Mobile TV Tops 17 mil. Users

There were more than 17 million mobile TV users in Asia at the end of 2007, according to new analysis from Asia Media Journal publisher, Media Partners Asia (MPA). Operators of mobile TV services are struggling however, constrained by regulatory and commercial barriers, with business models incorporating a mix of both free and paid services increasingly seen as critical to profitability and growth.

Subscriber growth was boosted last year by platforms using free and pay models in Asia’s two largest markets for mobile TV, Korea and Japan, as well as new rollouts in Malaysia, the Philippines and Vietnam. Meanwhile, new launches are expected this year in China, India, Indonesia, Singapore and Taiwan. 3G adoption is also growing, increasing by 38% in 2007 to top 128 mil. users, a viable critical mass to drive up interest in mobile video streaming, says MPA.

In Japan and Korea, existing business models for mobile TV remain unprofitable however. Japanese broadcasting regulations prohibit advertisers from generating profit and restrict content developers from producing exclusive programs for mobile. Similarly, government regulation is limiting opportunities to generate advertising revenue in Korea, while a subscription-based mobile TV operator, TU Media, is experiencing substantial losses because of competition from free services. The near-term solution in these two markets will likely take the form of a subscription package incorporating both conventional free-to-air channels and a sample of premium channels.

The findings form part of new report published today by MPA, ASIA PACIFIC PAY-TV AND BROADBAND MARKETS 2008, which measures the consumption and value of multi-channel video and broadband services over multiple distribution networks including cable, satellite, fiber, ADSL and mobile across 16 markets in the region.

Lower economic growth could limit near-term demand for pay-TV and broadband in mature markets, as well as restrict the scope for advertising growth, while global financial concerns will limit the availability of capital in emerging markets, the report says. These risks may be offset by robust levels of regional economic growth however, which should help bolster demand and advertising prospects as well as financing options and M&A.