CASBAA Launches Report on Mobile TV in Asia

HONG KONG, January 24: CASBAA has released a new report that
explores some of the factors necessary for the future commercial success of
mobile video TV services in the Asia-Pacific region.

Commissioned by the CASBAA Mobile TV Committee, the report assesses
the current state of mobile TV in Asia and was written by digital research
agency Tomorrow. The report cited 10 factors that were needed to ensure the
success of mobile TV in the region. Firstly, the right kind of mobile video
distribution platform needs to be in place, which often requires two distinct
networks: one built for mass distribution and the second, a unicast network
designed to facilitate on-demand services. The second factor is the ease of use
of mobile TV for the consumer, with the report noting differences in the ways
that operators approached the navigation and organization of content. For
example, video that is hidden deep within pages of menus, requiring multiple
clicks for access, did not result in a compelling experience. In comparison,
mobile TV services in Korea allow for easy switching of channels and access to
a mobile EPG.

The third factor is a healthy ecosystem that involves
integration between content providers, network operators and device
manufacturers. Other factors cited include well-designed, appropriately priced
mobile video devices, with CASBAA noting that handset costs are proving to be a
problem in emerging Asian markets; and wider, deeper and consistent mobile TV
coverage. The sixth factor is the collection of revenue, with the pricing of mobile
TV services needing to be transparent, tiered and tailored to local market
conditions. In terms of revenue, billing could also pose another challenge,
with users in markets such as Malaysia and the Philippines still on prepaid
accounts, and micro transactions.

Lastly, the report also noted that factors such as a
sufficiently flexible regulatory regime, as well as localized and premium
sports content, mobile advertising and the varying lifestyles of mobile TV
consumers across Asia, also need to be taken into consideration.

CASBAA also warns that the Internet may hinder the adoption
of mobile television in Asia, with interactive devices such as the Slingbox
challenging the “best laid plans of media companies.”

According to Datamonitor research quoted in the report, the
number of mobile TV subscribers in Asia could hit 76.3 million in 2012 out of
156 million globally, up from an estimated 15 million in Asia today.

“Although mobile TV services could be a huge revenue source
for broadcasters and advertising agencies, there are many issues that still
need to be addressed before getting the industry onto the right track,” said
CASBAA Mobile TV consultant Mike Walsh.

Added CASBAA’s CEO, Simon Twiston Davies, “The mobile TV
industry is passing new milestones all the time and CASBAA will continue with
its efforts to bridge the knowledge gap between content providers and
carriers.”

—By Irene Lew