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Leveraging Mobile Video - Management Research Report - Marian Zinn

Leveraging Mobile Video - Management Research Report - Marian Zinn



Marian Zinn's final management research project for his Bachelor degree is titled "Leveraging mobile video: an investigation of sustainable business strategies for content providers". The paper ...

Marian Zinn's final management research project for his Bachelor degree is titled "Leveraging mobile video: an investigation of sustainable business strategies for content providers". The paper examines how media businesses can integrate the mobile platform into their content distribution strategy to monetise the growing commercial value of mobile video.



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    Leveraging Mobile Video - Management Research Report - Marian Zinn Leveraging Mobile Video - Management Research Report - Marian Zinn Document Transcript

    • London Metropolitan University (London Metropolitan Business School) - North Campus, Holloway Road, London, UK LT3P18N LEISURE AND TOURISM MANAGEMET PROJECT MANAGEMENT RESEARCH PROJECT “Leveraging mobile video:an investigation of sustainable business strategies for content providers”Student Name: Marian ZinnStudent Number: 09000016Supervisor: Daniela BartosovaConvenor: Karl RusselSemester: Autumn 2011/2012Submitted: Week 12 – 11 January 2012Word count: 7210 words
    • Management Research Project Individual Assignment - 09000016 Supervisor: Daniela BartosovaModule – LT3P18N Leveraging Mobile Video London Metropolitan UniversityABSTRACTDemand for mobile video is growing exponentially. This raises the question as to how mediabusinesses can integrate the mobile platform into their content distribution strategy. The purposeof this paper is to identify the factors that may affect the commercial success of mobileentertainment services and suggest appropriate strategies to leverage the value of mobile video.The aim of the paper is achieved through means of an explorative literature study of relevantsources. Firstly, it provides a conceptual framework of the mobile video industry. Secondly, itpresents a means to understand the management issue by analysing the current market trendsand strategic challenges. Thirdly, it presents tactical aspects that need to be considered whendevising a mobile video strategy. And lastly, emerging business models to monetize video arediscussed.Market predictions identify that the industry is set to move into the mass market in the comingyears. As people increasingly consume video on connected portable devices, content and serviceproviders will have to embrace this medium to generate new revenue streams and to reach a newgeneration of digital consumers.Research findings suggest that a successful mobile video strategy includes achieving a highquality output, rapidly scaling content libraries, efficiently and consistently encoding and deliveringvarious types of high quality content to numerous devices and platforms with appropriate DRM,completing integration across a variety of non-standardised systems, cost-efficiently securingcontent licence rights for a multitude of platforms, as well as implementing effective marketingactivities to drive product adoption.Mobile video is still searching for a mass audience and the ability to build meaningful revenue in acomplex and fragmented landscape. Low profit margins have been barriers to industrydevelopment in the past. Profitable growth for mobile video providers will depend on driving downcosts and finding the right mix of business models that can generate high demand levels byreducing entry barriers for new users. Innovative and original content and marketing strategieswill be the key to driving demand and reducing price sensitivity of potential users. -2-
    • Management Research Project Individual Assignment - 09000016 Supervisor: Daniela BartosovaModule – LT3P18N Leveraging Mobile Video London Metropolitan UniversityTABLE OF CONTENTS 1. Introduction 4 2. Methodology 6 3. Literature Review 7 3.1 Context of the Mobile Video Market 7 3.1.1 Defining the mobile video industry 7 3.1.2 Market Conditions, Forecasts and Predictions 8 3.2 Key Strategic Challenges 10 4. Discussion of Research Findings 14 4.1 Development of a Strategic Framework 14 4.1.1 Content Mix, Quantity and Quality 14 4.1.2 Distribution and Devices 18 4.1.3 Discovery and Marketing 19 4.1.4 Analytics and Market Insights 20 4.2 Business Models & Revenue Sources 21 5. Conclusion and Recommendations 26 6. Acknowledgements 29 7. References 30 8. Bibliography 36 9. Appendices 40 -3-
    • Management Research Project Individual Assignment - 09000016 Supervisor: Daniela BartosovaModule – LT3P18N Leveraging Mobile Video London Metropolitan University1. INTRODUCTIONThis paper examines the current market developments and strategic challenges of mobile videodistribution. It furthermore attempts to evaluate potential content and distribution strategies andbusiness models that can drive return on investment on mobile video for service providers andcontent owners.As a result of audiences moving to mobile devices to consume various types of media, the mobileplatform is emerging as a primary channel for media companies to distribute content and engagewith consumers. Advancements in mobile broadband technology and smartphones are disruptingthe traditional value chain of how video is distributed, discovered and consumed. Video isbecoming a key component of the mobile experience, which is changing the whole economicsystem of the audio-visual industries globally (Sloan, 2009; Feldmann, 2005; Bruno, 2005).Cisco (2011) predicts that there will be over 7.1 billion mobile-connected devices, approximatelyequal to the worlds population in 2015, and a growing percentage of them will have smartphonecapabilities of delivering a good video experience. As smartphone and tablet adoption increasesand high-bandwidth wireless networks become more widely available, there is a growing demandfor rich media content. Global mobile data traffic nearly tripled for the third year in a row in 2010with mobile video traffic exceeding 50% of all traffic in 2011 (see Appendix 9.1, p.40) (Ofcom,2011; Pearson, 2011). Mobile video and TV services are fast becoming an essential part ofconsumers’ lives and demand is predicted to move into the mainstream in the coming years(Duryee, 2010; Tuzman, 2009). Reedy (2008) states that worldwide revenue for mobile contentincluding TV, video, games and music will exceed $16bn by 2015.Clearly mobile video creates huge profit potential and is about to build critical mass. Thesedevelopments offer exciting opportunities for media companies to exploit new sources of valuecreation. David Chamberlain, principle analyst at in-Stat commented that "...people love theirvideo. They are starting to watch it at more times and in more places. Now youve just got to finda way to hook a business model to a usage model" (Reedy, 2008).Considering the transformation of the media landscape, as a result of disruptive technologicaldevelopments and changing consumer behaviour, it is becoming essential for managers of mediacompanies to understand the wider competitive environment and market trends impacting themedia industries. Media content providers need to embrace mobile as a medium to generate newrevenue streams and to stay relevant with a new generation of Internet and tech savvy audiencesin an increasingly mobile-driven world (Snider, 2008).Media managers have to identify marketing opportunities and try to develop and implementstrategies to monetize the mobile platform effectively, as a complimentary element of anintegrated multi-screen distribution strategy. Knowledge of how to take advantage of mobilevideo technology is crucial to generating great returns on investment (Anderson, 2006). -4-
