iPhone shows the way for mobile TV

0. Summary

1. The iPhone' s impact on mobile TV and video will increase as Apple' s distribution strategy matures

• 1.1 Apple has distributed the device in a limited number of markets
• 1.2 Exclusive MNO agreements have constrained the iPhone' s market share and kept prices high
• 1.3 Changes to Apple' s strategy, some of which are already underway, could increase iPhone' s market share

2. The iPhone is well suited to deliver mobile TV and video

• 2.1 The iPhone user interface and the services available via the device are compelling
• 2.2 Several consumer studies have shown that iPhone users are particularly likely to access mobile TV and video content

3. A rapidly increasing range of TV and video content is available on the iPhone

• 3.1 iPhone users can access TV and video content from a variety of sources, using several distribution methods
• 3.2 iPhone users are able to easily purchase and view iTunes video content
• 3.3 The iPhone provides access to streamed video services, including YouTube and catch-up services from broadcasters
• 3.4 Enthusiasts already sideload DVDs and recorded TV programmes to their iPhones
• 3.5 Slingbox, which is supported on several smartphones, is not yet available on the iPhone
• 3.6 Improved TV and video applications will be enabled with forthcoming 2.0 iPhone firmware

4. The iPhone supports multiple delivery methods for mobile TV and video

• 4.1 The iPhone uses a multi-distribution approach, which will be further improved with 3G capability
• 4.2 Sideloading plays a vital role in the provision of compelling mobile TV and video services on the iPhone
• 4.3 The iPhone' s support of WLAN access brings significant advantages for users wishing to access mobile TV and video services indoors
• 4.4 The arrival of the HSPA-enabled iPhone is expected in 2008, and will complete the iPhone' s arsenal of mobile video and TV delivery channels

5. The impact of the iPhone on the mobile TV market depends on a number of factors

• 5.1 The iPhone allows MNOs to support high mobile TV penetration, without waiting for mobile broadcasting technologies
• 5.2 The iPhone has a window of opportunity in the mobile TV market and its impact depends on future iPhone developments
• 5.3 The iPhone could have a significant impact on the development of the mobile TV market
• 5.4 The iPhone could remain a niche product for mobile TV and video delivery

Actions

• Figure 0.1: Distribution methods for mobile TV and video content accessible with the 3G iPhone in 2H 2008
• Figure 1.1: Global cumulative sales of iPhones, June 2007 to December 2008
• Figure 4.1: Distribution methods for mobile TV and video content accessible with the 3G iPhone in 2H 2008
• Figure 5.1: Comparison of 3G network traffic required to support 20 minutes of mobile TV usage per user per day for a number of implementation options
• Table 1.1: Details of iPhone market launches
• Table 1.2: Customer bases of iPhone partner MNOs as a proportion of the total mobile user base in all six markets, December 2007
• Table 1.3: iPhone handset pricing at launch
• Table 3.1: Sources of TV and video content available for the iPhone
• Table 3.2: Examples of TV and video content available from the iTunes Store
• Table 3.3: Bitrates used for video content available on the UK iTunes Store, May 2008
• Table 3.4: Examples of PC cards allowing free-to-air TV broadcasts to be recorded and then sideloaded to the iPhone
• Table 4.1: Distribution methods for mobile TV and video content accessible with the 3G iPhone in 2H 2008
• Table 4.2: iPhone tariffs available in all countries
• Table 5.1: Key criteria needed for the iPhone and iPhone services to have a significant impact on the mobile TV market over the next two years