Mipcom

Day four at MIPCOM focussed on Mobile and how various business models can be applied to make it financially viable for the operator and the consumer. The focus was on video content which of course uses higher data rates and therefore is a higher cost to the consumer. The idea of a flat rate with no cap was discussed in many of the discussions as the best alternative but this may not be the best model for the mobile operator.

As with any media platform, it is all about the user experience and although most viewers would prefer watching TV without interruptions from commercials, they accept that advertising does fund our entertainment. This applies to magazines, radio and others so why not also to the mobile space?

South Africa already has 3G connectivity and is testing DVB-H and although various packages have been offered the uptake for the operators has perhaps not been what was expected. This could be because of the costs involved, a cap to the amount that can be watched or downloaded and of course the content which I believe is the most important. This doesn’t only apply in South Africa but is the experience of operators internationally.

Peter Cowley, Director of Digital Media at Endemol UK, firmly believes that advertiser funded mobile content will dominate. This does not mean commercials but engaging branded entertainment. I believe that this also applies to South Africa. We have a very high penetration of mobile phones in South Africa and it is the only media platform that we always carry with us. This is a huge opportunity for advertisers but we mustn’t get into the spam mindset with mobile TV content. Our mobile phones are a very personal device and consumers don’t appreciate receiving spam advertising on their mobile phones. Mobile content can be more targeted and even create viral marketing opportunities.

A large number of mobile phones are capable of receiving media rich content but if the content isn’t available, the platform is underutilised. If the content was ad funded, more content would be available and the user experience would be far better and the disappointed early adopters would come back. The key is however to develop unique marketing content for this platform. The screen is smaller, the resolution and quality is not like a TV experience so re-purposing TV content is not the answer.

Mobile TV is still in its infancy and many of the big players are dabbling, with varying degrees of success. The challenge for mobile operators is to create a unique content offering. The opportunity for advertisers is to look at mobile as a unique marketing platform where consumers can be engaged on a one-to-one basis.