Smartphone uptake catalyst for mobile TV adoption: GoTV CEO

By Mickey Alam Khan

February 23, 2009

GoTV programming

Mobile media network GoTV Networks is making premium mobile entertainment channels available on the T-Mobile G1 handset, powered by Google's Android platform. What else is it upto this year?

In this interview, Thomas Ellsworth, CEO of GoTV Networks, touches on the state of mobile television and where it is going. Here is what Mr. Ellsworth had to say:

Everyone keeps saying 2009 is going to be a good year for mobile television. Is this a hype or reality?
I believe 2009 will be good for mobile television.

You cannot discount the impact of two positive, basic forces going forward: 1) Smartphone take-rates in the U.S. have reversed the fairly anemic trend seen prior to 2008; and 2) more all-in rate plan introductions are coming.

These are important catalysts for mobile television adoption and the establishment of regular consumer consumption patterns.

GoTV is mobile TV

How will this year be different from last year?
On the down side, there is an ongoing shakeout in mobile among retailers, handset OEMs and even carriers themselves.

Beyond the slowing pace of net subscriber adds in a market approaching logical limits to penetration, one truly compelling upside is apparent: handset upgrades continue to be brisk and smartphones are leading the way.

Just one year ago the stats did not support such a statement. Not anymore. Armed with great devices, consumers will do more with their phones than ever.

It's a bright future with some current adjustments in play, but bright nonetheless.

What breakthroughs do you expect to see in the industry this year?
I don't pretend to know the future in terms of technological advancements but I did see a solution by a company called HipLogic that was compelling. HipLogic brings iPhone-like desktop management to other platforms.

That kind of a thing is a breakthrough that enables the consumer to exercise control over their mobile device just as they do on their PC.

How is GoTV doing?
GoTV is doing really well in what is a fairly tough sector - mobile - in the middle of a tough U.S. economy. It's a realistic view of the 2009 business environment.

You can dwell on it or you can look forward and stay positive.

GoTV is looking forward to, and very excited to, launch some new initiatives this year.

The team is doing a great job delivering quality products and programming while controlling costs in an unstable environment, so we are on solid ground right now.

Are you positioning GoTV any differently for '09?
Not at all.

GoTV continues to be well-positioned as the complete mobile media and entertainment partner.

We provide the full set of technology solutions required to deliver our original and custom content to mobile through an established network of partners including wireless carriers, the Apple iPhone Application Store and Google's Android Market.

What are your plans for this year?
The 2009 plan contains a few key initiatives to spur growth: expand the reach and viewership of our slate of original content, incorporate advertising support as rate-plan revenue-sharing evolves and deliver compelling programming and product solutions for our brand partners and their agencies.

In addition, we will be launching a very exciting new social network media platform.

Any lessons learned from last year that change or effect how your moving forward this year?
There were a lot of lessons learned everywhere in 2007 and 2008.

Today, what stands out in my mind is that there is no long-form or short-form debate among the consumer. They demand a blend of both in what is proving to be primarily an on-demand medium.

Linear has limitations. Short-form consumption remains strong even as long-form consumption continues to grow because it has been enabled.

The enabling factors include handset capabilities, driven in no small way by Apple and Google, battery life, 3G network speed and coverage, blended Wi-Fi/3G devices and, lest we forget, the availability of more long-form content for mobile.

Will you pay more attention to some services that you offer over the others?
While we continue to focus on maintaining programming quality and evolve content with customer tastes, in 2009 more development attention will go to long-form content and LiveFromYou, our social network media solution.

What's the one thing you won't do this year that you did last year?
That's a loaded question without a clear answer.

GoTV had a solid year in 2008 because the company focused on key business lines and established a culture of thrift in 2007.

With that in mind, perhaps speed is the answer for 2009. In uncertain times those who are prepared to move quickly have a strategic opportunity to establish or extend their market position.

You have a strong team in place and some new channels on board. How are you guys doing financially? Is all this good timing or intentional?
We are driving the business forward and I am pleased to say we hit the financial goals our board members set forth in 2008.

As for timing, the market dynamics present challenges for everyone but we have intentionally funded to meet and exceed our goals.

Any recent milestones at GoTV?
To kickoff 2009, GoTV launched a slate of custom programming developed for Sprint's Sprint SEE offering.

The channel line-up was carefully tailored to the demographics of Sprint's subscriber base. The team did a phenomenal job.

Additionally, in researching user-generated and social net solutions for mobile, we developed LiveFromYou, a personal media widget for Facebook and MySpace that has significant advertising and product revenue potential.

What are your clients saying about mobile television and its ad-supported initiatives?
We are hearing nothing but positive statements about the potential for mobile to deliver compelling advertising solutions.

Getting there in the right way is the trick. Our current and past clients including Tide and Lexus want to see compelling mobile integration in the form of campaigns and solutions that deliver results.

The days of mobile being part of discretionary new media budget that does little else than reinforce the brand is coming to a close.

We will be kept busy building these compelling campaigns that incorporate mobile advertising impressions and mobile integration with social networks.

What Does GoTV's future look like?
GoTV is a venture-funded company and, at some point, the company will likely be acquired by a partner looking for a turnkey on-ramp to the mobile market through our technology base, distribution and studio.

Until that day, we will continue to provide direct access to the mobile market and vital leverageable value to our brand and advertiser partners.