Abstract
Overview
TV has been described as the "75-year-old killer application." In a context
where Mobile network operators (MNOs) are looking for the few applications
which will finally accelerate 3G adoption, it is understandable that Mobile TV
would draw so much attention. Still, the question remains: Could Mobile TV be
the application that finally lifts 3G? The answer is hardly certain. This
Report examines the business case for Mobile TV from the Mobile operator's
perspective, assessing underlying technologies, the place of the MNO in the
value chain, the optimal revenue models, the role of advertising, and the
overall revenue opportunity for MNOs. We also build the case for future Mobile
TV revenue generation through a case study analysis of current Mobile video
services.We ask (and provide answers to) the following questions:
Can broadcast Mobile TV rescue 3G?
If operators are thinking of Mobile TV as an application that will act as a
catalyst for 3G adoption, then it may be just what they're looking for.
Can unicast carry Mobile TV?
Unicast is already carrying Mobile TV, but as subscribers grow so will the
need to shift to a broadcast solution.
Which technologies are most likely to take off?
All Mobile TV standards currently being rolled out are likely to gain
traction, although some will become more ubiquitous than others.
Which broadcast Mobile TV model is optimal for a mobile carrier?
The optimal model for Mobile TV is one that enables operators to provide
broadcast Mobile TV with existing spectrum.
Does Mobile TV need the MNO? How acute is the risk of disintermediation?
In the short term, the quickest route to Mobile TV ubiquity is via mobile
handsets.
How will MNOs make money from Mobile TV?
For operators, much will depend on the cost of content, the amount that
subscribers will pay, the level of Mobile TV uptake, and the scope of the
value chain they own. It is entirely possible that MNOs will see very low and
even zero margins directly from Mobile TV subscriptions.
What is the Mobile TV revenue opportunity?
Surveys indicate that Mobile TV will be a popular service with subscribers.
Particularly in cases where surveys are based on service pilots, end user
feedback has generally detailed over 60 percent of participants would pay for
Mobile TV services.
Mobile Network Operators
This report will help you understand the technology and content challenges
that await a Mobile TV launch. Use our Mobile TV growth scenarios and
forecasts to size the market opportunity, as well as our Case Studies to
assess best practices and develop your go-to-market strategy.
Content Creators - Producers
This report will help you evaluate new market opportunities and develop
strategies to increase revenue and viewership of your content.
Broadcasters Aggregators:
This report will help you evaluate the impact of the new technology and
analyze the competition to develop an offensive growth strategy.
Vendors
This report will help you understand market dynamics and assess the needs of
both Mobile TV carriers and content providers. Use our Mobile TV forecasts to
develop sales plans and identify key market opportunities
Target Audience
Mobile Network Operators
This report will help you understand the technology and content challenges
that await a Mobile TV launch. Use our Mobile TV growth scenarios and
forecasts to size the market opportunity, as well as our Case Studies to
assess best practices and develop your go-to-market strategy.
Content Creators - Producers
This report will help you evaluate new market opportunities and develop
strategies to increase revenue and viewership of your content.
Broadcasters - Aggregators:
This report will help you evaluate the impact of the new technology and
analyze the competition to develop an offensive growth strategy.
Vendors
This report will help you understand market dynamics and assess the needs of
both Mobile TV carriers and content providers. Use our Mobile TV forecasts to
develop sales plans and identify key market opportunities
Case Studies Included:
Verizon Wireless TU Media 3 Italia Vodafone UK Reliance IndiaMobile
Table of Contents
Executive Summary
Section 1: Is Mobile TV Ready?
- 1.1 What Mobile TV Will Become
- 1.2 Sizing Up the Standards: Challenges All Around
Section 2: The Mobile TV Business Case: Can Mobile TV Save 3G?
- 2.1 Rescuing 3G: Still Searching for the Killer App
- 2.2 Mobile TV Business Models: Searching for the Right Formula
- 2.3 Value Chain Scenarios and the Impact on Revenues
- 2.4 Does Mobile TV Need the MNO?
