The public response to mobile TV services has been lackluster, yet some companies have high penetration levels. So what are the key ingredients of a successful launch?
Despite rapid growth in mobile-TV offerings worldwide, teething problems are still causing many mobile-TV viewers to switch off.
An Ericsson ConsumerLab survey earlier this year revealed that up to 70 percent of mobile-TV users rated their services either “so-so” or “unsatisfying.”
However, pioneering technology, innovative marketing, pricing models and tighter quality controls are helping operators improve services and explore this enormous market's full potential.
Vodafone Spain was one the first companies to offer downloadable applications to handsets, which allow channels to be changed with a single click.
More than 20 percent of the company's mobile-TV clients have used TV Zapping - an application with rapid channel switching and an electronic program guide - since its launch in March 2007.
“People using this application are far more active than WAP users,” says David Martin, responsible for multimedia solutions and system integration at Ericsson Spain's Vodafone unit.
“They account for 65 percent of all sessions, which clearly shows the positive effect of improving usability.”
Vodafone Spain was particularly well placed to increase mobile-TV penetration in Spain because it has the country's highest 3G take-up with more than four million devices.
The ability to offer relevant content was another essential ingredient of the successful launch, as were free promotions. The company teamed up with Digital +, a major satellite-television provider, to offer a bundle of channels free for several months. Free access to major sporting events, such as Formula 1 races, was also used to boost consumer interest.
The cost of services is a key issue for users. According to Ericsson ConsumerLab, 60 percent of users surveyed said they would watch more mobile TV if it were cheaper.
Vodafone Spain applies a flat rate of EUR 6 per month, attracting additional revenue from short advertising clips.
“This is an extremely innovative approach,” says Mercedes Moran, solution architect at Ericsson Spain's Vodafone unit. “There are no nasty surprises for the end user at the end of the month.”
Service quality is also critical because mobile-TV reception is highly sensitive to delays and packet loss.
“There is intense competition between companies at the moment, and Vodafone Spain runs continuous quality audits aimed at preventing failed sessions,” says Moran. “You just cannot afford to have frozen screens or interruptions, or you'll lose users.”
Vodafone Spain's TV Zapping service is a good example of how an operator can launch mobile TV successfully by keeping consumer needs and demands in focus.