Thursday, May 26, 2011

Mobile TV, video advertising and Apple

FreeWheel released a study this week, showing a number of interesting facts in the on-deck content syndication space.
  • Mobile TV represents only 1% of overall TV viewer ship (including fixed, web).
  • Apple devices represent 80% of mobile TV consumption. This is due to the fact that, having entered the market first, there is a larger penetration of the brand withing tablet and smart phone users, which has prompted content editors and aggregators to prioritize this platform for content availability.

  • Video advertising is starting to grow in revenue and viewing completion, mostly due to the fact that there is more long-form content available. Mid rolls are the most effective in term of completion rate, as long form content is more engaging, users stay until completion of the ad to resume their viewing.

I think on-deck mobile TV is till the least attractive of the mobile video services. It is expensive, offers a service that is the same as regular TV, with less quality.

Mobile TV becomes attractive to me when it offers different features from TV, that is acknowledging the fact I am mobile, like play and resume across screens (a feature I created for Videotron in Canada, see below)
or content / channel targeting. Operator that are successful in mobile TV cater to the long tail and offer niche content and channels for specific demographics. Access to the same top 10 channels as fixed TV is only good for a few bucks a month. Real monetization opportunities come from specialized content and channels.

1 comment:

Anonymous said...

Nice summary of the FreeWheel quarterly monetization report. Thanks for laying the link trail to help me find it!

There's a second potential revenue stream for online/mobile TV operators: social TV services. Unknown revenue size, but likely coming from two sources: additional ad serving and upgraded freemium subs paying for premium services. I'm putting out a report for GigaOm on this topic. There's a scramble and confusion today, since everyone believes there's a pile of money here but no one knows how to tap into it yet.