Ovum: Mobile TV has a grim future

Ovum: Mobile TV has a grim future

A number of obstacles stand in the way of making TV services to mobile handsets as a viable industry

Most attempts in capitalising on TV services to mobile handsets have failed, according to analyst firm, Ovum.

Viewing videos via handsets have become increasingly popular but the delivery of TV services has been disappointing.

“At best it has achieved incremental revenues to existing Web services, at worst substantial investment write-downs,” Ovum analyst, Tim Renowden, said.

This trend shows no signs of abating as there are many obstacles that stymie the path of mobile TV as a viable industry, according to Renowden.

It is a Catch 22 as television networks see mobile TV as a risk and may be reluctant to invest into it.

For one, as mobile TV opens up opportunities to stream live content to a range of devices, it then acts as a competitor to TV services in the home which has potential to earn advertising and premium subscription revenues.

TV networks must make upfront investments in content and mobile infrastructure or risk the weakening consumer demand for handsets, Ovum claimed.

“One possible use for mobile broadcast technologies is in addressing mobile network capacity issues, by offloading high-bandwidth video traffic,” Renowden said.

“The latest telco-led approach is integrated mobile broadcast [IMB], a new standard that lowers some but not all of the barriers to adoption of mobile broadcast services."

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Tags ovummobile tvMobile handsetsmobile solutionsintegrated mobile broadcast (IMB)

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