    • Management Research Project Individual Assignment - 09000016 Supervisor: Daniela BartosovaModule – LT3P18N Leveraging Mobile Video London Metropolitan UniversityA key management issue is the process of decision-making and planning to develop new mobileservice offerings and devise appropriate strategies to attract and engage with key audiences.Developing sustainable business models to exploit commercial value lies at the core to profitablyleveraging mobile video (Tuzman, 2009).The paper attempts to answer the following research question:With mobile video transforming into a mainstream market, what strategies should contentproviders apply to build an audience and monetise their content?The aim is to determine how media businesses can integrate the mobile platform into theircontent distribution strategy to exploit the growing commercial value of mobile video.The following objectives help to achieve the research aim and provide a structure for the paper:  Conduct a literature review to identify the notion of the management issue.  Define the context of the mobile video market, including market conditions, forecasts and predictions.  Demonstrate the strategic challenges faced by mobile content providers.  Investigate emerging business models and strategies to reach mobile audiences and to make video financially feasible on the mobile platform.  Produce conclusions and recommendations that can serve as guidelines for mobile media content providers and suggest further research. -5-
    • Management Research Project Individual Assignment - 09000016 Supervisor: Daniela BartosovaModule – LT3P18N Leveraging Mobile Video London Metropolitan University2. METHODOLOGYThe following section describes and offers a rationale for the methods that were used in order tocollect information to answer the research question.In this paper, the author initially undertook a broad approach towards collecting research acrossa wide array of secondary sources, which was then narrowed down and followed by a review ofrelated literature. Considering the fact that the mobile video industry is still in its infancy,consequently the availability of empirical research and theoretical concepts for the commercialmanagement of mobile video content distribution is very limited.Therefore the sources of secondary research used are primarily based on trade press andnewspaper articles, conference papers, market research reports, and corporate whitepapers,commenting on the formation of a new audio-visual content medium. It needs to be taken intoconsideration that at this point only a small amount of relevant market research is available inregards to consumer behaviour, price sensitivity, as well as industry best practices.The most important resources for the main section of this project that were used to developknowledge and insight about the mobile video industry, included: An Industry Conference attended by the author in October 2011 (Mobile Video Industry Summit 2011; Informa Telcoms & Media) Live Webinars (Brightcove; Brand Republic; RealSEO, OneToOne) Industry Whitepapers and Trade press articles Market research from companies including In-Stat, ABI Research, JupiterResearch, Cisco Systems, Mintel, Ofcom, Pyramid Research, Nielson Research and Visiongain Industry Associations (Open Mobile Video Coalition) Thought leaders in mobile entertainment (e.g. Klepp, JT) Leading Mobile Video Technology Solution Providers (Brightcove, KIT Inc., QuickPlay Media, Thwapr Inc.)Due to time limitations, this paper focuses on secondary data sources. It is recommended toconduct primary research to confirm the findings of this paper. -6-
    • Management Research Project Individual Assignment - 09000016 Supervisor: Daniela BartosovaModule – LT3P18N Leveraging Mobile Video London Metropolitan University3. LITERATURE REVIEWThe purpose of the following literature review is to identify the notion of the management issue,which was defined in the introduction, based on debates on the future of the mobile videoindustry and best practices for potential industry players.This section provides a context of the mobile video market for the reader, including marketconditions, forecasts and predictions. It furthermore demonstrates different authors’ perspectiveson the key strategic challenges faced by mobile content providers, including the current debateon the use of business models to generate value. 3.1 CONTEXT OF THE MOBILE VIDEO MARKET 3.1.1 Defining the Mobile Video IndustryMintel (2011b) provides the following definition of mobile video:“Mobile video content is differentiated from TV by its non-linear, non-live character. Although itmay also be accessed via 3G or mobile web connections, this type of content is typically clips orpreviously broadcast programming and as such may be streamed ‘as live’ or downloaded to the[mobile] device for viewing at a later date.“Chang (2009) defines that the primary means to access mobile video is through ‘Mobile’ devicesincluding mobile phone handsets, tablet computers, e-readers, media players and PDAs, as wellas any other portable device with the capability to connect to wireless mobile broadbandnetworks. In mobile, video can be viewed on an app, a mobile website or over the operators’streaming TV service (Snider, 2008).Parr (2009) argues that the iPhone was the key factor that revolutionized the mobile phonemarket. Its success and demand has pushed the development of smarter phones with improvedvideo capabilities and in turn incentivised the development of technologies and applications thatallow video and multimedia services to be provided through mobile communication networks.With 100m mobile video views happening globally every day and viewing increasing in the USalone by 41% annually, it is clear that the growth of mobile video is substantial (Wearmouth,2011).Snider (2008) and Parr (2009) define that the key players in the mobile media industry includeglobal content owners, mobile network operators, technology service providers, applicationdevelopers as well as marketing and advertising agencies. Both authors state that the industry isin a forming stage of building a complex value chain that enables a sustainable content anddelivery eco-system. Most players are considered to still be in an information-gathering mode todetermine customer behaviours and attitudes, as well as marketing and pricing strategies for -7-
