Milestone Day for Mobile Video

Julie Ask | January 09, 2007, 03:20 AM

Today was a big day for mobile video in the US. Verizon announced that they will launch a broadcast video service (MediaFLO) in the first quarter of 2007 while Modeo (Crown Castle) announced the launch of their beta DVB-H service in New York City. And, not to be upstaged, MobiTV sneaked in with an announcement about the new, interactive features added to their service. It’s a lot to absorb in one day let alone in a market where only one or two percent of mobile subscribers have video subscriptions on their cell phones.

My colleague Joe posted a blog on the MediaFLO launch with Verizon. He answers one of the questions that I am often asked: “Why would I want this service? Isn’t broadcast just like what we had 20 years ago with the Sony Watchman? And why do I have to pay now?” So the answer is “kind of.” Except now, it’s on this small handheld device that you carry with you anyway and you get access to some exclusive content that would never have been broadcast in the past. Joe also makes a good point about the on-demand expectations DVR-addicted consumers now have. At 4:18pm, I probably want a two-minute news summary. Consumers should like the price of broadcast if the economics that MediaFLO is promising trickle down to the consumer. There is content – maybe not the OSU game last night if you’re an Ohio fan – that consumers would like live, but not if they only have two minutes. A service like iTunes gives you a choice – summary or full length program. Verizon will do some of this initially at least by continuing to offer their Vcast service while rolling out their new broadcast service.

Modeo is interesting separately. Certainly they are rolling out a technology (DVB-H) that will be more popular globally and has been rolled out in some countries in Europe. They are launching a beta without a wireless carrier in the US. One might ask … “why do they need a carrier?” … the answer is “they don’t.” The technology could go into any one of many CE devices or a laptop computer. Someone, however, is going to have to go out and sign consumers up to a subscription service (unless it’s going to be offered for free through ad-sponsorships – unlikely though without a proven business/business model in a nascent market).

MobiTV’s announcement, however, sheds more light on the vision of TV on a cell phone. When people ask, “how is it different than my Watchman from the eighties?”, this answers the question, partially. A cell phone allows for interactivity. It’s a two-way communication device that offers a direct response mechanism to advertisers and consumers.