Mobile TV: Has Its Time Come - Case Study Example

 Mobile TV: has its time come? Executive summary Various research studies have identified that mobile tv might well have found its proper time. Consumer attitudes are shifting toward adoption of the technology whilst the infrastructure to support it is also in a state of renewed corporate investment and is experiencing growth. Youth markets also characterize the sales environment as being viable for service broadcasts and advertising content. Research was conducted using secondary analysis with various business journals and corporate publications in order to assess factors that should be considered including functionality, consumer, business strategy, and growth rates in subscribership. It was determined that mobile television has reached it time based on knowledge of inter-linkages between price discrimination and content accessibility and consumer lifestyle. Mobile TV: has its time come? Introduction Mobile television is categorized by the nature of its delivery: to the mobile device such as the smart phone. Content offers a personalized experience from traditional television as much of what is delivered via unicast or multicast transmission is customized for the mobile device and differs considerably from traditional broadcasting strategies. The question being asked, when considering multiple angles such as marketing, content, consumer behaviour patterns, and other demographic scenarios, is whether Mobile TV’s time has come. Research has identified key consumer characteristics related to their culture, age and gender that should act as predictors for the likelihood to use mobile TV services in diverse audiences. The evidence suggests that mobile television’s time has come as supported by the market characteristics that are currently driving use of the technology. Findings: consumer profiles Rehman, Zia-ur-Rehman, Saeed & Raza (2010) present the results of a research study intended to measure the predicted motivators that would drive mobile television usage in Pakistan. The study involved a small sample of men and women from different demographics. The results of the study indicated that Pakistani men are status-oriented whilst women are more socially-focused as part of their inherent gender characteristics. It is already understood that mobile TV content is customized for the mobile device, therefore when presenting mobile television content in this particular country, issues related to male status and female sociability should be considered by the service provider and associated contractual partners involved with content production. The study further identified that there was a growing trend toward usage of Mobile TV in Pakistan (Rehman, et al.). This therefore represents a market willing to use the technology and a set of identifiable, scientifically-validated gender characteristics for consideration by the mobile TV providers. Constantiou & Mahnke (2010) reveal the results of another research study involving a small sample of men and women. The majority of respondents were between 18 and 24 years of age, with a secondary subgroup of 25 to 32-year-olds. This particular study used a sample of individuals in which most had a university degree and many held a master’s degree. The goal of the study was to measure the behaviour patterns for traditional broadcast television. The average duration of television watching was two hours and 40 minutes each day (Constantiou & Mahnke). Respondents were asked as to the time they spent in queues, on break at work, engaging in outdoor recreation or spent in public television. The sample provided an average total of 100 minutes daily. What this represents is a group of men and women, no older than 32, that provide broadcast providers over four hours of potential air time based on their personal and professional availability to engage, potentially, in mobile television viewing. The same group involved in the study by Constantiou & Mahnke identified that average amount of expenditure for mobile communications was between 20 and 40 Euros. This should be considered a predictable subscription pricing rate that would be acceptable, based on current expenses, with a young adult market maintaining high educational credentials. Kaasinen, Kivinen, Kulju, Lindroos, Oksman, Kronlund & Uronen (2008) present another study involving Finnish television viewers as part of a mobile TV pilot study. The sample consisted of 27 randomized viewers and was intended to act as knowledge for establishing an acceptable pricing strategy. After being exposed to 10 different mobile TV pilot services, approximately half adopted regular mobile TV habits at least once every week (Kaasinen et al). The study revealed this group of Finnish consumers would only consider pricing fair when the expenditure was directly related to services actually used and was dependent on the situational context of how the services were used (Kaasinen et al). The most notable result of this study was not so much related to pricing discoveries, it was that roughly half of the respondents adopted a change in behaviour that led them at least once weekly to the mobile television content. The results of this study should act as a predictor that there could be market availability in Finland and through exposure to these services, the consumer begins to adopt a new lifestyle activity related to receipt of broadcast television, though pricing concerns might be limited to 20 to 40 Euros as a stable pricing guide. Another study is presented by Ali (2007) involving child consumers. The study recruited 24 youths between 11 and 12 years of age, consisting of in-home interviews in groups of two based on their friendship affiliation. A secondary sample group of 300 children in the same age bracket were presented an online interview. All children involved owned mobile phones. The research results identified that 40 percent of the children received their first mobile phone at only ten years of age (Ali). Additionally, it was discovered that the sample group feels a strong emotional bond with their mobile phones and consider it a part of their lifestyle and social identity (Ali). The results of this study provided that there is a young adult market that is strongly connected to their mobile phones as a lifestyle, social and identity-building tool that have access to supporting technologies at a very early age. The study involved children from north and south