Pricing, awareness key to mobile TV and video take-off : Study
April 1, 2008
TV or not TV?
A new study claims that nearly half of U.S. consumers don't know if their wireless carrier offers mobile television and video services.
For consumers who are currently using mobile TV and video, the study from QuickPlay Media shows that 71 percent have a preference for mobile content “snacking” versus setting aside dedicated viewing times.
“Still, after all this time, more than half of U.S. consumers don’t know what services their wireless service offers,” said Mark Hyland, vice president of marketing at QuickPlay, Toronto. “This reflects the fact that mobile TV and video is still at an early stage. Carriers need to market their mobile media services to address the lack of awareness."
The study also showed that 41 percent of consumers view content in between daily activities, 16 percent while waiting in line and another 14 percent while on the bus or other public transportation.
“When you have a minute or two minutes you essentially want something on demand,” Mr. Hyland said. “More content is viewed on demand than on the broadcast model. On-demand content fits the mobile lifestyle.”
QuickPlay also said 31 percent of people who have viewed mobile TV or video indicated that they have spent “less than five minutes” doing so and 58 percent watch mobile TV and video at least one to three times per month.
Also, 57 percent of those surveyed would consider the ability to pause and resume content a deciding factor in whether or not they would watch longer forms of content, such as a full-length movie, on a mobile device.
The study shows that all-you-can-eat packages are becoming more widespread. However, they are not the preference for all consumers, many of whom voiced a strong interest in the ad-supported model.
“There is a lot of promise in ad-supported models,” Mr. Hyland. “Cost is one reason why some people haven’t tried TV and video plans. Bundling them into data plans and adding advertising into the mix is the way to go.”
Forty-three percent of respondents stated that perceived cost was the No. 1 reason they have not tried mobile TV and video. An additional 54 percent of respondents said they would be willing to watch a short, targeted advertisement on their mobile device to have free access to mobile TV and video content.
Ironically, although much has been written about growth of mobile ads, 83 percent of respondents have not viewed an ad on their mobile device.
“Pricing and awareness will drive this medium forward,” Mr. Hyland said.