Mobile TV Mike Short Vice President, Research & Development - Group Technology , O2 plc mike.short@o2.com Roles of Arqiva and O2 ARQIVA Transmission network End-to-end system Content Research data O2 Identify/recruit 375 customers who reside and ‘roam’ in trial area Supply handsets Provide customer care Research data Commercial Confidential Worldwide Developments Korea – Commercial Service – Spectrum allocated for two networks - commercial services in 2006 Italy – by 2010 – USA – 300K subscribers forecast to grow to 6.6M TU Media Commercial service 2007, TIM and Mediaset Finland – License tender issued by Finnish Government to be awarded in early 2006 Commercial Confidential Why trial Mobile Broadcast TV? Pre-Trial research showed strong consumer interest - 56% said good/really good idea 23% said they would take up service within 12 months Mobile phones are no longer just “phones” – Creating content - cameras – Being entertained – games, music, tv – Multimedia devices UK market for mobile content was £600m (2005) Global Interest – evidenced by many trials worldwide and commercial service announcements (20+) Timeline – Mid-term update Network Build Testing Analysis Trial Began May Recruitment Triallist rollout 29/30th Sept Launch event 22nd Sept Testing & recruitment began 5th Sept Mid-term update early 2006 Trial end Spring 2006 Results Spring 2006 What we couldn’t trial One or Two-way radio Media Rich Interactive Services – Web-links – Interactive content – Mobile Commerce Regional Services or Targetted Advertising More than 16 channels or “made for mobile” content Advanced features such as ‘Catch-up TV’ Me TV’ and ‘See But … we also knew what the cellular demand was This could all add up to a ‘Personal TV’ experience Participating channels Market research Usage of service – Where, when, how often, how long TV service’s appeal & acceptance – Number & type of channels Adequacy of the trial services – Quality (picture and sound), reliability, enhancements coverage, Take-up intentions – Likelihood and any barriers Value and payment preferences – Explore subscription/pay as you go/pay per view etc Current TV Service Received of Triallists Average TV Viewing: 3.4 hours a day Standard Analogue 32% 4% 5% 4% 14% 27% Freeview Receiver 22% 18% Cable TV 15% 28% 1 hour or less 5 hours 2 hours 6 hours 3 hours 7 hours+ Commercial Confidential 4 hours Satellite TV 32% Usage Levels – How Much (%) Weekly Viewing Over 3 hours per week Viewing Durations Average 23 minutes per session Wide range of viewing durations Includes short and long-form programmes *How long on average do you watch the mobile tv service at any one time? Usage Levels – Where (%) 80 70 60 50 40 36 30 23 20 21 7 10 0 1 Home At work/ uni Bus Car Wait for others 2 Pub 1 On street Month 2 *Q Where do you use the service most often (%)? 3 Bus stop Usage Levels – Time of Day 9am 6 pm *Q When do you use the service most often? Usage Levels – Time of Day Viewing Peaks Breakfast/Morning Commute Lunchtime 00 0 :0 0: 0 :0 :0 24 22 0 20 0 :0 18 0 :0 :0 16 0 :0 12 F in P ilo t 14 0 0 :0 :0 10 0 :0 06 08 0 0 :0 :0 04 02 00 :0 0 Early Evening O x fo rd T ria l *At what time of day do you watch the mobile tv service most often? Category Champions (%) 16 channel line-up Proving very popular Evidenced by 83% satisfaction level Channel Branding Important ‘Made for Mobile’ content needs more development Most Popular Genres News, Soaps, Music, Docs, Sports Lunchbreak - favourite daytime soaps Other Feedback High Satisfaction Levels 83% satisfied or better with the service Satisfaction Drivers Choice of channels High Picture and Sound Quality Electronic Services Guide (ESG) High Take-up Intentions 76% of triallists would take up service within 12 months at an acceptable price This demonstrates that the majority of triallists are prepared to pay for a service Other Feedback Consumers also interested in: Digital radio channels PVR type functionality Interactive services Web links to broadcaster/other content Number of Channels 16 channels is felt to be adequate choice Next Steps Trial Results Release more results as the trial progresses Government Keep Government informed of our findings Make spectrum issues clear to Government Delivery partnership Explore collaborative UK cross-industry co-operation Conclusions High satisfaction and clear consumer demand Home usage has exceeded our expectations Channel choice is a clear driver of usage Today channel brands offer the strongest category champions ‘Mobile TV’ alone does not convey the demand we have seen in Oxford so far ‘Personal TV’ will take us beyond broadcasting as we know it today