Commentary
Will Mobile TV, Such as Verizon Wireless's New V CAST Mobile TV Service, Succeed?
The results of a European study released last month at 3GSM showed that many mobile TV subscribers switched off the service. Users complained of the high cost and spotty quality. Granted, the technology over there is different. Many providers use the DVB-H standard versus the MediaFLO network used by Verizon Wireless here in the US. But dollars are dollars. Verizon's $15-per-month charge may prove too steep for many.The results of a European study released last month at 3GSM showed that many mobile TV subscribers switched off the service. Users complained of the high cost and spotty quality. Granted, the technology over there is different. Many providers use the DVB-H standard versus the MediaFLO network used by Verizon Wireless here in the US. But dollars are dollars. Verizon's $15-per-month charge may prove too steep for many.I am skeptical. Very skeptical. According to the Tellabs study, 45% of users cited price and 25% of users cited quality as the reasons for abandoning the technology. What's worse, the number of former mobile TV subscribers outnumbered the existing mobile TV subscribers by 19%. Yikes.
Though other services such as MobiTV have been around for years, Verizon and Cingular have chosen Qualcomm's MediaFLO technology to deliver mobile TV. As today's limited launch indicates, spectrum in the 700 MHz band in which the network operates is not easy to come by. That's part of why Verizon only lit up 20 markets today, most of which are west of the Mississippi. As the existing users of that television broadcast spectrum clear out, Verizon will roll-out more markets. But will subscribers bite?
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Verizon Wireless is betting a big chunk of change that they will. For its part, the launch will include 8 channels running 24/7 with new, video-on-demand and "Golden Oldies" programming. The content providers are CBS, Comedy Central, ESPN, Fox, MTV, NBC News, NBC Entertainment, and Nickelodeon. To be sure, a multitude of curious people will sign up for a month or two. But with many US wireless bills already over the $50 mark, is there room for another $15 (or $25 a month bundled with messaging and web browsing) in our collective budgets? That's tough to say.
Forgetting cost for a moment, do people really have the interest or the time? When are we going to watch mobile TV? Obviously not while we're driving. We're definitely not going to choose to watch TV on our handsets over our big-screen TVs. I guess airports, PTA meetings, work, and other areas where we have time to kill would be ideal.
Even so, I can't see mobile TV moving beyond mobile snacking, whereby people watch 3- to 5-minute segments at a time rather than full-length shows. I, for one, don't know if I want to spend $15 a month to satisfy my video snack cravings.
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