Video streaming gets ready to deliver: streaming multimedia to the wireless device is more promising than it may appear

America's Network, July 15, 2004 by Joan Engebretson

Before long, Idetic may be able to sell airtime for ads to run specifically on MobiTV. Those ads would be inserted in the same spaces where cable operators insert their local ads.

"We launched the service six months ago and weren't planning on monetizing this the first year, but I think we'll do it sooner because the subscriber growth is so good," says Scanlan. Until then, MobiTV is running the national feed in those slots, which the cable networks sell to advertisers at a discount with the understanding that ads may be bumped by local advertisers.

MobiTV ads also would be able to leverage the interactive nature of wireless phones. People could push a key or series of keys to ask for more information on a product, for example.

LOOKING AHEAD

Because streaming multimedia is still a nascent market, it exhibits some quirks that are unlikely to continue as the technology matures.

For example, MobiTV, RealOne Mobile and 1KTV all use their own internally developed software, requiring users who want to access all three services to have multiple programs on their handsets and to switch from one to another when they want to change what they are watching. That's a situation that users are unlikely to tolerate long term.

Eventually, each of these companies may find itself specializing either in the content or the technology, rather than both as they do currently. Sooner or later, content owners may want to assume more control, and companies such as Idetic, RealNetworks and V-Star increasingly may find themselves licensing the technology or selling software to other companies.

Freed expects wireless multimedia streaming services to ramp up quickly, within two to three years. "The early return compared to PC usage is at least as encouraging," says Freed, "and the ramp rates may be more encouraging."

Beyond reality TV

Six young adults living together and making their most intimate moments available to viewers nationwide. No, it's not MTV's The Real World, the reality show that helped start the whole reality TV craze. In fact, the six young adults don't actually live together. They're actors pretending to live together. And it's not a TV show.

It started out as an episodic Web site, where each character posted twice-weekly text entries and occasionally appeared in streaming video. But now it's also available as streaming multimedia (recorded voices with accompanying still images) in a form that can only be seen through Sprint PCS Vision phones. It's The Spot, produced by Cyber Oasys Corp.--and the story line that you see on your cellphone is a little different from what you see on the Web site. Either version of The Spot can stand alone, says Cyber Oasys president Roberta Jean Smith, "or you can look at both and it's a richer experience."

"We've always been interested in this notion of convergence, There's been a lot of talk about it, but not much has happened," says Smith, who believes The Spot is the first truly converged content offering. "We think cross-platform is where it's going to happen."