Mobile: pay-per-channel or aggregation model?
Steve Safran October 6th, 2006
You’re seeing two models developing in the mobile video space: the pay-per-channel model (see: CBS O/O sites) and the aggregation model (see: MobiTV). So the question is: which model is more likely to work? I tend to think aggregation is the way to go. It seems like you get more choices for your money. On the other hand, with the cry for a la carte cable pricing, there’s clearly demand for channel-by-channel choice. So, LR Faithful, whaddya think? What model would you want? Would you pay $4.99 a month for mobile access to content from your local TV station?
2 Comments Add your own
1. fred graver | October 6th, 2006 at 7:10 am
The aggregation model helps the phones to further brand themselves as lifestyle devices, and to “upsell” their customers. (If you’ve bought a phone lately, you know that they give you lots of video, games, etc. free for a month or two, knowing full well you’ll never call to cancel…)
2. Alan A. Reiter | October 8th, 2006 at 2:47 am
I’ve been analyzing wireless for 28 years and have been examining mobile TV since it began overseas.
Aggregation and per-channel are both likely to be accepted, although the more popular will be aggregation because of the greater number of programs for a reasonable flat monthly fee.
(Not all aggregation will make sense, however. In the non-wireless space, for example, AT&T’s Broadband TV offers a poor selection of channels for $20. It’s a dud unless AT&T can offer more and better cable channels).
I watch virtually every mobile TV channel available (although I’m not a regular viewer of most of them). Although there are many more programs than most people realize, the cellular operators have done a terrible job of marketing the wealth of programs available and a terrible job of enabling subscribers to organize their own channels.
Also, navigation is a mess.
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