    • Management Research Project Individual Assignment - 09000016 Supervisor: Daniela BartosovaModule – LT3P18N Leveraging Mobile Video London Metropolitan Universitymobile video services. The market can be segmented into premium downloadable video servicesand streaming services, user-generated content portals and live-webcasting video services.Snider (2008) states that new partnerships and strategic consolidations are expected as keyindustry players seek to monetize mobile video traffic and ensure the highest quality of servicefor the end user on mobile networks. He furthermore points out that exciting innovation in mobilevideo is occurring across all key parts of the value chain: devices, distribution, content andnetworks. Wearmouth (2011) concludes that this is being driven by four key factors:  an increasing number of smartphones and tablet devices  the deployment and extension of 3G and 4G mobile network technology  the choice of different viewing models including ad supported and subscription ad free services  the availability of more and better content 3.1.2 Market Conditions, Forecasts and PredictionsDo consumers really want to watch TV and video on mobile devices?Fuller (2011) states that “consumers are hungry for mobile video content” and presents ABIResearch, which predicts that demand in streaming mobile videos will increase global data trafficmore than seven times the current rate by the end of 2012. Wagstaff (2011) supports the growthpredictions by referencing Nielsen research, which reveals that 2010 36% more mobilesubscribers watched video on their phones compared to 2009. Schatsky (2006) presentsfindings of a Jupiter Research study, disclosing that already in 2007 41% of mobile phone userswere interested in accessing video services on their devices.The key demographics driving mobile video adoption are upper teen and young adult marketswith the highest penetration of smartphone ownership. These audiences are primarily usingmobile video for entertainment purposes, as well as news and information gathering (Snider,2008). Wagstaff (2011) points out, that Youtube videos delivered via mobile devices tripled in2010, reaching 200 million views per day. This is another clear indicator of consumer interest invideo on mobile devices.Fuller (2011) claims that the growth in mobile data traffic exceeds the growth in users of video-enabled mobile devices. This means that existing users of smartphones and tablets areincreasing the use of their mobile devices as a medium to consume rich-media content.Schiffman (2008) states that the mobile medium is now as valid a channel for content distributionas the internet, digital television or radio and consumers choose between various deliveryoptions for the same content.Another point of view is presented by Graser (2011) who argues that the number of peoplewatching video on their mobile devices is lower than many people presume. He supports his -8-
    • Management Research Project Individual Assignment - 09000016 Supervisor: Daniela BartosovaModule – LT3P18N Leveraging Mobile Video London Metropolitan Universitystatement by pointing out that only 10% of mobile device owners are responsible for 90% ofwireless network traffic. This indicates that while video gains popularity it is a smaller percentageof people making strong use of it. He argues it will take years before smaller screens can bemonetized profitably to distribute movies and TV shows.What current market trends are encouraging take-up of mobile TV and video services?Cisco (2011) and Schiffman (2008) argue that accelerated adoption of smartphones drivesmobile traffic growth. Smartphone users generate 10 to 20 times more traffic than older devices.The growth in smartphone take-up is the primary driver of increasing use of mobile videoservices. At the same time the cost to the consumer for mobile services has continuouslydeclined (Ofcom, 2011). Research reflects that by the end of 2011 smartphone usage in the USwill reach 50% of all mobile users (Quittschreiber, 2011). Bernstrom (2011) states that thenumber of smartphones in use on a global scale grew by 40% in 2010 to 598 million. With thatfigure forecasted to reach 1.4 billion in 2014, the scalability for mobile video is clearlytransforming. The amount of long-form video viewed on mobile devices is expected to grow asbattery life and processing power of mobile devices advance (Shields, 2010).Warren (2011) and Ostrow (2009) highlight that with the deployment of 4G mobile technologieshigh speed mobile Internet coverage will become wider accessible. At the same time bandwidthcapacity will increase leading to faster and more reliable connections. The increasing availabilityof free public Wi-Fi hotspots is also of relevance. As mobile network connection speedsincrease, the user experience improves, high-definition video will be more prevalent and theproportion of streamed content is expected to grow. As mobile network capacity improves,operators are more likely to offer mobile broadband packages comparable to the pricing andspeed of fixed broadband, which should further encourage mobile broadband adoption (Ofcom,2010; ABI Research, 2010).Warren (2011) and Ostrow (2009) point to the beneficial effect of increasing commercial contentchoices for consumers. The success of the iPhone and iPad has given commercial contentcreators an incentive to make their multimedia content accessible in mobile-friendly formats.Content producers are increasingly formatting content specifically with mobile devices in mind.The rise of HTTP adaptive streaming has allowed commercial content companies to serve liveand pre-recorded video to mobile consumers at bitrates that adapt to a users connection for thebest quality video.Ankeny (2010) and Fautier (2010) write about the importance of a growing number of mobileapplications, media players and mobisites that integrate social networking by allowing users toshare content via sites like Facebook and Twitter. This allows users to direct other users, whoaccess social networks on mobiles, to video content. This ultimately increases the awarenessand discovery of content. Users can instantly broadcast notifications that they are streaming liveor uploaded a new video. -9-
    • Management Research Project Individual Assignment - 09000016 Supervisor: Daniela BartosovaModule – LT3P18N Leveraging Mobile Video London Metropolitan UniversityWhat are the market’s future prospects?Recent market data published by Cisco (2011) reveals that mobile video is a major growth sectorin the coming years. Global mobile data traffic is predicted to increase 26-fold from 2010 to 2015reaching 6.3 million terabytes by 2015. The average mobile connection speeds will continue toimprove globally with average smartphone speeds of 4.4 MBps. Cisco (2011) states that there isa direct connection between increases in speed and increases in usage. Furthermore two thirdsof the worlds mobile data traffic will be video by 2015. Mobile video has the highest growth rateof any media accessed via mobile devices and tablet computers will be the leading mobiledevice for video by 2015. The average smartphone is estimated to generate 1.3 GB of traffic permonth by 2015 from only 79 MB in 2010. Another aspect highlighting the increasing importanceof the mobile media channel is the growth of mobile-only Internet users to 788 million by 2015from 14 million in 2010. The number of mobile video users is predicted to reach 450 million withmobile video consumption surpassing 693 billion minutes by 2015 (Duryee, 2010; Belic, 2011). 