Neville Meijers on how Qualcomms broadcast TV tech is scaling for 2010.
These are interesting times for Qualcomm’s FLO mobile TV subsidiary. Having established its B2B distribution model via deals with Verizon Wireless and AT&T in the US, it’s just gone direct-to-consumer for the first time, with the launch of its FLO TV Personal Television device.
ME sat down with Neville Meijers, SVP and GM of FLO International, to find out more. Starting with that PTV device.
“We’re very excited about the launch – it’s been planned for a long time,” says Meijers. “It’s a culmination of pulling together the technology, D2C billing and customer care, as well as making sure we have the right distribution partners and the right device in the market, with the right price point and content.”
However, Meijers is less forthcoming when asked to talk about how FLO TV sees the PTV fitting into its existing activities. For example, what kind of consumer will buy a standalone device rather than subscribe through their mobile operator?
“It’s difficult to speculate right now, since it’s only just launched,” he says. “As we grow that base, we’ll see how those segments play out.” Presumably FLO has its own ideas about who the new device is aimed at, but for now it’s not saying.
Operator business
What about the core MediaFLO business through Verizon and AT&T? Earlier this month, the latter reduced the price of its FLO-based mobile TV service by a third, to $9.99 – a move welcomed by Meijers.
However, he says the big change this year has been the expansion of its US coverage, which now encompasses nearly 200 million people. “In the last six months, we’ve been able to do nationwide [marketing] campaigns, which we couldn’t do in the past because we didn’t have nationwide coverage,” he says.
It seems consumers are giving mobile TV a go again, too, having been put off in the past through their early experiences of 3G TV services.
“The downfall of mobile TV in the past has been that the quality of service isn’t guaranteed,” he says. “It took a long time to initiate the connection, the frame-rate was pretty poor, and the quality varied according to how many people were connected and watching at the same time. That slowed down consumption of video.”
His point is that usage is accelerating now, whether due to technologies like MediaFLO, or the launch of mobile TV applications that stream over Wi-Fi.
Apps away
Hang on, mobile TV apps? Aren’t they a rival technology to FLO? Companies like MobiTV are working hard to produce live TV apps for broadcasters and brands, which could be construed as competition for FLO. Meanwhile, BSkyB – which has run trials with MediaFLO in the past – recently launched its own iPhone app for live telly.
“It’s a very encouraging trend,” says Meijers. “There’s an explosion in how consumers are consuming video outside the home, and these technologies are very complementary. With MediaFlo, we’re seeing between 25-30 minutes use per day, which is 750 to 900 minutes a month. It shows there’s this insatiable demand for consumption of video.”
“The more content that is distributed across mobile platforms, the better,” says Jerry Hanley, VP of business development at MediaFLO. “We’re very encouraged that Sky did that iPhone app – it shows there’s a demand.”
However, Meijers does chime in with some criticism of apps that rely – as Sky’s does – on Wi-Fi availability. “Wi-Fi tethers me to one place – if I walk outside, I won’t have access,” he says. “A broadcast network allows me to take the content with me wherever I go.” He also points out that if 50 people are all trying to watch TV over the same Wi-Fi connection, it won’t scale.
Social aspects and Europe
One of the main feature changes in MediaFLO in recent times has been the addition of on-demand options to complement the live broadcasting. However, there’s also some intriguing new social functionality, allowing viewers to invite friends to watch shows with them, or chat about them on social networks like Twitter.
“There are device complexities that need to be overcome, but obviously it’s much easier to do that using a netbook or a smartbook,” says Meijers.
Ah yes, smartbooks – a term coined by Qualcomm to describe mini-laptops powered by its chipsets, with the first one from Lenovo having been unveiled last week. “Paul Jacobs has announced that MediaFlo will be part of the smartbook strategy, and it’s fascinating working to optimise it for these devices,” he says.
Finally, the perennial question – when is MediaFLO going to gain any traction in Europe? Meijers says Qualcomm remains keen to bring the technology to this side of the Atlantic, particularly in major markets like Germany, France, the UK and Russia. However, availability of spectrum, licences and the hurdle of rival technologies that have already been specified continue to act as barriers.
“The UK in particular is an interesting market for us,” he says. “MediaFLO could be a great asset for use during the Olympic Games in 2012, for example. We are having a number of different conversations around that.”
However, an additional barrier to a more widespread launch of MediaFLO in Europe is the economic climate. “Right now, for a lot of broadcasters their focus is on survival, so for some mobile television is currently a luxury,” he says.
It seems clear that the US will remain the key focus for FLO in the coming year. “2010 for us is all about scale, with our wholesale partners Verizon and AT&T, and with our D2C business with Audiovox and the Personal Television device,” says Meijers.
Advertisement
