Why Mobile TV Will Eventually Be Free

Predictions

from the look-at-the-trends dept

We’ve been less than bullish on the idea of mobile broadcast TV for some time. There are a number of basic problems with the idea, as many are trying to implement it. First, it’s still not a great viewing experience. Beyond the small screen and the choppy picture, watching TV on the go requires you to basically be sitting around doing nothing for a while. It might work for those who commute on public transportation every day… but beyond that? Then, there’s the rise of “time shifting” TV. Thanks to TiVo there’s simply not as much demand for watching TV live. On top of all of that, though, is the cost issue. If people are going to use mobile broadcast TV, they have to understand why it’s valuable, and with mobile operators looking to charge around $10/month for the privilege of watching a few choppy channels on a tiny screen… it’s a tough sell. The folks over at MTV are suggesting that going free and ad supported might be the best way for mobile broadcast TV, noting that “free is always good for the consumer.”

It’s good that some people are starting to realize this, but it’s not a question of whether or not free is the right model, but a recognition that it’s likely to be the only model. It seems like everyone investing big money in the mobile broadcast TV market are ignoring the growing competition from “place shifting” efforts from companies like Sling and Orb. In both cases, these companies will let users access their home TV (including their DVR) from mobile devices — and both only charge for the hardware, rather than an ongoing service fee. So, if your choices are spending $200 on a box that lets you access your home TV with its 200 channels and full access to your TiVo from anywhere in the world using any computer or mobile device… against paying $10/month for a limited selection of choppy live programming just on your phone, it seems like the place shifting companies have an advantage. Add to that the fact that it’s only a matter of time until cable and satellite providers start including Sling/Orb functionality directly into their existing set top boxes… and the pure play mobile broadcast TV efforts seem a lot harder to justify. Of course, then we’ll have to deal with the mobile operators complaining that their unlimited plans are being overused, while demanding that they be able to block TV viewing on phones, as it impacts the integrity of the network.