3.2 KEY STRATEGIC CHALLENGESThe following section identifies key factors discussed in the literature that prevented the take-upof mobile video purchasing and consumption on a wide scale up to 2011 and currently presentbarriers which industry players have to face. A lack of a viable content delivery infrastructure that allows for consumption of high quality video on the move.Bernstrom (2011) and Hoover (2011) argue that with the accelerated uptake of smartphone andtablet devices, combined with flat rate data plans, an unprecedented strain was put on mobileoperator networks globally. The influx in 3G usage to stream and download video files in recentyears was not anticipated. Limited available bandwidth causes slowdowns especially duringpeak times and networks have not been keeping up with the overwhelming grows in data traffic.Most mobile networks are already congested and are reaching their capacity limits in manymarkets today, which has let to problems such as unreliability, inconsistent speeds and droppedconnections. This heavily impacts the quality of streaming mobile video, because of uploaddelays causing viewing and broadcasting interruptions.Consequently there has been a worldwide trend of mobile operators to move away fromunlimited data plans to set up tiered mobile pricing plans to control data consumption and avoidnetwork overloads (Bernstrom, 2011; Segan, 2010). Duryee (2010) highlights that the currentnetwork scarcity and mobile operators’ moves to data caps have restricted the use of videoservices, which has held back the market in terms of downloading or streaming video via mobilebroadband (Goldstein, 2010; Kiss, 2008). Cisco (2011) supports this view by arguing that low - 10 -
    • Management Research Project Individual Assignment - 09000016 Supervisor: Daniela BartosovaModule – LT3P18N Leveraging Mobile Video London Metropolitan Universitydata caps limit traffic growth and advises operators that network capacity must increase supportconsumer usage trends.The question arises whether the future mobile infrastructure can accommodate mass viewing ofvideo. Klepp (2010) states that significant network upgrades are required, but such upgrades areexpensive and time consuming. A data demand predicted by Cisco will most likely strangle manynetworks, and if the quality of service is not there, there will not be demand (Mintel, 2009b).Bernstrom (2011) and Hoover (2011) are convinced that operators will progressively migrate to4G/LTE networks to solve the bandwidth issue and invest more into the network infrastructure toavoid issues like with 3G in the future. With technological advances being implemented,increased capacity and speeds should directly improve the user experience and drive downcosts leading to reduced data rates and less congestion while improving the quality of the mobilevideo channel (Visiongain, 2011). A lack of tradition for video on the go, as consumers are not as used to the idea yet & limited supply of premium contentMintel (2009b) research identified that the majority of consumers lack a real knowledge of themobile video market in all aspects from what content is available, how they can access it andhow much viewing will cost.Wildstrom (2008) points out that users face the fundamental difficulty of discovering, browsing,and selecting from available services and video clips. There is a need to improve video searchcapabilities of mobile phones to enhance the discoverability of available services and contentrelevant to the user. Segan (2010) furthermore specifies that legal, downloadable or streamingvideo content for most phones is still very limited. Up until now, there are only a small number ofscattered premium services available with offerings fragmented across different operatingsystems offering limited content libraries.Additionally, small screen sizes and low image quality are still major turn-offs for consumerswhen considering to engage with longer video content. Further research is required tounderstand the preferred type and lengths of content people want to watch on their small mobilescreen (Mintel, 2009b). Kiss (2008) states that people see video on mobile in a different waycompared to the PC or television. Mobile video viewers want something they can watch whilethey are exercising, while commuting or whenever they do not have access to a larger screen. Market fragmentation of devices, operating systems, encoding standards and digital rights managementChang (2009) argues that mobile video is still searching for a mass audience in a complex andfragmented landscape. The exploding number of application stores and the vast amount ofphones and platforms in use pose the danger of an increasingly growing market fragmentation.Thwapr (2011), a mobile video solutions provider, states that analytics show that while iPhone - 11 -
    • Management Research Project Individual Assignment - 09000016 Supervisor: Daniela BartosovaModule – LT3P18N Leveraging Mobile Video London Metropolitan Universityand Android-based phones generate the most video views, there are more than twelve operatingsystems including Research in Motion, Windows Mobile and Symbian and almost 30 differenttypes of mobile handsets that make up the total viewing audience (James, 2010). Video formatsare incompatible across different mobile devices, as every device supports different video codec,bit rates and resolutions (Segan, 2010). Mobile screen resolutions, operating systems andfeature sets are constantly in flux, making it very difficult to cost-effectively deliver high-qualityvideo content (Hyland, 2011).Chang (2009) explains that each different platform poses the challenge that it requires newdevelopments, which increases the costs to the supplier and decreases industry profitability.Also as a result of the fragmentation of audiences across devices, and a need for customisedsolutions for each platform, getting critical mass and meaningful revenue becomes harder toachieve. This constitutes a high entry barrier for new entrants into the market.A range of video technology standards are emerging, but neither networks, devicemanufacturers nor content producers are yet willing to commit to one dominant format for theindustry (Mintel, 2009b). There is a need for one solution for all devices and platforms toeffectively reach all potential audiences (Thwapr, 2011; Segan, 2010). Lack of established business models and means to profitably monetize mobile videoSchatsky (2006) predicts that "it is just a matter of time before video services on headsetsbecome more ubiquitous." Julie Ask, research director of JupiterResearch, indicates that "thechallenge is not interest [in mobile video] but rather finding the correct mix of premium contentand price points that is lacking in todays offerings" (Schatsky 2006).Lafayette’s (2008) opinion states that longer term adoption of mobile video will depend more onfinding the right business models and developing appealing content offerings rather than on thetechnology or the devices. Consumers have turned their attention to on-demand content, yet thiscontent is primarily accessed for free, obtained either legally or illegally, and has not proven tobe a revenue generator. Strong competition for new entrants to the market comes from majorplayers like Youtube or BBC iPlayer in the UK, which are providing free access to content onmobiles and take up a major part of video consumption across all devices (Mintel, 2011c).Direct pay through subscription dominates premium mobile video services, but is not attracting alarge user base, which in turn is a necessary criterion for advertisers. The current challenge isthat there is a large interest, but only few consumers are willing to pay larger fees for small-screen video. The growth expectations in mobile video consumption do not match expectationsin revenue growth (Klepp, 2010). According to a QuickPlay Media survey, 58% of those whohave never watched TV on the go rank cost as the top reason for not doing so (Chang, 2009;Lafayette, 2008). - 12 -
