Mobile TV and Video Content - UK - April 2009

Table of Contents

• Issues in the Market
• Main issues
• Definition
• Abbreviations
• Market in Brief
• Mobile TV and video market not yet cleared for take-off
• Foundations for growth fall into place...
• ...but persistent barriers block route to progress
• Recession depressing current demand and restricting future supply
• Segmentation the way ahead
• Market can build momentum, but needs a kick-start to get it going
• Internal Market Environment
• Key points
• The mobile phone market
• Focus flicks from quantity to quality
  • Figure 1: UK retail handset sales and mobile phone service subscriptions, 2004-08
• Contracts central to mobile TV take-off
  • Figure 2: Mobile phone subscribers, by network operator and payment type, 2006-08
• 3G: Minority status restricts potential audiences
  • Figure 3: Estimated share of 3G subscriptions, 2005-08
• Handset functionality: Consumers familiar with more and more features
  • Figure 4: Mobile phone features, 2004-08
• Only smartphones have the answer?
  • Figure 5: Smartphone ownership, Apr 2008-Oct 2008
• Mobile TV technologies
• DVB-H: The new European standard
• Alternative technologies: Familiarity puts internet centre stage
• TV viewing: Consumers want to stay tuned
  • Figure 6: Number of television sets, 2004-08
• Screen size still a big issue
  • Figure 7: Where the television is watched, 2004-08
• Internet usage: Mobile driving ' access all areas'
  • Figure 8: Internet usage frequency, 2007-08
• Mobile internet: Part of the daily routine
  • Figure 9: Methods of accessing the internet when away from home or work, July 2008
• Broader Market Environment
• Key points
• The recession: Mobile TV is a luxury we can live without
  • Figure 10: UK unemployment rates (seasonally adjusted), 2004-08
• Consumers plan to trade down on price
  • Figure 11: Plans to cut back on mobile phone usage given current economic environment, October 2008
• The supply side: To innovate or hibernate?
• An ageing population structure: Can' t watch, won' t watch?
  • Figure 12: Trends in the age structure of the UK population, by gender, 2004-14
  • Figure 13: Adult population trends, by lifestage, 2004-14
• Mobile web use led by young
  • Figure 14: Demographic profile of PC-based and mobile internet active audiences, by age, Q3 2008
• Socio-economic trends: Upward for mobile
  • Figure 15: Adult population trends, by socio-economic group, 2004-14
• Convergence: Functionality we have, content we need
• Digital Britain: Mobile high on the agenda
• Competitive Context
• Key points
• How will we watch? It' s smartphone vs media player
  • Figure 16: Trends in portable digital device usage, 2007-08
• Content: What will we watch?
• Mobile internet a valuable source of content
  • Figure 17: Most popular mobile websites, Q3 2008
• Rival functionality: Will we watch?
  • Figure 18: Mobile phone features used and features downloaded, 2004-08
• Strengths and Weaknesses in the Market
• Strengths
• Spread of technology
• Breadth of appeal
• Content inventory
• Mobile internet growth
• Content-sharing habits
• Weaknesses
• The economy
• Predominance of pre-pay
• Screen size
• Consumers' lack of knowledge
• Content convergence
• Market Size, Segmentation and Forecast
• Key points
• Mobile TV and video still a minority channel
  • Figure 19: Mobile TV and video market size, by volume, 2005-14
• Video the entry point to new mobile market
  • Figure 20: Mobile TV and video market segmentation, by volume, 2005-14
• TV viewers more valuable, but video offers spin-off gains
• 3G: The ball starts rolling
• TV and video viewing: The pea starts rolling
• Movio grinds to a halt as Lobster clams up
• Big online brands ready for mobile action
• Brand Communication and Promotion
• Key points
• New tactics in advertising
  • Figure 21: Advertising spend in the mobile handsets and networks sector, by media type, 2006-08
• Brands talk, but consumers listen to each other
  • Figure 22: How consumers find out about new technology, June 2008
• The price must be right
• Green light for Bluetooth
• Mobile video on TV
• Companies and Products
• BBC iPlayer
• ITV Mobile
• Sky Mobile TV
• Who Watches TV and Video on Mobile Phones?
• Key points
• Frequency of watching content
  • Figure 23: Frequency of watching mobile TV and video content, January 2009
• Who watches? Not many of us...
• Who watches: Detailed demographics
  • Figure 24: Frequency of watching mobile TV and video content, January 2009
• Women catching the viewing habit
• A democratic medium?
• TV versus video: Youth vote is split
• Where Do We Source our Mobile TV and Video Content?
• Key points
  • Figure 25: Where people source mobile TV and video content, January 2009
• Security blanket offer little long-term comfort for networks
• Fixed web habits migrate to mobile
• Where material is sourced by frequency of viewing
  • Figure 26: Where people source mobile TV and video content, by frequency of viewing, January 2009
• Knowledge gap needs to be filled
• Consumers catch up with convergence
• Mobile video: A social phenomenon?
• What Sort of Content Do We Prefer?
• Key points
  • Figure 27: Preferred mobile TV and video content, January 2009
• Kings of content: Useful and usable
• Mobile video: Generating content, not consuming it
• Preferred content by frequency of viewing
  • Figure 28: Preferred mobile TV and video content, by frequency of viewing, January 2009
• Access and availability are key influences on content choice
• Experienced viewers are most adventurous
• Appendix -- Where Do We Source Our Mobile TV and Video Content?
  • Figure 34: Most popular sources of mobile TV and video content, by detailed demographics, January 2009
• Appendix -- What Sort of Content Do We Prefer?
  • Figure 35: Most popular types of mobile TV and video content, by detailed demographics, January 2009
  • Figure 36: Next most popular types of mobile TV and video content, by detailed demographics, January 2009