matched to a mix of audience experiences.
Confusion over standards will continue to bog down growth in the U.S., but momentum behind ATSC-MH is expected to boost the market for mobile TV in North America, the report continues. Growth will be strongest in the “pioneering markets” of South Korea and Japan before the rest of the world starts to catch up around 2010/2011. Despite some success in Italy and Austria, Europe is not predicted to see rapid growth in mobile TV until 2009.
“As the owner of the marketing and billing relationship with subscribers, operators are in the best position to offer mobile TV services”, said Shailendra Pandey, senior analyst, in the press release.
“It seems that a good approach for mobile operators will be to start with a free-to-air business model which also involves minimum capital investment. Once user uptake of services starts to grow, operators can then think of developing new revenue models that can be established on top of the free-to-air content platform”.
