Monday, January 4, 2010

NEWS: Mobile media on the rise

PETALING JAYA: Mobile media is poised for explosive growth in Asia, including here in Malaysia, creating new revenue opportunities for broadcasters, wireless operators, content providers, advertisers and companies with complementary services and technologies.

Industry analysts recognise the vast potential of mobile media services, predicting that the global market will surpass US$90bil (RM306bil) by 2018.

Consumer support for mobile media is also on the rise.

The Asia-Pacific region is forecast to account for more than 50% of the global mobile TV subscribers by the end of 2013, with countries such as Malaysia, Taiwan and Japan emerging as the potential leading markets in the region.

Broadcast mobile TV services continue to do well in Asia with more than 43 million ISDB-T One-Seg users in Japan and 15 million DMB users in South Korea. In Malaysia, there is a lot of consumer interest in mobile TV and the industry is actively working on plans for a commercial rollout.

FLO Technologies has conducted successful technical trials in Malaysia with Maxis and Astro which featured 25 live channels and clip-casting media.

Gadget driven

Much of the increased mobile consumption is due to the proliferation of new portable devices such as the iPhone and other smartphones featuring high-quality video capabilities, and the surge in mobile applications and services.

Apple has reported more than 5.2 million iPhones sold during its fiscal 2009 third quarter and its users have downloaded more than two billion applications from its App Store.

Also, some 70% of Japanese social network users access sites from a mobile phone; and social networking site Facebook has reported more than 30 million regular users via mobile phones.

As a result, data traffic from mobile media has increased 350% over the past two years.

These figures demonstrate the technology, content and, most importantly, demand for mobile media are all firmly in place and reflect a shift in how consumers access, view and engage with mobile content.

Consumers demand greater flexibility over where and when they consume content — such as freedom of place and time so they are not tied to their home screens or tethered to a broadcast TV schedule.

Rather than flipping through hundreds of channels, they want intuitive discovery and recommendations to find content that’s personally relevant. They also want interactive capabilities that provide connectivity to friends and colleagues through messaging and social networks.

The convergence of mobile media with social networking applications, and the increased consumer demand for them, provide a unique opportunity for an integrated entertainment service that brings together all of these elements.

Expanding access

Consumers have a wealth of information and entertainment devices from which to choose. Increasingly, the line between various categories of devices is blurring.

From the proven (mobile phones, laptops and personal media players) to the emerging (smartbooks, portable gaming consoles and in-vehicle mobile TV devices), multifunctional devices and applications are appearing that deliver information and entertainment on the move.

With worldwide smartphones expected to reach 600 million in 2013, low-cost accessories that enable mobile media delivery to smartphones are in demand. Connectivity via USB, mini-USB, or WiFi devices will unlock a vast, installed user base.

And, new devices that provide content and services using broadcast delivery in place of wireless connectivity are proliferating.

In markets, such as Japan, where users may commute long distances on public transportation, there is a growing interest in personal media players and public mobile TVs.

Outdoor digital signage displays are also being used to deliver media to consumers outside the home — KDDI, Samsung Japan and Toyota are among the companies trying new ways to expand media access — in malls, schools and on the road.

In other countries, where consumers often travel long distances by car, they have embraced in-car DVD players to provide entertainment during the road trips. Today there are motre than 23 million vehicles in the United States alone equipped with such entertainment systems.

Integrated offering

Delivering such a broad range of formats and services to such a wide variety of devices is technically challenging.

From a technology standpoint, streaming 3G, WiFi and mobile broadcast technologies each serve different mobile consumer needs.

3G networks are well-suited to deliver long-tail content such as niche programming and on-demand services. In addition, they provide immense content variety and a return path for interactive applications such as voting, rating, messaging, and m-commerce.

Side-loading content over WiFi or wired broadband is useful when 3G is not available or content is not time sensitive.

Mobile broadcast technologies provide instant gratification for live, time-sensitive content including exclusive sporting events, concerts and breaking news — when millions of consumers may be accessing the same content simultaneously.

Mobile broadcast networks can also be employed to deliver live and time-shifted mobile content including popular full-length programming, clip-casting media such as the day’s top YouTube videos, and always-on, broadcast IP data services such as news, weather and sports highlights.

Combined, these three mobile content delivery mechanisms provide true time- and place-shifting, allowing consumers the freedom and control to watch what they want, where and when they want.

A successful, fully integrated mobile media service leveraging all three technologies would provide the depth and breadth of popular and personalised content, services, and features consumers desire in a seamless and compelling user experience.

An integrated service approach would also empower mobile media providers to differentiate their services and compete more effectively to win and retain customers.

Last word

Deploying a successful mobile media service in markets like Malaysia has much in common with any other large-scale consumer service. It takes time, investment, a clear strategy, sound execution and the flexibility to quickly adjust to consumer trends and lessons learned.

Mass-market adoption of integrated mobile media services is only a matter of time; and when it hits, the advantages will go to the industry’s first movers.

(Note: The author is senior vice-president and general manager at Qualcomm FLO Technologies. The company offers an interactive mobile TV platform and enhanced mobile broadcast services.)

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