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Many editorial pundits have opined that the value of watching TV on your mobile phone�s �tiny screen� is, at best, tedious and, at worst, impossible. However, a large number of industry analysts (Ovum, Informia, Datamonitor, Yankee Group), several major equipment vendors (Alcatel, Ericsson, IBM (News - Alert)) and operators (Docomo, SKT Telecom, Telecom Italia, 3, Verizon, Cingular) all state that we are just on the cusp of a dynamic new era in which we can catch the latest newscast, watch last night�s episode of Desperate Housewives, or be entertained by a first-run movie, all on our mobiles.
 This is indicated in the Mobile TV Revenue Forecast chart from Datamonitor. If true, then we must ask: Is the mobile video application experience just about the �lean back,� non-participatory event of watching, or can it be both a �lean back� and �lean forward,� interactive, participatory experience? My position is that it has to be both! Yes, the tiny screen audience represents a very big interactive opportunity for monetizing content. As always, content is king, and in mobile video, interactivity is the key to monetizing that content. Further, mobile video business models that rely solely on content delivery without supplementary revenues from sources such as advertising will have a hard time staying viable.
So if mobile video interactivity is important, what applications are leading the charge when it comes to market forecast and relevance?
According to information from market forecasters, such as Ovum, Datamonitor, ABI, and Informia, the number one mobile video application is Video on Demand (VoD), or more simply, video clip download or streaming. Video on Demand usually has a limited user interface and is subscription-based. The technology types behind it include fast 3G networks, either IP or circuit-switched (3G-324M), and emerging Digital Video Broadband � Handheld (DVB-H). Examples in the United States include Verizon (News - Alert) VCast and direct-to-mobile download from sites such as Comedy Central.
The second application is pure Mobile TV. Mobile TV is normally live-streamed to the handset via either an IP connection or over 3G-324M. In the distant future, DVB-H handsets will accept streams from network broadcasts to enable a very �TV-like� experience.
The third most forecast application is See What I See. This application is eminently useful for all of us that are fashion-challenged. I, for example, often need help in picking the style of a suit or tie (as my wife is quick to point out), but I don�t always have a fashion consultant on hand when shopping. With See What I See, I can make a mobile video call to my fashion consultant (read: my wife) on her PC or desktop phone and show her what I�m looking at in real time. She can comment and help set me straight regarding that great polka dotted bow tie I wanted to buy.
The fourth application on this list is emerging rapidly as the most viral in all of mobile video � Mobile Video Sharing and/or Vlogging. Here, mobile video subscribers can take part in a community of users that share common interests. A good example of the effect of viral video is the rock group �OkGo.� In early 2005, they were unknowns that had just inked a record contract. Being young and very mobile- and Internet-aware, OkGo knew about sites like YouTube.com and MySpace.com. Seeing the opportunity, OkGo created a low-budget backyard video of the band dancing to one of its new songs. Its record company told them not to post it. Of course, they posted it immediately on YouTube.com and linked it to a MySpace.com fan page. It became an instant hit. No one expected what happened next. Fans from around the world began posting their version of the �OkGo� dance, and today there are nearly 200 versions on YouTube as well as a contest for the best version. Mobile Video enables viral video. . .
The fifth application is IVVR (Interactive Voice and Video Response). An example of an IVVR application is Universal Music Mobile�s �Label Studio TV� deployed by SFR and O2 in the UK. Most of us are familiar with traditional IVR and its ability to help monetize audio content. What is happening today is the monetization of mobile video content and the up-selling and cross-selling of that content to end users. This application uses circuit-switched mobile video (3G-324M) to help monetize Universal Music Mobile�s global catalog of music videos, albums, wallpapers, ticket sales, etc. Users make a short code video call to the service and are immediately connected to an interactive video portal experience.
There are many other applications that you would expect to be mentioned on this list, such as mobile video conferencing, videomail, video chat, conversational video, video call centers, etc. According to research, these applications ranked lower, not necessarily because they have less value to consumers but because they are not forecast to be as large in terms of operator revenues.
So is the future of mobile video a �lean back� or a �lean forward� experience? I say it�s both. IT
Mike Katz is director of product marketing for NMS Communications. For more information, please visit the company online at www.nmscommunications.com (news - alerts).
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