Research
Mobile TV's looking like a big turnoff
By Diego Vasquez
Feb 26, 2008 - 1:10:19 AM

As many have long predicted, the number of people viewing television programs on their mobile phones is increasing rapidly. But more surprisingly, the number of ex-mobile phone TV users is growing at an even faster pace. A new study from Seattle-based mobile research company M:Metrics, commissioned by Tellabs, finds that the audience using mobile TV grew 36 percent in 2007 in the U.S., UK, Germany, Italy, France and Spain. But the percentage of ex-mobile TV users spiked by 68 percent, with most users citing price as the main problem. Yet a huge chunk also said they stopped using the service because of reliability issues. Sixty percent of mobile TV dropouts said they would start using the service again if the quality of the programs increased notably. The UK had the highest ratio of ex-users to users, while the U.S. had the lowest ratio but also among the lowest level of users, behind all of the European markets but Germany. Paul Goode, senior vice president of business development at M:Metrics, talks to Media Life about why the U.S. cares less about mobile television, why many ex-users may yet return, and what it means for mobile service operators.

What did you find most interesting or most surprising about this report?
 
The size of the impact that the improvement of quality and reliability would make to both growing and retaining the mobile TV audience.
 

What does it say about the future of mobile TV that former users are outpacing the growth of the market?
 
It says that there are some fundamental elements of the mobile TV service that need to be addressed to support a sustained long-term growth.
 

What are the quality and reliability issues that consumers are concerned about?
 
Reliability means consistency of the connection, e.g., no downtime or disruption. Quality means quality of the service, e.g., image sharpness, sound quality, etc.
 

Would many ex-users come back if the quality and reliability improved? Why?
 
Twenty-five percent of ex-users cited quality and reliability as an issue. Of that 25 percent, 60 percent would come back if there was an improvement in quality and reliability, while 34 percent of non-users would return if there was an improvement in quality and reliability.

So that would mean that approximately 1 million ex-users would come back if both were improved.
 

Why does the U.S. have the lowest ratio of ex-users to users?
 
The U.S. has the lowest ratio because of the greater importance TV has in the U.S. household, and a lower threshold for quality and reliability.
 

Why did Germany have such a high growth in ex-users?
 
Across all content categories the German users have shown a lower level of adoption than most other markets and a low retention rate would indicate dissatisfaction with the overall proposition for mobile TV at this time.
 

Why is mobile TV usage more common in Italy?
 
Because Italy has the highest penetration of TV enabled handsets, with 33 percent of the population having 3G devices. And 31 percent of TV viewers in Italy are using dedicated DVBH handsets, the first mass-market roll out of broadcast TV in Europe.
 

You predict operators will be disappointed at the 36 percent growth in the audience for mobile TV. Why?
 
Given the low base of mobile TV users and considerable hype around the industry.
 

How can the mobile industry spark greater future growth?
 
The No. 1 issue to address is the perception of value for money, as price was cited as one of the key factors for lack of uptake. (Opportunities for advertising for ad-funded offerings even with limited reach.) Secondly, a greater focus on improving quality and reliability.