Going Mobile: Wireless TV Market in the UK Takes Off
This data suggests that more variety is coming, making the landscape of value added services and content sources all the more complicated for operators to manage and offer, and for subscribers to choose from.
Money matters
The last—and possibly the most important—goal of these studies and trials is to attempt to clear up the matter of making a return on operator investments. What are the appropriate business models, and what are customers willing to pay for their mini-TV service? Will subscribers pay to receive on their 3G phone screens what they’ve already paid to get at home on their "regular" televisions? Most services begin as Sky Mobile TV did, with a low- or no-charge service that ended on January 31. It remains to be seen how many customers will pay the £5 (~$8.90, €7.38) per month for each of the Sky Mobile TV packs.
A BT trial in the London metropolitan area found that two out of three subscribers said they would be willing to pay £8 pounds (~$14) per month for the total all-you-can-see-and-hear service (includes broadcast mobile TV and radio). The same study concluded that prices in the £11.5 ($20) per-month range for a standalone mobile television service would not fly.
Of course, the same business models that are available on the Internet may work in the mobile TV market. McQueen points out that there are mobile options for which the operator can charge. For example, when subscribers interact with a content source, to vote or to place a bet as they can with their digital television services, the mobile operator can provide more than "just the pipe" and reap the revenues.
Stay tuned
Given the high growth rate of the UK 3G market, the high consumer interest in multimedia, and the high budgets operators have already spent on their 3G networks, the one thing we can be sure of is that the testing will continue. In addition, trials in other parts of Europe are underway, and within 12 months the fuzzy mobile TV picture should be a whole lot clearer.
Beyond the 12-month horizon, it’s hard to tell if subscribers will really change their viewing habits. "If they do, it will be at least three or four years before the technology issues sort themselves out," predicts McQueen.