"Inevitable:" New way to describe Mobile DTV in the US. 40% of population to have MDTV before 2012

I've been party to discussions on several public forums and in person regarding mobile digital TV (MDTV).  Many of them seem to pit people from the cellular world against the broadcast world.  The arguments from the cellular side, if I could be so bold to summarize are: "you will fail if you don't make the end user pay for every bit that goes through your network." 

The broadcast-based proponents are saying, "the free-to-air/advertiser supported business model has been pretty successful for nearly a century. MDTV is just a little more of the same."

Who knows? The cellular guys could be absolutely right. But that doesn't seem to actually make a difference to the broadcasters, who seem to be pressing on, regardless.  The latest news is from the Mobile Content Venture (MCV) is a commitment to turn on 40 MDTV stations in 20 markets by the end of 2011. The announcement promised:

"...a commitment to upgrade TV stations in 20 DMAs in order to deliver live video to portable devices.  By late 2011, the venture will deliver mobile video service in markets representing more than 40% of the US population.  The service will initially consist of at least two ad-supported free-to-consumer [emphasis added] channels in each market. Additional channels and markets are expected to be added over time.

In 2011, MCV expects to offer the mobile video service in the following markets: New York, Los Angeles, Chicago, Philadelphia, San Francisco, Dallas, Washington D.C., Atlanta, Houston, Detroit, Tampa, Phoenix, Minneapolis, Orlando, Portland, Cincinnati, Greenville, West Palm Beach, Birmingham, and Knoxville.

MCV looks like some heavy hitters to me.  It's a joint venture of  12 major broadcasters and network owned-and-operated (O&O) stations that includes Fox, ION Television, NBC and Pearl Mobile DTV, LLC. The Pearl member companies include: Belo Corp., Cox Media Group, E.W. Scripps Co., Gannett Broadcasting, Hearst Television Inc., Media General Inc., Meredith Corp., Post-Newsweek Stations Inc. and Raycom Media.

In an article in TVNewsCheck.com, author Harry A. Jessel quotes Salil Dalvi, co-general manager of MCV:

"A free service would speed consumer acceptance and encourage the manufacture of devices able to receive the service, Dalvi said. “We recognize that this is a product that is going to have zero subscribers, zero users on day one.

“One of the key elements of the ecosystem is to get going with devices,” said Dalvi. “The best catalyst for doing that was to make content available at no direct cost to the consumer other than the device itself… so that [they] have that opportunity…to sample the product and get accustomed to consuming the content on the platform.”

What does this mean? Exactly what I've been saying here: Consumers are ready for the ad-supported free-to-air business model and broadcasters (and advertisers and program producers) all understand how it works. All the same people who've been working together for years continue working together in exactly the same way they're accustomed to.

Just as important as consumers getting a taste of the service is the clear signal to semiconductor and consumer products vendors to start making a variety of equipment. And with players like FOX and NBC, those vendors will start noticing.

Hey, I like being an "AlphaBoomer." Marketers may discover life doesn't end at age 54

When Nielsen Research set up its age categories for TV market research nearly 50 years ago, the edge of the earth was age 54. Nobody paid much attention to those in the 55-64 group. If you were running a TV network, all you wanted was 25-54-year-olds and you didn't really care about the older group who (as we all know)  favored reruns of The Lawrence Welk Show, Matlock and Murder She Wrote.

According to NBC Universal, there's a new demographic to be reckoned with, which they dubbed "AlphaBoomers." An article by John Consoli in MediaWeek, points out that, in the US, someone turns age 55 every seven seconds and these 35 million people control nearly $2 trillion in annual spending.  The article also says there are severe misperceptions about the 55-64 age group.

NBC research and a survey it commissioned of people in the 55-64 demo counters common perceptions that they make less of an income and spend less on advertised products; are technophobic and brand loyal, and therefore, cannot be motivated to switch brands.


NBC Universal, of course, has some powerful self-interest here.  Programming like NBC Nightly News and CNBC tend to attract these older viewers but don't necessarily attract enough advertising income. By expanding the definition and emphasis on the 55-65 demographic, NBCU is trying to bring more advertisers to these stalwart properties.

More good news about Alpha Boomers:

...AlphaBoomers have a median household income of  $69,000, dwarfing that of those under 25 ($27,000), 25-34 ($58,000) and close to those 35-44 ($75,000).
 
* AphaBoomers spend more on home improvement products, home furnishing, large appliances, beauty and cosmetics and casual dining than adults 18-49.

* A similar percentage of AlphaBoomers have high-definition TVs, use DVRs and broadband as adults 18-34

* 70 percent of AlphaBoomers buy at least one product a month online

* 59 percent of AlphaBoomers send text messages via their cell phones 

“This is not something that is just going to affect NBCU,” Wurtzel said. “Down the road as more people leave the 25-54 demo, it will affect every network.” 

Soap Operas? Yes, I think so. NBC Launches Mobile TV Channel with Unilever

If you remember your broadcasting history, the term "soap opera" came about because soap manufacturers produced the dramas that aired on the radio during the day... the time that housewives -- the target demographic -- were home listening to the programs and the soap commercials.

In that grand old tradition, NBC and Unilever are setting up a one-year mobile video "channel" called "Dove Good2Go. Accessible by cellphone, the channel will provide clips from 30 Rock, America's Got Talent, Friday Night Lights, Parks and Recreation, and the traditional soap opera, Days of our Lives.

Does history repeat itself?  In this case, if you point your mobile phone browser to m.nbc.com/good2go you will be stepping back to the 1920s, just like the radio listeners of yesteryear.

The most important thing about this is that it is clear that the brand-name companies such as Unilever, are jumping on board the TV bandwagon, just the same as the soap companies did years ago.

It has always been my contention that mobile TV would take off when its business model matched the one that has been working quite well for the past 70 years or so. It's tough to make it work when you demand consumers pay for individual programs or spend a high percentage of their monthly bill on limited program options.  However, when you offer ad-supported content at no charge to the audience, things will start to take off.