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Mobile video apps on the rise

July 26, 2011

  • 20th Century Fox is planning to launch full feature length movies for Android devices to be distributed as a free complement to Blu-ray editions via sideloading (i.e. downloaded on PC and then transferred onto an Android device). It will start with the Blu-ray version of X-Men: First Class to be released this October. US, UK, France and Germany are known to be the first countries which will enjoy the "dual" release.
  • 3rd place Spanish mobile operator Orange Spain launched a mobile TV application on Android and iPhone. The application offers a high-end user interface for subscribers to one of Orange's €6/month (excluding VAT) mobile TV packages. This is the first application of its kind in the country.
  • Canadian mobile video vendor Quickplay Media has acquired the operations facilities of closed Qualcomm's mobile TV venture MediaFLO USA. Located in San Diego, California, the new site will help Quickplay Media expand its reach in the US and helping to support existing partnerships with local content providers.
  • BBC Worldwide, the commercial subsidiary of the BBC, announced over 12m application downloads on smartphones and tablets in 2010, out of which 9m were generated from the Lonely Planet travel apps. Other popular apps from the company are based on popular UK TV shows such as Top Gear and Doctor Who. In the 2010/11 financial year, BBC Worldwide digital sales - including mobile - grew 8.1%.

20th Century Fox's effort to incorporate mobile in its Blu-ray marketing strategy will help make new movie titles more accessible on Android devices but will have little to no effect on Blu-ray sales. Many consumers purchase a Blu-ray disk in order to watch the corresponding movie on a large HD flat screen and not necessarily on a mobile device. Finally, the inability to download the movie directly via WiFi or 3G onto the device is a massive drawback which is likely to put off several Android users.

Orange is the third-placed operator in Spain with just over 12m mobile subscriptions. The Orange TV Player application is a good way for the company to differentiate from Vodafone and Telefonica. Orange has a similar product in France for which it has over 1m users. Vodafone is the only other operator currently offering mobile TV services in Spain. It will be interesting to see whether it follows Orange's lead in the mobile video space.

Quickplay's investment in the US makes complete sense. The mobile video vendor has reached saturation point in its Canadian home market and needs to expand its geographical footprint to fulfil its growth prospects. The US is easy for Quickplay to address, first because of its high smartphone penetration rate and also because of its ability to leverage existing content deals.

BBC Worldwide is a very good example of a broadcaster which has managed to take full advantage of the application store phenomenon. Aside from Lonely Planet, which is the core mobile revenue driver for apps, only 3 out of the 25 apps BBC Worldwide has published on the UK App Store are available for free. Monetising the fan-base of key TV shows is something that BBC Worldwide has been working at very strongly and it seems that its app strategy is very much on track to fulfil this.

   

 

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