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Mobile TV in the US gets second chance
December 20, 2010 As Qualcomm looks at exit opportunities for its MediaFLO USA mobile TV subsidiary, a joint venture by several US broadcasters called the Mobile Content Venture (MCV) has announced roll-out plans for a new mobile TV network in the US. Initially unveiled in May 2010 under a different name (PEARL), the joint venture is composed of 12 broadcasters including Belo, Cox Media, E.W. Scripps, Fox, Gannett Broadcasting, Hearst Television, ION Television, Media General, Meredith, NBC, Post-Newsweek Stations and Raycom Media. MCV's aim is to promote the development of a mobile TV network across the US based on mobile broadcast technology ATSC M/H. The newly unveiled roadmap sets a target of 20 US markets covered by the end of 2011, equivalent to 40 per cent population coverage. Cities to be covered include New York, Los Angeles, Chicago, Philadelphia, San Francisco, Dallas, Washington D.C., Atlanta, Houston, Detroit, Tampa, Phoenix, Minneapolis, Orlando, Portland, Cincinnati, Greenville, West Palm Beach, Birmingham, and Knoxville. MCV is expecting the first compatible devices to hit the market in the second half of 2011. The broadcast mobile TV market, where TV channels are broadcast to mobile users through a separate network, has experienced many set-backs in recent months with service closures in Europe and the US. It is therefore interesting to see a renewed interest in this industry from major broadcasters such as NBC and Fox. Several technology and business aspects of the mobile broadcast network MCV is trying to build might lead to a better outcome. First, ATSC M/H is far cheaper to deploy than DVB-H or MediaFLO for US broadcasters as it leverages their existing digital terrestrial television infrastructure and spectrum. Second, because the underlying value chain is broadcaster-led, the content portfolio and corresponding business models will be better adapted to consumer habits and expectations. For instance, it is believed that the MCV will use a hybrid business model with free and paid-for content to push adoption while offering content providers some monetisation options. Finally, ATSC M/H enjoys strong backing from Korean handset manufacturers LG and Samsung which are key contributors to the technology. This should eventually help bring several compatible devices to the market during the initial launch period. DVB-H lacked compatible devices at launch, which is partly responsible for its European downfall. Although MCV seems well positioned to revive the mobile broadcast market in the US, some key ingredients such as mobile operator commitment and potential integration with cellular networks are still missing. Without handset subsidies, mobile billing, nationwide marketing campaigns, retail outlets and customer support, broadcasters will find it very difficult to bring ATSC-M/H to mobile handsets. In addition to this, there is still a high level of uncertainty regarding the users' willingness to pay to access mobile video content. Apple's App Store has brought a lot of free content to the market and pay TV operators are increasingly bundling mobile video as part of their top-tier packages. Finally, by the time ASTC M/H will reach 40 per cent of the population, mobile operators such as AT&T and Verizon will be upgrading their own network infrastructure with 4G technology, diminishing the role of ATSC M/H as a complementary technology for mobile content delivery. Screen Digest believes MCV will need the support of mobile operators in order to achieve widespread consumer adoption of ATSC-M/H on mobile handsets. Unfortunately, at present mobile operators don't have enough incentives to adopt and market ATSC-M/H on a wide scale and Screen Digest doesn't expect this situation to change in the foreseeable future. On the contrary, current disagreements between operators and broadcasters regarding digital dividend spectrum ownership are set to worsen the situation.
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USA
Companies: Qualcomm Belo Cox E.W. Scripps Fox Gannett Broadcasting Hearst Corp ION Television Media General Meredith NBC Raycom Media
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