BBC Finds Tepid Interest in Mobile TV

The BBC has decided not to go forward with ambitious mobile TV syndication plans, in another sign of lackluster consumer interest in mobile TV. In a year-long trial with top mobile operators (save O2) the BBC found limited interest among users. According to a published report:

The 12 month trial was held by the BBC last year in partnership with Orange, Vodafone, T-Mobile, 3 and Sky. A subsequent BBC consultation document said the trial results ‘suggested that the level of demand for content delivered via 3G is uncertain and may, at least in the short to medium term, be relatively small’.

At its peak, only 580 users per day accessed the BBC’s TV channels during the trial.

Apparently however the BBC still has plans to stream Olympics coverage to mobiles. 

These findings are consistent with limited consumer interest in the US in "mobile TV." Mobile video continues to grow as a broader category; however consumers have little interest in paying premiums to watch TV on their handsets. Pricing and user experience are the central challenges for mobile TV. As part of a bundle to lure subscribers into an "unlimted" tier of service, mobile TV may have some appeal. 

However given increasing price competition among US operators such deals may be unprofitable for both them and the mobile TV vendors. Eventually we predict that TV subscription revenues will provide only a small amount to the involved parties and most of the "mobile TV" revenues will come from advertising. There may eventually be some appeal for on-demand programming on a per transaction basis, but that will probably need to wait for 4G.