- 2.5 Mobile TV Business Model Analysis: Lessons from Case Studies
- 2.6 The Cost of Mobile TV
- 2.7 The Cost Side: Facing the Content Challenge
- 2.8 The Cost Side: Should MNOs Build Broadcast Networks? Section 3: Sizing
up the Mobile TV Opportunity
- 3.1 The Demand Side: Summary Review of End User Surveys
- 3.2 Where There Is 3G, Mobile TV Will Follow
- 3.3 The Forecast
- 3.4 Mobile TV: 3G Savior? Case Studies
Appendix: Pyramid Research End User Research - Demand for Mobile TV in Brazil, Russia, India, China, and the UK
List of Exhibits
- Exhibit 1: Unicast Over Cellular Network
- Exhibit 2: Monthly Data Usage per Subscriber
- Exhibit 3: Broadcast Mobile TV Network
- Exhibit 4: Interactivity in Broadcast Mobile TV
- Exhibit 5: Mobile TV Standards and Specifications
- Exhibit 6: Mobile TV Value Chain: Content
- Exhibit 7: Mobile TV Value Chain: Infrastructure
- Exhibit 8: Value Chain: Entities and Their Roles
- Exhibit 9: External Broadcast Network Model
- Exhibit 10: MNO Content Owner Network Model
- Exhibit 11: MNO Broadcaster Model
- Exhibit 12: MVNO Content Network Model
- Exhibit 13: Aggregate Survey Data: Mobile TV Monthly Subscription
- Exhibit 14: Comparison of Current MNO Video Services (Converted to US$)
- Exhibit 15: Cost of Infrastructure Ownership for MNOs
- Exhibit 16: MNO Margins per Mobile TV Subscriber
- Exhibit 17: Propensity to Pay for Mobile TV
- Exhibit 18: Forecast High and Low Levels of Mobile TV Adoption as a
Percentage of 3G Subscriptions, 2006- 2010
- Exhibit 19: Global Broadcast Mobile TV Subscribers, 2006- 2010
- Exhibit 20: Global Broadcast Mobile TV Revenues, 2006- 2010
- Exhibit 21: Ratio of Global Unicast to Broadcast Mobile TV Subscriptions,
2006-2010
- Exhibit 22: Total Global Unicast/Broadcast Mobile TV Subscriptions, 2006 -
2010
- Exhibit 23: Technology Market Share, 2010
- Exhibit 24: Broadcast Mobile TV as a Percentage of Global Data Revenues,
2010
- Exhibit 25: Mobile TV MNO Margins
- Exhibit 26: 3G Subscribers as a Percentage of Total Mobile Subscribers
- Exhibit 27: Comparison of Current TV / Video Monthly Pricing, US MNOs
- Exhibit 28: Forecast VCAST Subscribers, 2005 - 2006
- Exhibit 29: MNO Market Share, Italy 2003 - 2005
- Exhibit 30: Mobile Voice and Data ARPUs, 2005
- Exhibit 31: UK Mobile Operator Market Share, 2005
- Exhibit 32: UK Mobile TV Channel Comparison
- Exhibit 33: Vodafone Subscriber Network Transition and the Effect on ARPUs
- Exhibit 34: Mobile TV End User Survey:"Would you subscribe to Mobile TV?"
- Exhibit 35: Mobile TV End User Survey: Price Elasticity for Mobile TV in
Brazil
- Exhibit 36: Mobile TV End User Survey: Price Elasticity for Mobile TV in
Russia
- Exhibit 37: Mobile TV End User Survey: Price Elasticity for Mobile TV in
India
- Exhibit 38: Mobile TV End User Survey: Price Elasticity for Mobile TV in
China
- Exhibit 39: Mobile TV End User Survey: Price Elasticity for Mobile TV in
the U.K.