    • Management Research Project Individual Assignment - 09000016 Supervisor: Daniela BartosovaModule – LT3P18N Leveraging Mobile Video London Metropolitan UniversitySubramanian (2008) argues that during the initial stages of the diffusion of an innovationprocess, mobile video is primarily used by early adopters who are generally willing to pay foraccess, as they perceive live and VoD content on their mobiles as of a high value. But it needsto be considered that as the industry moves towards mass market adoption in the coming years,there is a need to reduce barriers of entry for new users. The combination of subscription feeand data plan costs is a high barrier to entry for consumers.Sloan (2009) argues that the online world has been struggling with consumers expectations offree content and that in general users object to paying extra for mobile video, but they are opento being exposed to advertising in exchange for free content. Reedy (2008) and Armbruster(2009) in contrast highlight that this conditioning applies less to mobile, as consumers havedemonstrated their willingness to pay for digital content like music and ringtone downloads. Thissuggests that they should be more accepting towards paying for mobile content. But it still needsto be determined how much they are willing to pay for mobile video. Initial research reflects that42 percent of mobile users would purchase a live and on-demand premium video service thatwas priced at $5 per month. A price set at $10 reduces interest to 20 percent (Fuller, 2011;Chang, 2009).For the mobile video industry to become sustainable it needs to be able to generate profitablereturn on investment for all stakeholders. This includes pay back in direct revenue stream,increased brand awareness, cross-sales, and targeted advertising. The challenge remains to findbusiness models that do not rely on subscription and generate high demand levels. The debate in the existing literature clearly agrees on the fact that the demand for mobilevideo is growing exponentially. Market predictions identify that the industry is set to move into themass market in the next couple of years. Nevertheless there are a number of challenges thatneed to be addressed by all stakeholders to effectively exploit the commercial value of video onmobile devices. There seem to be differing views on the issue if mobile video is a profitableindustry in the short-run, as industry players are still experimenting with the right combination ofbusiness models and content strategies. There is a gap of adequate research and industryexperience on content and delivery strategies to attract and retain an audience and on how tomonetise the growing consumption of mobile video profitably. Further research on sustainablebusiness models and content strategies is required. Another area that lacks research isknowledge about consumer attitudes towards paying for content on the mobile device in order todetermine successful pricing strategies. - 13 -
    • Management Research Project Individual Assignment - 09000016 Supervisor: Daniela BartosovaModule – LT3P18N Leveraging Mobile Video London Metropolitan University4. DISCUSSION OF RESEARCH FINDINGSThe following section attempts to define important elements in developing a strategy toeffectively manage mobile video content offerings. This is followed by a discussion of emergingbusiness models that could make video on the mobile platform financially feasible and enableorganisations to profitably exploit future mobile video opportunities. 4.1 DEVELOPING A STRATEGIC FRAMEWORKTo develop a successful mobile video strategy, organizations must address the issues offundamental business models including content acquisition and management, direct-to-consumer delivery and related customer service and support issues, as well as the role ofmarketing to drive product adoption. Brightcove’s “Video Strategy Framework” is used here as astructural guide for the investigation of appropriate methods for organisations to maximize thereturn on their mobile video investments. The following section analyses the key elements of amobile video strategy including content mix, quantity and quality, distribution, devices, discoveryand analytics (Brightcove, 2011; Saxena and Stevens, 2011) (Adapted from Brightcove, 2011: “Brightcove Video Strategy Framework”) 4.1.1 Content Mix, Quantity and Quality  CONTENT MIXThe content mix refers to strategic decisions that need to be made in regards to the contentoffering and management. Content management deals with the processes of digital assetacquisition, ingestion and digital rights management. Every video solution begins with theacquisition of new content, possibly from a variety of sources, and the ability to ingest and - 14 -
    • Management Research Project Individual Assignment - 09000016 Supervisor: Daniela BartosovaModule – LT3P18N Leveraging Mobile Video London Metropolitan Universitysecure this new content. Digital content available includes movies, broadcast programming,music videos, commercials, live and on-demand TV, and user generated video (Saxena andStevens, 2011). Once ingested, content has to be converted into a format that is appropriate forstreaming and playback via mobile devices and then needs to be organized and categorized intochannels for users to easily search and select (Tuzman, 2009; Streaming Media Magazine,2009). Mobile video services typically draw video from four sources: In-house video production,licensed third party content, partnerships with content aggregators or content owners and user-generated content (UGC), which relies on an existing community (Brightcove, 2011).Content choices should be informed by market research into mobile users’ content preferences.Mintel (2011b) research suggests that at this point consumers are more likely to enjoy content onthe go in short format and are not yet at the stage where the idea of consuming longer videos onmobiles is attractive to them. When it comes to timing, the attention span on mobile phones isstill very limited with viewers tuning out and moving on after around 60sec. Any activities whichare easy to start and complete on the mobile in a short space of time are more popular.Research shows that 2-3min get the best engagement results and the first 10-15sec are themost relevant to retain attention (ODell, 2011; Robertson and Pierce, 2011; Tuzman, 2009).2010 data from QuickPlay Media highlights the most favoured content for video downloads wasmusic, followed by entertainment, movie previews and comedy. For live streams the toppreferences were sports, news, weather and comedy, while on-demand video streampreferences included user-generated-content, sports and news (Fraim, 2010)Getting information that has an immediacy and urgency to it, and offering 24/7 access via anymobile phone can be very attractive to consumers. To attract audiences to a video portal, theperceived value offered can be increased by making the content accessible exclusively via themobile and offer something different compared to regular TV programming. Content providersshould offer a variety of highly targeted channels to discrete market segments, realizing that onechannel cannot appeal to all audiences. A multi-channel niche market appeal, which offersrelevant content to highly segmented mobile media consumers is suggested (Klepp, 2008;Ankeny, 2011).Content mix decisions are also concerned with the combination of on-demand and live videoprogramming offered through the mobile channel. A successful mobile video platform shouldhave the capabilities to support video-on-demand with progressive download and streaming ordownload and play, and live stream functionality (Wearmouth, 2011). A mix of on-demand andlive streaming seems to result in the highest growth in traffic, engagement and return oninvestment. Content providers should investigate opportunities to integrate original live streamsto their content portfolio, which are unique to the platform, such as events, webinars,announcements, behind-the-scenes features and other content. Such content seems to have adirect positive effect on on-demand viewership, as viewers become more deeply engaged with abrand. Live stream audiences often come back to a portal to see archived footage and other - 15 -
