NBC, MobiTV to compete with Apple in on-demand TV : Move highlights how networks, carriers test wireless TV waters

NBC Universal will expand its partnership with MobiTV to offer on-demand hit television shows such as “The Office” and “Heroes” to U.S. wireless users.
The broadcast company said it plans to offer a 24-hour viewing period for some of its top-rated shows starting at $2, although carriers will be allowed to set their own rates. The deal also includes content from “Battlestar Galactica” from the Sci Fi Channel, USA Network’s “Monk” and other offerings from Telemundo and Bravo.
The pay-per-view service is set to compete directly against Apple Inc.’s iTunes, which sells full episodes of more than 200 shows-including shows from NBC-starting at $2 each.
“This is an extraordinary partnership with MobiTV and we’re excited to be the first major network to offer our viewers wireless access to their favorite primetime shows on demand,” said Jean-Briac Perrette, president of NBC Universal Digital Distribution, in a prepared statement. “In addition, this groundbreaking deal . will create another platform for NBCU’s partner advertisers to reach their advertising audience.”
MobiTV offers a variety of wireless video programming on a subscription basis to a handful of carriers, but the deal is among the first to bring high-profile, primetime shows to mobile phones in an on-demand format.
And while wireless video has been available to U.S. consumers for several years-MobiTV’s partnership with NBC dates back to 2003-the announcement also underscores how carriers and content owners in the space are increasingly experimenting with new business models. In addition to the pay-per-view offering, NBC will launch five new, ad-supported channels that will deliver “select short-form programming” from the company’s networks. Subscribers to MobiTV’s basic offering will be able to access ad-supported episodes of NBC’s “Friday Night Lights” at no additional charge.
As mobile video begins to get legs-or continues to languish, depending on your perspective-the new offerings may prove compelling to consumers unwilling to shell out $20 a month for on-the-go broadcasts. A report last year from Telephia indicated that subscribers of MobiTV and Verizon Wireless’ Vcast service spend nearly $40 more per month overall than non-viewers, but such users continue to account for just a tiny fraction of the overall mobile market.
U.S. operators, meanwhile, offer a variety of mobile TV services at anywhere from $10 a month to $25 a month, sometimes in addition to data charges. But one Nokia Corp. study from late 2005 indicated that half the participants in a trial of mobile video services thought 10 euros-about $13-was a reasonable monthly rate.
MobiTV is available to subscribers of Cingular, Sprint Nextel Corp. and Alltel Corp. as well as more than a dozen other carriers around the world.