While big-name media conglomerates scramble to find ways to leverage the “third screen,” a handful of wireless companies are slowly gaining traction by offering content from hometown TV newscasts.
Local Solutions Network, an Atlanta-based mobile content delivery company, has quietly inked deals with local broadcasters in more than 100 markets to provide breaking news, sports and weather information to wireless users. The firm has deals securing deck placement on three of the four Tier 1 carriers-an agreement with T-Mobile USA Inc. is expected in coming weeks-allowing users to visit ad-supported WAP sites that mirror stations’ home pages.
Subscribers can access everything from national stories to local high-school sports to weather radar maps though the service. And LSN, which also has agreements with a handful of newspapers, is set to launch a video offering designed to deliver streaming clips of local news stories.
“It allows local consumers and residents within each market throughout the country the opportunity to get locally branded content, news, lottery numbers and high-school information,” said Lee Durham, founder and president of LSN, of his company’s service. “We just think (local content) is something that’s going to explode.”
Durham isn’t the only one who thinks so. MedaFlo USA Inc., Qualcomm Inc.’s $800 million network set to come online later this year, is working with local stations to help them expand their content to mobile phones. Belo Corp., which owns 19 television stations across the country, earlier this year teamed with Weathernews Americas Inc. to deliver local wireless programming for $5 a month. U-Turn Media Group, which is headquartered in the Czech Republic, delivers ad-supported video content from local stations in California, Wisconsin and Washington; the company plans to announce two more carrier partners this month.
While mobile-phone users may be unwilling to shell out $10 or $15 a month for a “basic cable” package of a few national networks, they might be interested in sitting though a marketing message or two to access wireless broadcasts of their favorite local station, said Izzy Abbass, who oversees U-Turn’s North American operations. And the opportunity to see familiar faces on the small screen may spur uptake by consumers who might not explore mobile video otherwise.
“We think that local stations are going to be a big driver of video services in the U.S.,” Abbass said. “It’s compelling content … and stations are going to promote this. When a trusted voice in the community starts promoting this, it removes a barrier to entry.”
Indeed, local stations view wireless as the new Internet: as a way to increase reach and build brand recognition as it generates advertising revenues. Broadcasters are actively touting their wireless content on their Web sites, and have crafted all-encompassing contracts with advertisers that include placements on the air, online and on wireless handsets. And they’re hoping to use mobile marketing campaigns as they increase awareness for both their own brands and those of their partners. Weather content could include coupons for ski resorts, for instance, or a sports report could offer two-for-one tickets to an upcoming game.
“The stations go out there and work with advertisers; they’re working with the McDonalds and the Fords,” Durham said. “The carriers are smart enough to know, `We’re not going to make a million dollars off this, but our brand needs to be everywhere.”‘
U-Turn North America, which is based in Denver, uses a Java-based application to deliver its video content, while LNS’ service is WAP-based. LNS claims 13 employees and the 4-year-old company is already profitable, Durham said; U-Turn has yet to turn a profit.
Regardless of the differences in strategy, though, both LSN and U-Turn are looking to duplicate a simple business model that has had success both on television and the Internet: local content supported by advertising revenues.
“We just don’t think consumers are going to pay for something twice,” Durham said, taking note of carrier data charges. “We don’t think they’ll pay for something they can get somewhere else free.”
