Abstract
“The iPhone is set to have a significant impact on the mobile TV market - before mobile broadcasting technologies, such as DVB-H, have been deployed extensively.” Dr Alastair Brydon , Analysys Mason Associate.
Product overview
Many mobile network operators (MNOs) hope to generate revenue from mobile TV and video services, using a combination of 3G and dedicated broadcasting networks (for example, DVB-H or MediaFLO). However, it may take many years for broadcasting networks to be extensively deployed worldwide. The iPhone can already offer TV and video services, without the use of either mobile broadcasting networks or 3G/HSPA, and challenges widely held assumptions about how to deliver a compelling mobile TV proposition to consumers. Building on the very latest market data and consumer research, this report considers the impact that the iPhone will have on the emerging mobile TV market and discusses the lessons that it brings.
The initial take-up of the iPhone has been constrained, primarily by Apple' s market entry strategy. The report considers how this strategy is likely to change and the effect that this will have on the development of the global market for mobile TV. The report examines the strengths and weaknesses of key features of the iPhone and its services, including the innovative use of sideloading and WLAN; the increasing availability of TV and video content from a variety of sources; the evolving capabilities of iPhone devices; and the pricing models being adopted worldwide. It identifies the actions that Apple (and other mobile handset vendors), MNOs and TV broadcasters need to take in order to maximise the short-term opportunities from the iPhone, or to remain competitive with iPhone services.
iPhone shows the way for mobile TV answers your key questions:
- What impact is the iPhone having on the mobile TV industry, and what impact could it have?
- What has been the take-up of the iPhone so far, and what have been the effects of limited geographical scope and mobile operator exclusivity?
- What future strategies will be adopted by Apple, and what will effect will they have on iPhone penetration worldwide?
- What does the latest consumer research tell us about the use of the iPhone for mobile TV and video services?
- What service elements are needed to deliver a compelling mobile TV and video proposition, and what are the strengths and weakenesses of the iPhone and its current services?
- How can the iPhone deliver mobile TV and video content, without requiring mobile broadcasting capability or 3G?
- What TV and video content is available worldwide for the iPhone, and how will this develop?
- What are the roles of iTunes, YouTube and catch-up TV services offered by broadcasters, DVD ripping and Slingbox?
- How does iPhone service bundling and pricing help to support mobile TV, and what improvements are needed?
- What improvements to the iPhone handset and iPhone services are required to further enhance mobile TV and video services?
- What actions should Apple (and other mobile handset vendors), mobile operators and broadcasters take to seize opportunities for the iPhone, or remain competitive with it?
Who should read this report
- Mobile network operators: senior executives, business planners and network planners, to help them fundamentally review their mobile TV strategies, and understand the short-term opportunities or threats from iPhone services
- Handset vendors: senior executives and product managers, to assess the potential impact of the iPhone on the mobile TV market worldwide
- Analysts and investors: to understand the impact that the iPhone will have on the mobile TV market.
Table of Contents
0. Summary
1. The iPhone' s impact on mobile TV and video will increase as Apple' s distribution strategy matures
- 1.1 Apple has distributed the device in a limited number of markets
- 1.2 Exclusive MNO agreements have constrained the iPhone' s market share and kept prices high
- 1.3 Changes to Apple' s strategy, some of which are already underway, could increase iPhone' s market share
2. The iPhone is well suited to deliver mobile TV and video
- 2.1 The iPhone user interface and the services available via the device are compelling
- 2.2 Several consumer studies have shown that iPhone users are particularly likely to access mobile TV and video content
3. A rapidly increasing range of TV and video content is available on the iPhone
- 3.1 iPhone users can access TV and video content from a variety of sources, using several distribution methods
- 3.2 iPhone users are able to easily purchase and view iTunes video content
- 3.3 The iPhone provides access to streamed video services, including YouTube and catch-up services from broadcasters
- 3.4 Enthusiasts already sideload DVDs and recorded TV programmes to their iPhones
- 3.5 Slingbox, which is supported on several smartphones, is not yet available on the iPhone
- 3.6 Improved TV and video applications will be enabled with forthcoming 2.0 iPhone firmware
4. The iPhone supports multiple delivery methods for mobile TV and video
- 4.1 The iPhone uses a multi-distribution approach, which will be further improved with 3G capability
- 4.2 Sideloading plays a vital role in the provision of compelling mobile TV and video services on the iPhone
- 4.3 The iPhone' s support of WLAN access brings significant advantages for users wishing to access mobile TV and video services indoors
- 4.4 The arrival of the HSPA-enabled iPhone is expected in 2008, and will complete the iPhone' s arsenal of mobile video and TV delivery channels
5. The impact of the iPhone on the mobile TV market depends on a number of factors
- 5.1 The iPhone allows MNOs to support high mobile TV penetration, without waiting for mobile broadcasting technologies
- 5.2 The iPhone has a window of opportunity in the mobile TV market and its impact depends on future iPhone developments
- 5.3 The iPhone could have a significant impact on the development of the mobile TV market
- 5.4 The iPhone could remain a niche product for mobile TV and video delivery
Actions
List of figures and tables
- Figure 0.1: Distribution methods for mobile TV and video content accessible with the 3G iPhone in 2H 2008
- Figure 1.1: Global cumulative sales of iPhones, June 2007 to December 2008
- Figure 4.1: Distribution methods for mobile TV and video content accessible with the 3G iPhone in 2H 2008
- Figure 5.1: Comparison of 3G network traffic required to support 20 minutes of mobile TV usage per user per day for a number of implementation options
- Table 1.1: Details of iPhone market launches
- Table 1.2: Customer bases of iPhone partner MNOs as a proportion of the total mobile user base in all six markets, December 2007
- Table 1.3: iPhone handset pricing at launch
- Table 3.1: Sources of TV and video content available for the iPhone
- Table 3.2: Examples of TV and video content available from the iTunes Store
- Table 3.3: Bitrates used for video content available on the UK iTunes Store, May 2008
- Table 3.4: Examples of PC cards allowing free-to-air TV broadcasts to be recorded and then sideloaded to the iPhone
- Table 4.1: Distribution methods for mobile TV and video content accessible with the 3G iPhone in 2H 2008
- Table 4.2: iPhone tariffs available in all countries
- Table 5.1: Key criteria needed for the iPhone and iPhone services to have a significant impact on the mobile TV market over the next two years
