Less than six months after its commercial launch, mobile TV vendor MediaFLO USA Inc. is in the midst of an executive shuffle.
Dan Novak, who has been the public face of MediaFLO at trade shows and other industry events, is now playing a key role in corporate marketing at MediaFLO’s parent company, Qualcomm Inc. He no longer has a direct role at MediaFLO.
As VP of programming and advertising at MediaFLO, Novak had been spearheading Qualcomm’s push into the broadcast mobile TV space by focusing on content deals and advertising opportunities with programmers and cable and TV networks. Many network executives worked closely with Novak as he brokered deals to bring their programming on board.
A MediaFLO spokeswoman confirmed Novak’s departure and subsequent move to the parent company.
Mike Bailey, MediaFLO VP of programming, and Michael Boyd, MediaFLO VP of licensing and research, are filling the roles Novak left behind, the spokeswoman added.
Hybrid model coming?
The change comes as entertainment insiders are beginning to privately question the model MediaFLO has pursued thus far. Most agree that it’s still too early to talk about the future of MediaFLO, which is only available via Verizon Wireless; they say it’s more important to build awareness with consumers and focus on getting more eyeballs glued to the small screen. But few believe the eight-channel lineup, which is purely live and re-broadcast TV, is enough to drive the promised explosion of mobile TV into more hands.
The platform is poised to become more diverse, however, as MediaFLO looks to launch clipcasting and datacasting services. The company has talked about the technology as an evolutionary step toward a hybrid offering between live broadcast TV and on-demand programming that, in addition to video, would include simple information such as stocks, weather and sports updates.
Most agree that on-demand content would substantially increase the scope of MediaFLO’s reach, but at this point it appears equally important for MediaFLO to glean positive first impressions from early users.
Indeed, the infant mobile TV market can be proud of its accomplishments to date; a survey done by the Mobile Entertainment Forum found that mobile television has the highest satisfaction rate of mobile data applications for Americans, at 37%. However, that service was one of the least-familiar applications to survey respondents.
Most subscribers to the MediaFLO-powered service consistently talk about the “wow” factor they get when showing the service to others, but networks, MediaFLO and others clearly want the market to move beyond that initial phenomenon. Branding could be partially to blame for some of the confusion: the service is called Vcast Mobile TV on Verizon Wireless; AT&T Mobility has yet to announce what it will label the service when it launches later this year; and MediaFLO is striving for its own brand name awareness with sponsorship deals and the like. And that doesn’t even take into account the other mobile TV services.
Usage numbers, churn
MediaFLO does not release figures on the number of users, uptake or churn. And the networks delivering programming on the service are also left in the dark. They get reports on the overall number of viewers and say the numbers they’re seeing are in line with other mobile TV services in the market, but none would disclose specifics.
Verizon Wireless and MediaFLO declined to answer questions about usage and turnover, and both directed RCR Wireless News to the other company for more information.
“I can confirm that customers are enjoying Verizon Wireless Vcast TV and we are pleased with the customer response as the service continues to be introduced in markets throughout the country,” Verizon Wireless spokeswoman Brenda Raney wrote in response to questions. Any other information about their products is considered confidential, she added.
M:Metrics Inc. tracks mobile video usage, but admits that respondents are still confused between broadcast and programmed video, making specific data on broadcast mobile TV usage tough to discern. Marketwide figures on average mobile video usage, however, showed a relative spike in April across all viewing categories.
More than 338,000 subscribers watched programmed mobile video almost every day over the three month average period ending in June; however, the number topped 358,000 subscribers in the three month average period ending in April. Again first-quarter figures were better than second-quarter numbers. More than 2.7 million subscribers watched programmed mobile video at least once a month during the three month average period ending in June, and nearly 2.8 million subscribers watched at least once a month over the three month period ending in April, according to M:Metrics.
International trials
As it continues to expand MediaFLO, Qualcomm is pushing full steam ahead with trials in Taiwan and Malaysia. The San Diego-based company reached a deal with Maxis Communications Berhad and ASTRO All Asia Networks plc to conduct a technical trial of the MediaFLO technology in Malaysia.
Expected to begin in the fall, the trial is set to feature 25 live content channels, which dwarfs the eight-channel offering MediaFLO has commercially launched in the United States. The trial will also include clipcasting media, or short-form content that can be stored on the mobile device to view at a later time.
Malaysian telecommunications provider Maxis will review the results of the trial in Kuala Lumpur as it looks to commercially deploy mobile broadcast TV services next year.
Qualcomm is pushing its international efforts by focusing solely on the technology, letting operators and other partners work out programming lineups and business models. There’s been a significant push in Asia of late; particularly following the setback the European Commission dealt the company last month when it officially endorsed the competing digital video broadcast-handheld standard for mobile TV services. Although the commission has thus far held off on mandating DVB-H as a standard for broadcast mobile TV services, it has said it may choose to do so after looking at progress in the field next year.
DVB-H is a technology backed by a number of European heavyweights including Nokia Corp.
Qualcomm is taking a similar approach to its trial in Taiwan.
“Rather than purchasing spectrum and establishing a subsidiary like MediaFLO in the United States, we are looking to partner with local companies in Taiwan who are in the best position to deploy mobile TV services based on MediaFLO,” a spokeswoman wrote in response to questions.
At an industry seminar in Taiwan last week, Qualcomm pushed for “the creation of a new entity-a MediaFLO Service Operator like MediaFLO USA-which would be directly responsible for acquiring spectrum, working with regulatory agencies, wireless operators and content providers to launch a nationwide MediaFLO service,” the spokeswoman said.
“The MFSO could take a variety of forms. It could be a joint venture with Qualcomm and another company or group of companies, or it could be a completely independent entity without any Qualcomm investment. Currently we are exploring all possible options in Taiwan,” she added.