England and does not represent youth character profiles related to mobile television from countries with a larger presence of mobile phone availability. However, the research data on this youth group looks to support a market that could be predicted to embrace mobile TV based largely on their social connection with mobile technology and their reliance on the tool as a functional status symbol. Findings: the statistics Service providers for mobile television are continuing to evolve and enter the market. Some of these include Verizon that offers the technology via its FLO Network and has invested nearly 45 billion USD toward supporting mobile television (Shim, Park & Shim 2008). AT&T, a multinational provider, has also entered this market. In Japan, KDDI Corporation offers the technology on a joint-venture operation with QualComm to deliver video and audio to a variety of mobile devices (Shim et al). There is a growing provider network for mobile TV that is observable in the United States and Japan, with major and trusted companies offering the services with the investment to support a quality infrastructure. Mobile TV has witnessed the most growth in areas of service provision in Korea, followed by France, Germany, the United Kingdom and the United States (Horan 2008). However, simply via means of current service availability it represents a market opportunity for advertising and also for gaining subscriber interest. There are currently 2.4 billion mobile phones in operation across the world today (Horan). Service providers and the regulatory community agreed by 2015 there would be entitlement to the different broadcast frequencies for use in mobile television provision that had been strictly for traditional broadcast television (Horan). This represents growth in its global availability as a service and also the high-volume technology on the market to support the function. Mobile TV has experienced revenue growth that has been explosive. Growth was measured by revenue of 2 billion in 2006 and 9 billion in 2010 (juniperresearch.com 2010). Concurrently, there were 160 million mobile devices sold in Europe alone in 2006 (New Digital Solutions 2006). Growth in mobile technology usage is being witnessed across Europe and Asia that have radically different cultural profiles and genuine lifestyle needs for their mobile technologies. As far as the networks available and the consumer attraction to mobile technology, the statistics support an ideal environment for growth in mobile television and sales opportunities for companies looking for an environment to promote their products or broadcaster concepts. Subscriber rates for mobile TV alone improved from only 5 million in 2006 to 165 million in 2010 (Nagravision Mobile 2010). The studies presented in this report offered clues to the consumer profile and their accessibility ratios for mobile technologies that might, or might not, have mobile TV capabilities as part of its design. However, found on the most developed continents is a trend of growth in accepting mobile content that is not necessarily dependent on the lifestyle trends or demographic backgrounds of members in global society. Youth markets, young adult markets, and at least, as supported by the study data, until age 32. These are key demographics from the marketing angle in terms of maintaining discretionary income related to job status and lifestyle. Findings: capabilities of service variety Mobile devices give consumers new flexibility in terms of staying in contact with news events or elements of their social environment which is likely contributing to the growth in both subscribership and acceptance of mobile technology in lifestyle and profession. This report, however, should identify the functional capabilities of mobile devices that can support mobile television broadcasts in order to determine whether its time has truly come. Mobile devices have sophisticated technology that allow for complementary functions with other devices. These include such common recording devices as TiVo (Montpetit, Klym and Blain 2009) and is a feature found with major satellite providers as a supplementary service to customers. Mobile technologies have also familiarised worldwide consumers with the ability to stream video from their mobile devices, thus changing perceptions on television viewing related to screen size. Any concerns addressed about dimensions of viewing are being answered by new mobile technologies such as the iPad or similar products. There is a growing innovation trend toward being able to use mobile devices to view video content in terms of the production processes and speed to market. As far as being able to secure partnerships or joint ventures in the pursuit of gaining investment for the provision of mobile television, the capabilities of these devices are supportive of a time for mobile services globally. Findings: the risks Even though there is a large international presence of mobile telecommunications and consumers with access to these products, there are certain consumer behaviour traits that should be identified. Viewers tend to have a very short attention span and will conduct much channel surfing. According to The Mobile TV Factory (2007) the attention deficit of the consuming audience will demand a more fast-paced delivery and frequent updating of content. There is even concern about whether or not the type of programmes that have been considered acceptable for traditional television would require definite customisation to fit new mobile TV viewer profiles or how they see their relationship with content acceptability in the mobile environment. Mobile television is in its infancy stage, however the environment, overall, supports opportunities for direct investment or development of new strategies related to becoming partnered or involved in content production or distribution. Attention deficit problems and the tendency to shift from programming to programming, either based on environment or lifestyle, would pose a difficult operational dilemma related to targeting customers. Assessment of this behavioural trait and its implications are discussed in conclusions. Conclusions Research evidence and the volumes of studies conducted on human respondents related to television viewing promote that the environment supports the notion that mobile television has reached its time. Consumers are readily accepting mobile video viewing and it is becoming an identity formation