Mobile TV Users Grow, But No Proven Business Model Yet

The number of individuals using mobile television (Mobile TV) continues to increase steadily, yet a sustainable and proven business model has not yet been established within the sector, according to a recent study by InfoCom.

The study indicates that Japan, South Korea, and Italy are leading markets for mobile TV services. However, user growth in these regions is primarily driven by free or partially free access and a wide availability of mobile devices. Advertising-funded, free-to-air services are dominant in Japan and South Korea, whereas subscription-based models prevail in most other countries. Subscription services typically offer between 2 and 60 TV channels for a monthly fee ranging from €1.00 to €17.00. Despite this, these services have struggled to attract a sufficiently large paying customer base. Third-party providers have ceased commercial operations in Japan and Germany, citing a lack of cooperation from local mobile operators and limited channel and device selection. Mobile operators generally remain hesitant to collaborate with broadcasters and service providers, although new partnerships are beginning to form. An ongoing battle over technical standards, particularly between streaming and broadcasting technologies, is hindering market development. Currently, most mobile TV offerings in Western Europe are delivered over 3G networks, but there is a notable shift towards broadcasting standards like DVB-H over other competing standards.