    • Management Research Project Individual Assignment - 09000016 Supervisor: Daniela BartosovaModule – LT3P18N Leveraging Mobile Video London Metropolitan Universityvideos, signifying increased retention and loyalty rates. Mobile video is also likely to be mostsuccessful when complimenting premium content offerings with UGC. This can potentially pay offin terms of enhanced audience participation and the strong viral nature of UGC. A focus shouldbe put on encouraging customers to use the mobile device not only for viewing, but also as atool to record and directly upload their own content (Brightcove, 2011; Wearmouth, 2011¸ Wray,2009; Reedy, 2008).A QuickPlay Media survey conducted in March 2011 with US mobile subscribers revealed a 94%interest in mobile video services that combine social networks like Facebook and Twitter withmobile video content, providing access to a live interaction integrated with programming. Contentand service providers need to work on enhancing the customer experience by providinginteractive capabilities that combine compelling content with social elements. What this means isthat the video experience should become more than just watching video. It should evolvetowards sharing, chatting, being able to post video to Facebook, and being able to have anongoing dialogue. Interactive services could go even further with new content concepts indevelopment that allow users to participate and influence the story line or be part of the story.Combining video with interactivity and gaming aspects would allow a user to get stronglyengaged. This will be an important factor to increasing long-term subscriber growth and loyalty(James, 2010; Peterson, 2011; Klepp, 2008).Klepp (2010) suggests three likely premium content strategies that will emerge in a growingmobile video landscape:1. The first option is to take an existing live or on-demand stream of content and make it available to the mobile user as a continuous stream (e.g. BBC News or a sports event) as part of a multi-screen strategy. This could be offered by well-known TV brands in partnership with mobile operators or as over-the-top service. Users could tune in for a short time just to pass time or to keep up on the important sports game. This concept is limited by the linear consumption pattern and limited interaction and viral opportunities. The value offered would be relatively low, as the same content is accessed on a small screen like on traditional television.2. The second option is to set up portals that offer specifically made-for-mobile video content as live or on-demand stream. The content programming could be varied to cater to different demographics or the service could be a highly targeted niche content provider. This opens up the mobile space for various new content providers. Anything can be packaged and the key is to provide targeted content and specialised channels, which are categorized based on the type of content. Extensive content libraries can be built and content can be viewed on- demand and can be downloaded, streamed or forwarded, allowing user interaction.3. The third option is a combination of the above, integrating linear existing and made-for-mobile live programming with on-demand content libraries and interactive capabilities. - 16 -
    • Management Research Project Individual Assignment - 09000016 Supervisor: Daniela BartosovaModule – LT3P18N Leveraging Mobile Video London Metropolitan University  QUANTITYDecisions need to be made in regards to the amount of video provided though the mobilechannel. Insufficient video quantity is one of the key barriers to reaching critical mass. Theacquisition of large content libraries is critical to the success of the delivery and management ofvideo content (Hyland, 2011). Content providers should focus on creating rich deep archives, asthere will always be a need for large quantities of good content. A systematic approach toproducing, acquiring and licensing new content is required. Content ingestion needs to have apredictable pattern to retain and grow an audience. A regular frequency of content productionand distribution has a direct effect on engagement and traffic generation. Increasing the quantityof video can be a simple way to increase traffic. Licensing from third-party content providerscould provide an option for cost-efficient access to a large amount of video in a short time and toa wider variety than what can be produced in-house. Content owners may also revisit theiralready established content archives, and could repackage that material for the mobile channel,a strategy that might be less expensive than licensing or producing new content (Robertson andPierce, 2011; Brightcove, 2011; Saxena and Stevens, 2011; Tuzman, 2009).  QUALITYThe quality component of the service offering is concerned with the quality of the video content,as well as the quality of the user experience when viewing content. Each one of these twoelements is essential to build and maintain an audience. The effectiveness in maintaining brandawareness and consumer loyalty as competition grows will depend on how mobile contentproviders can adapt to the consumer demands of high quality and immediacy in the years tocome (Mintel, 2011b; Brightcove, 2011).On the mobile the user is likely to be much less forgiving of lower quality or non-relevantprogramming. Even the best content will not hold viewers if they are faced with stalled or low-definition video, a poorly designed user interface or difficult-to-use player. Detailed attentionmust be given to the smooth delivery of content, as well as the viewing experience from acustomer’s perspective. Fast playback and appropriate video resolution need to be consistent,regardless of connection speed or screen size, providing a seamless, fluid and engaging videoexperience every time on any device and from any location (Brightcove, 2011; Takahasi, 2011).The portal and video player design and usability should be appealing and easy to navigate. Thequality of the viewer experience can be guaranteed through the use of adaptive bitratestreaming, converting a single ingested stream into multiple output streams in real-time. Adaptivestreaming technology automatically selects the most appropriate stream quality (varying bitrates)based on each viewer’s network connection from 2.5G to Wi-Fi connectivity to provide the bestpossible viewing experience. Also a partnership with a reliable Content Distribution Network isadvisable to provide a consistent, reliable and scalable high-quality delivery of video (Brightcove,2011; Takahasi, 2011; Klepp, 2008). - 17 -
