Skip to main content

Unicasts to Mobile Phones are Not Scalable

Mobile broadcasting -- as opposed to streaming "unicast" services -- is expected to rapidly become the model of choice for distribution of live television and movies to mobile devices in the United States. Moreover, U.S. service providers continue to offer pricing that only attracts the most enthusiastic early-adopters.

By the end of 2007 approximately four million subscribers will receive entertainment and information on their wireless handsets via mobile broadcast technologies such as DVB-H and MediaFLO.

Senior analyst Ken Hyers reports that recent conversations with major carriers confirmed what ABI Research expected: "The presence of as few as five users simultaneously receiving unicast content from a single cellular base station carrier band can seriously degrade data access for those subscribers. This is further confirmation that broadcast is the only way to get mass market uptake of these services. Already, the market is bearing out that broadcast is the essential method for offering these services."

A recent ABI Research study, "Broadcast and Unicast Mobile TV Services" forecasts that in 2011, mobile TV services will have some 514 million subscribers worldwide. Of that total, the research indicates, 460 million will be subscribers to broadcast services. Broadcast services will have 1.5 million subscribers by the end of 2006. In the US market, most subscribers will be enabled by the wireless carriers' broadcast network partners, including MediaFLO (a subsidiary of Qualcomm), Aloha's Hiwire network, and Crown Castle's Modeo service.

Though ABI Research believes that these services will debut for a $10 a month subscription fee, advertising will become an increasingly important source of revenue for mobile broadcast video, and will serve to subsidize high-quality programming. Also, the marketing strategy appears to follow the typical scarcity model: initially price the service high, and when slow adoption has reached zero-growth, then implement plan 'B' in the hope of stimulating demand.

Popular posts from this blog

Banking as a Service Gains New Momentum

The BaaS model has been adopted across a wide range of industries due to its ability to streamline financial processes for non-banks and foster innovation. BaaS has several industry-specific use cases, where it creates new revenue streams. Banking as a Service (BaaS) is rapidly emerging as a growth market, allowing non-bank businesses to integrate banking services into their core products and online platforms. As defined by Juniper Research, BaaS is "the delivery and integration of digital banking services by licensed banks, directly into the products of non-banking businesses, commonly through the use of APIs." BaaS Market Development The core idea is that licensed banks can rent out their regulated financial infrastructure through Application Programming Interfaces (APIs) to third-party Fintechs and other interested companies. This enables those organizations to offer banking capabilities like payment processing, account management, and debit or credit card issuance without