Closer than you think
If M-Mobile, a subsidiary of Pay-TV purveyor MultiChoice has its way, scheduled live mobile TV broadcasting – otherwise known as digital video broadcasting (DVB-H) – is close to becoming a reality in South Africa.
Though M-Mobile CE Linda Vermaas declined to comment on specifics, Naspers (M-Mobile’s parent company) in a recent report released by Merrill Lynch is said to have invested close to R450m towards developing its mobile TV and broadband services. With TV now set to enter a new era, Naspers has since offered to buy rival media group Johncom’s 38,56% stake in MultiChoice in a move to consolidate its holding in the Pay-TV operator.
But despite the cash so far pumped into M-Mobile, concerns about mobile TV’s viability in the SA market are ringing loud. "It’s a service that will appeal mainly to a niche as opposed to the mass market," says Arthur Goldstuck, executive director at research house World Wide Worx.
The high cost for DVB-H enabled handsets is also likely to hamper uptake. However, a new generation of young technology savvy individuals – aptly referred to as the iPod generation – could nevertheless provide some encouragement to M-Mobile TV’s prospects.
Says telecoms analyst Richard Hurst: "I’m sure that they won’t be targeting the old TV consumer – the guy who sits in front of a TV set passively absorbing whatever’s on the box. M-Mobile’s target market is likely to be the trendier and younger communications-focused audience. It’s a risky venture, but whichever way one looks at it, M-Mobile has simply taken a bold step to meet demand ahead of the future."
Since launching test transmissions of its DVB-H service 12 months ago, Vermaas says consumer response to the concept of high quality TV on cellphones has been encouraging. "It mirrors a substantial body of international research that’s yielded very encouraging consumer buy-in."
But she’s dismissive of concerns that handset pricing could hamper adoption. "Initially, DVB-H handset prices are likely to be high. However, such prices typically often come down quickly and that would trigger mobile broadcast TV to reach a broad spread of consumers rather than merely a niche market."
MTN, which is participating in the DVB-H trials, has been encouraged by consumer response to the service. Ashraff Paruk, MTN GM of business strategy, says the response from current subscribers – plus formal research conducted by MultiChoice – indicated that there’s scope for mobile TV in the SA market.
"The only concerns raised by consumers so far have been with regard to uncertainty concerning pricing of a future potential commercial service," says Paruk.
Peter Matlare, Vodacom executive director in charge of commercial services, says potential subscribers have warmed to DVB-H trials that the company has been conducting on behalf of MultiChoice. Vodacom also offers a mobile TV service, with 22 channels on its Vodafone live portal. However, its service differs from DVB-H in that it’s merely a 3G-streamed technology while DVB-H is a true broadcast technology.
FINWEEK
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