tool for some youth markets that are quite influential when persuading parental purchasing involvement and support. The youth attachment to their mobile devices means they will, logically, be prone to access it more frequently and, in a best case scenario, allow content to help shape their identities. This was supported by the very young age at which youths receive their first mobile device and is grounded in psychological theory related to identity formation and development in this cognitive stage of development. It is a market that completely supports mobile technology as finding its proper time. The infrastructure and investment support for improving mobile television service is somewhat disproportionate to the knowledge related to how to properly deliver content that will have an effective response. It was recognized that consumers have short-attention spans, complex social dimensions related to their view of mobile devices and might be discriminatory about content as it is associated to price. There is clearly a need for more research in this area. However, when drawing conclusions based on what was gleaned through research, content must be able to speak a relevant and targeted message and being captured in real-time by a fluctuating viewer. A company considering entering this market through direct investment or internal restructuring should be aware of the risks, therefore removing some support for mobile technology finding its time as this knowledge is less volumous than the supporting architecture for delivery. The attention deficit problems related to consumers poses a problem as it was related to pricing. The study results provided by Kaasinen (et al.) identified a potential price discrimination related to content access and whether it is fair to pay for unaccessed materials. This leads to the conclusion that the establishment of competitive pricing structures is necessary in order to create a balance in the sales environment and absolute definitions created, by the service providers, about the nature of the accessibility and content access before it becomes a profit machine. Attention deficit, in the context the author used the terminology, did not reflect a psychological dysfunction, rather it suggested a trend of behaviour in which the viewer would be influenced to access broadcast content quickly or through boredom. It would be a logical assessment, based on the evidence provided by Constantiou & Mahnke, that consumers would have an average 100 hours of their day to access mobile materials while engaged in break scenarios or other superfluous activity throughout the day that is unpredictable and rapidly changing. In order to determine whether mobile television’s time has come, the research draws out the argument that there should also be a methodology in place by which the broadcasters can obtain real-time consumer attention and capture it every time. By creating a per access pricing structure, there might be more growth in subscribership due to a trend toward price discrimination based on accessibility. This does not necessarily exist in the sales market today. Taking into consideration all of the findings, it is safe to say that the time has come for mobile television. There is an advanced infrastructure with businesses offering large-scale investment into its improvement and joint venture relationships are establishing a competitive norm that is driving forward growth. Based largely on market growth and subscribership as well as the volume of mobile devices currently on the market (especially when compared to growth ratios), mobile television has reached its due time and can serve as a profit tool for businesses in multiple industries once certain structural components are part of the micro and macro environments. References Ali, S. (2007). Upwardly mobile: a study into mobile TV use amongst children, Young Consumers. 8, 1, p.52. Constantiou, I.D. & Mahnke, V. (2010). Consumer behaviour and mobile tv services: do men differ from women in their adoption intentions?, Journal of Electronic Commerce Research. 11, 2, pp.127-140. Horan, T. (2008). Big screen, little screen, Organisation for Economic Cooperation and Development – The OECD Observer. Iss. 268, pp.22-24. Juniperresearch.com. (2010). [internet] Mobile TV: watch it grow. 2nd ed. Juniper Research. [accessed 30.11.2010] [available at http://juniperresearch.com/shop/products/whitepaper/pdf/MobileTV_II_White_Paper%20_2_.pdf] Kaasinen, E., Kivinen, T., Kulju, M., Lindroos, L., Oksman, V., Kronlund, J. & Uronen, M. (2008). Fin Pilots 2 Final Report: User acceptance of mobile TV services, Otaniemi Finland: VTT Research Center. Mobile TV Factory. (2007). Mobile TV production – expectations, challenges and strategies. [accessed 1.12.2010] [available at http://www.broadcastpapers.com/whitepapers/MobileTV_Production.pdf?CFID=20249397&CFTOKEN=1eacc6fa62ffbca3-C15C4AA4-C5D4-FA6C-FC12AB12E881ED96] Montpetit, M., Klym, N. & Blain, E. (2009). [internet] The future of mobile TV: when mobile TV meets the Internet and social networking. [accessed 30.11.2010] [available at https://springerlink3.metapress.com/content/r88274n7w74g7745/resource-secured/?target=fulltext.pdf&sid=qtkxhg55glujjfv5llvwdeqa&sh=www.springerlink.com] Nagravision Mobile. (2010). [internet] Mobile TV on the Move. [accessed 1.12.2010] [available at http://www.nagravision.com/pdfs/nagravision_wp_mobtvonthemove.pdf] New Digital Solutions. (2006). [internet] The ultimate reference guide to digital convergence [accessed 1.12.2010] [available at http://www.cleverdis-pdfdownloads.com/pdf_files/nds_ifa_06.pdf] Rehman, A., Zia-Ur-Rehman, M., Saeed, M. & Raza, I. (2010). Motivators for the intention to use mobile TV in Pakistan, Interdisciplinary Journal of Contemporary Research in Business. 2, 5, pp.485-407. Shim, J., Park, S. & Shim, J. (2008). Mobile TV phone: current usage, issues, and strategic implications, Industrial Management + Data Systems. 108, 9, p.1269. Bibliography Banister, E. & Hogg, M. (2004). Negative symbolic consumption and consumers' dive for self-esteem: The case of the fashion industry, European Journal of Marketing. 38,7, p.850. Narver, J. C. & Slater, S. F. (1990). The Effect of a Market Orientation on Business Profitability, Journal of Marketing, 54, 4. Appendix A: Revenue increases over a five year tangible and predicted period. Source: http://juniperresearch.com/shop/products/whitepaper/pdf/MobileTV_II_White_Paper%20_2_.pdf Read More