Indias mobile TV services to reach $360-mn

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India's mobile TV services to reach $360-mn

Springboard Research predicts 12 million subscribers to use Mobile TV service in the first year of launch

Wednesday, March 05, 2008

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NEW DELHI, INDIA: India's market for mobile TV services is estimated to be $360 million in 2008, according to the latest report by Springboard Research, titled 'Mobile TV in India: Understanding the Mobile Entertainment Needs of Indian Users.'

Mobile TV is a technology that allows people to view regular live television content on their mobile phones or other mobile devices that they get through traditional cable or pay TV subscriptions at home.

The Springboard Research report says that in the first year of operation, mobile TV could reach a penetration level of 5 to 6 per cent of the total mobile subscriber base in India.

"Mobile TV marries the two dominant consumption trends of entertainment and mobile telephony in India," said Ravi Shekhar Pandey, manager- Syndicated Research at Springboard Research.

"The market is ripe for the launch of mobile TV services and we believe India will have around 12 million mobile TV subscribers within the first year of launch of service," said Pandey.

Demand from mobile users

According to the report, 84 per cent of mobile phone users are interested in using Mobile TV service provided the service is commonly available and affordable.

Close to 60 per cent of these will prefer watching the same content they get on TV at home.

News, sports, music videos and game shows were the four dominant types of content the surveyed users will prefer watching on mobile TV.

These findings are based on a survey conducted among 1,215 mobile users in six major Indian cities by Springboard Research.

"A majority of mobile users in India are interested in trying out mobile TV and would invest in new handsets for using the service. This willingness is definitely a positive sign for those considering offering mobile TV in one of the world's largest and fastest growing mobile services market," said Pandey.

Operator scenario

Public service broadcaster Doordarshan is the only company currently offering limited mobile TV service.

The report adds that in the recent months, the market has seen increased activities from various stakeholders including technology providers, network equipment vendors and mobile service providers.

Nokia, Spice Telecom, Qualcomm and Samsung are few of the stakeholders actively promoting the adoption of Mobile TV in India.

"Mobile telephone operators will have an advantage over standalone mobile TV operators in that the former already have users subscribing to their value-added services. However, the success of either operator will be dependent on content offered and price charged for the service," added Pandey.

One of the recommendations in the report is that service providers should offer on-demand, pay-per-view option that does not tie a user to a monthly subscription for Mobile TV.

Springboard also recommends close cooperation between mobile operators and broadcasters for a profitable business model for mobile TV service in India.

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