    • Management Research Project Individual Assignment - 09000016 Supervisor: Daniela BartosovaModule – LT3P18N Leveraging Mobile Video London Metropolitan University 4.1.2 Distribution and DevicesChannel strategies are concerned with decisions in regards to the management of contentaggregation, storage, and delivery across a complex, multi-device ecosystem. When selecting achannel strategy for the delivery of mobile video it is important to consider the technologicalcomplexity of the mobile landscape, as a result of the proliferation of mobile devicemanufacturers, operating systems, video codecs and browsers. Content providers are underincreasing pressure to ensure their offerings are available at any given time, on any given deviceand in any number of unknown usage scenarios (Mintel, 2011b). It is important to maximizeaudience reach by delivering a consistent video experience across the widest possible variety ofchannels including mobile websites and mobile applications. Video delivery must supporttranscoding into both HTML5 and Flash-based video experiences to be compatible across allavailable browsers and devices. App stores, as well as the mobile internet allow contentproviders to potentially reach global audiences (Brightcove, 2011; Saxena and Stevens, 2011;Clark, 2011).Android phones and the iPhone are currently the leading devices for mobile data consumption.Another channel of growing importance for mobile video distribution is the increasing number oftablet devices. In 2010 three million tablets were connected on the mobile network, generatingfive times more data traffic than the average smartphone. Especially Apple products are themain drivers of mobile video adoption (Cisco, 2011). Consumption patterns differ significantlybetween smartphones, tablets and personal computers. Such differences include content lengthand content genre consumed. For example, tablet viewers watch more video and are willing topay a higher price for that video compared to smartphone viewers (Belic, 2011). The impact ofdevice ownership and usage needs to be taken into consideration when making channeldecisions.Content providers need to establish cost-effective and scalable ways to manage, monetize anddeliver content across multiple platforms and devices. The video delivery infrastructure mustoffer cross-platform and cross-device compatibility, integrating all existing video standards(codecs, formats, delivery protocols) to reach the greatest number of end-user devices. Thisenables the content provider to achieve a wider audience reach in a highly fragmented market,while at the same time offering convenience to users (Tuzman, 2009; Saxena and Stevens,2011; Hyland, 2011, Chang, 2009). The environment in which content is consumed must also besecured with appropriate digital right management mechanisms to ensure all content is protectedand content provider licence terms are met (Hyland, 2011).A mobile video delivery platform requires to be easy to administer and scalable to match theexpected volume of video streams. Managing the complete video delivery in-house is extremelyresource-intensive and costly. Instead of building technologies in-house, an outsourcedspecialist video technology provider might be a cost-effective alternative. Content ownersworldwide have access to a growing mobile video ecosystem including a broad range of expert - 18 -
    • Management Research Project Individual Assignment - 09000016 Supervisor: Daniela BartosovaModule – LT3P18N Leveraging Mobile Video London Metropolitan Universitypartners, pre-integrated technologies and services to support video on mobile devices of anysize and scope in any market. Parts of the mobile video service could be outsourced to reducecosts by offloading resource-intensive processes such as content ingestion and encoding and atthe same time ensuring critical scalability and quality while still maintaining control.Organisations are advised to partner with a Content Delivery Network (CDN) provider capable ofscaling and delivering a reliable and consistent video experience to any device (ODell, 2011;Sloan, 2009; Tuzman, 2009).Content providers should also, if possible, investigate the opportunity to integrate contentstrategies across different platforms enabling a multi-screen experience (e.g. Triple-play strategyof Virgin Media). QuickPlay Media revealed that 48% of current US mobile subscribers areinterested in multi-screen capabilities that allow them to seamlessly switch between multipledevices, such as PC, tablet and smartphone when watching TV programmes or movies. GraeneOxby, Virgin Mobiles managing director said: "A world where you pay for [content] once and canview it on whatever platform you like is a great place to go to..." (Peterson, 2011; Wray, 2009;James, 2010).Content is also increasingly flowing around the traditional gatekeeper channels like mobilenetwork operators. Over-The-Top (OTT) technology enables organisations to bypass traditionalchannels and gatekeepers to open direct relationships with subscribers on mobile devices andthus moving up the digital value chain. Content producers and owners should take advantage ofthis by building direct to consumer channel strategies. By leveraging their brands and taking theircontent archives, live events, and other product direct to consumers immediate value is createdand revenue margins can be retained internally (Saxena and Stevens, 2011). 4.1.3 Discovery and MarketingAnother essential element for a successful mobile video strategy is the way in which an audiencecan find the service and its content. It is of high significance to build public awareness of a videoplatform and enable easy discoverability. In order to reach a wider audience, mobile video needsto be discoverable from various sources and promoted across marketing channels integratingonline and offline media (Sloan, 2009). It will be important to increase the overall awareness ofmobile video services by consumers in terms of what is available, where and for what price.Premium content providers will need to aggressively advertise and send out the right marketingmessages in order to create awareness and interest, to distinguish the service and to entice trial(Klepp, 2008; Mintel, 2011b). Established content owners and aggregators should leverage theircore strengths of brand recognition and existing marketing activities. Anyone consideringentering the market should act quickly and aggressively to fully exploit any first-movercompetitive edge (Saxena and Stevens, 2011). - 19 -
