Why Mobile TV is going down in Korea?
Posted: December 10th, 2008, by Yunho ChungThe world’s first Mobile TV, SDMB, was launched in 2004 followed by TDMB in 2005. Mobile TV was expected to make ‘Mobile Broad Casting’ popular and thus people were watching on how it went. Especially, T-DMB penetrated into Saudi Arabia, Norway and Vietnam and still in progress.
While it is globally expanding, Mobile TV in Korea seems getting unsuccessful. - Even though subscriber are increasing in Korea, players are in the red for their business.
DMB subscribers and viewers are increasing as above and ETRI forecasted that DMB viewrs in Korea will be more than 30 million by 2012. However DMB providers still cannot make money from their business since they started DMB service in 2006.
What causes this situation?
1. Weak revenue model
TDMB is soley based on Advertising revenue, and the growth is sluggish. Because of small viewer base, it is unattractive medium for the advertisers. Additionally, KOBACO, the public organization that distributed all broadcasting ads in Korea, applied the same assessment criteria for TDMB. Only for a few cases, TDMB could qulify for the stardards.
2. Poor contents
Mobile TV is a personal media, for which viewers watch only in specific situations such as in the subway etc. But the TDMB players are mostly terristrial broadcasters and thus only try to re-transmit their used contetns without producing new contents for DMB. Smaller players tried to produce contents exclusive for DMB but failed to achieve the economies of scale. This in turn failed to allure more viewers and showed vicious circle.
3. Slow advance
TDMB tried to generate additional revenue from TPEG(the convergence service with navigation) and interactive shopping service. It can’t be achieved by themselves but need partnership from other players such as telecom, homeshopping, etc. But each party pursued their own interests and thus the business advances so slowly.
Media business by its own nature cannot get into stable phase so quickly, and we should not judge so hastily.
But unless the players and regulatory make the wise solution for those problems, we may not see the ’successful mobile TV’
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