January 10, 2005
Your Favorite TV Show Is Calling
With quality video cell phones on the way, media companies are thinking small, reports Business Week in an article recapping entertainment companies foray into broadcasting shows on cell phones.
"FOX's thriller 24 is already a major TV hit in the U.S. and across much of Europe. And now a scaled-down version of the show is coming to an even smaller screen -- the one on your cell phone.
Later this month, Fox Broadcasting Co. will roll out one-minute "mobisodes" -- mobile episodes, get it? -- of 24 on Europe's Vodafone Group PLC network. And starting in February, Verizon Communications' U.S. subscribers may be able to get mobisodes of the show on their cell phones, too. If 24 is a wireless hit, the media giant may follow up with other programming, including reality shows.
With an estimated 170 million phone users out there, it's a potentially huge market. Industry analyst In-Stat/MDR figures the cell phone video market will generate just $32.7 million this year, but that could jump to $1.9 billion by 2008. The question is, will Americans want downsized video -- and if so, can companies make money on it?
How will companies make money?
"Subscriptions could be one way. MobiTV has signed up roughly 100,000 customers who pay $10 a month for more than 20 cable channels. Verizon and Fox won't reveal the per-mobisode price for 24. But Warner expects to charge as much as $5.99 for each snippet of The OC Insider; it will also offer the show as part of a $24.99 yearly subscription to a fan club. Others plan to sell ads. Mobliss, a Seattle marketing firm that also makes original programs, is working with Nike Inc. and Coca-Cola Co. to cram product placements into its shows.
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