    • Management Research Project Individual Assignment - 09000016 Supervisor: Daniela BartosovaModule – LT3P18N Leveraging Mobile Video London Metropolitan UniversityTools to increase discoverability for video on mobile devices include on-site search, searchengine optimization for mobile search engines and discovery via social sharing.On-site search needs to ensure that users can easily search the complete content library andfind content that interest them while spending time on the video portal. Video search functionalitydeals with categorising content, quickly sorting through video on request and providing relevantresults to the user. Mobile web experiences offer basic search engine discoverability, but mobileapps are not discoverable through mobile web browsers. Apps therefore must be featured invarious app stores. It is important to follow video SEO best practices that enable mobile searchengines to identify video and achieve a high ranking. The subject of mobile search is a processin development (Tuzman, 2009; Takahasi, 2011; Brightcove, 2011).A cost-effective solution is also provided by combining video and social media. By integrating avideo channel with interactivity, an organisation can allow users to help with the marketing.Social discovery, in which users find and share video through social media such as Facebookand Twitter has a potential viral effect, as viewers share and re-share content, adding to theservice’s exposure over time. Research reflects that people who find video content throughsocial media watch video longer. Organisations can integrate email, link and social networkshare buttons in the video player, enable embed codes for sharing, promote social sharing whena video finishes and allow for rating of videos to boost the probability that users will share andrecommend content (Brightcove, 2011; Robertson and Pierce, 2011; Klepp, 2008).Reaching out to third-party sites and app store owners through syndication and marketingpartnerships provides further opportunities to create awareness. Distributing content throughcontent aggregators like Youtube is a free and valuable way of generating first-level awarenessof a brand and content. This is an effective means tab into a large audience and then directpeople back to the organisation’s branded and fully controlled video portal (Brightcove, 2011).Finally, through partnerships with mobile service providers and device manufacturers, mobilevideo services could be pushed more at retail level during the sales process parallel to dataplans. This would enable a salesperson to engage with potential customers to inform them aboutthe availability, pricing and benefits offered by augmented video content services. Through suchpartnerships, video services could also benefit from increased advertising done by mobileoperators, handset retailers and manufacturers (Klepp, 2008). 4.1.4 Analytics and Market InsightEvaluation and measurement activities performed throughout the process of delivering value tothe mobile video customer are an essential element to guarantee customer satisfaction andconsistent improvement of content and service delivery. This directly contributes to the overallreturn on investment for mobile video. There are various digital metric tools available for themobile platform, which can provide vital market and consumer behaviour data. This can offer - 20 -
    • Management Research Project Individual Assignment - 09000016 Supervisor: Daniela BartosovaModule – LT3P18N Leveraging Mobile Video London Metropolitan Universitymanagers insights on how to optimize the mobile video performance (Brightcove, 2011;Wearmouth, 2011).Analytics provide information on the following key performance attributes and consumptionpatterns, which are essential for strategic decision-making:  Essential information on audience demographics and other characteristics  Average-Revenue-Per-User (ARPU)  How do people discover the content?  How effective is the reach on different devices and platforms?  How many views come from iPad, iPhone, Android and other devices?  Viewer activity when spending time on the video portal  The impact of quantity of video on site activity  Which content is most effective in engaging viewers?  How much time do people spend on the site watching content?  Information on average attention spanSuch insights give managers the ability to refine the mobile video strategy by adjusting thecontent mix and quantity, distribution and promotion strategy accordingly. Analytics allow anorganisation to create a more customer-oriented video experience by providing relevant andpersonalized content recommendations to individual users based on learning about theconsumer downloading or streaming history and what the consumer has ‘liked’ or forwarded tofriends. The data can also be used as valuable information to sell advertising space moreeffectively (Brightcove, 2011; Wearmouth, 2011). 4.2 BUSINESS MODELS & REVENUE SOURCESThe following section analyses means to effectively monetize video delivered via the mobile andtypes of emerging business models.Monetization is the revenue generating component of the mobile video strategy. It connectsvideo strategy to business strategy through mechanism such as advertising, m-commerce andpremium content fees (Brightcove, 2011).In simple terms there are two types of business models: 1. Content is sold to viewers (pay-per-view, per-per-download, subscription) 2. The audience (which consumes the content) is sold to advertisers (sponsorships, brand- advertising, product placement)For other businesses the economics might not be in monetary terms, but in improved reputation,efficiency or brand awareness, indirectly leading to higher sales and profitability (StreamingMedia Magazine, 2009). Video can drive business value by increasing customer engagement, - 21 -
    • Management Research Project Individual Assignment - 09000016 Supervisor: Daniela BartosovaModule – LT3P18N Leveraging Mobile Video London Metropolitan Universitybringing products alive and improving communications. This can potentially convert audiencesinto buyers and build a brand image (Robertson and Pierce, 2011). Organisations need toensure that their video solution provides a system that can support all major revenue channelsincluding ad-supported models, pay-per-view and subscription (Tuzman, 2009).eMarketer predicts that mobile video revenues, including direct downloads, subscriptions and ad-supported video will roughly triple between 2009 and 2014 from $438million to $1.34billion in theUS alone (see Appendix 9.2 p.41) (Ankeny, 2010). Nevertheless, the cost side poses a largeentry barrier for mobile video incumbents. Mobile operators have been acting as gatekeeperstaking a large chunk of profits and limiting revenue passed back to content providers. Marginsare lost through revenue share with mobile operators, a percentage of revenue lost to third-partytechnology infrastructure providers, bandwidth data and hosting, as well as marketing andadvertising expenditure. This consequently leads to very small profit margins. As big marketingbudgets are key to generate enough demand to make mobile profitable, smaller players are at adisadvantage to build critical mass. Price floors are very much dictated by revenue shares andprice ceilings by data charges to consumers, as well as their limited willingness to pay higherfees. Current business models for premium content lock content providers into a “low volumes ata high price” economic model, as they have only limited price flexibility in order to generateprofitable returns. With the advent of Over-The-Top content distribution technology, contentproviders will have increasing bargaining power, and might eventually be able to negotiate betterdeals with traditional gatekeepers or alternatively deliver value more direct to consumers (Klepp,2008).Current revenue sources for mobile video services include: Transaction-based fees (Pay-per-download, Pay-per-stream), Subscription fees, Advertising revenue, M-Commerce revenue andBrand Sponsorships (Reedy, 2008; Schlösser, 2011).1. TRANSACTION-BASED & SUBSCRIPTION MODELThe most common methods of monetizing mobile video used by most services up to today havebeen transaction-based and subscription price models for premium content. Transaction-basedpricing includes pay-to-download, pay-to-rent a download (limited time to consume) and pay-to-stream (Mintel, 2011c). Alternatively services offer monthly subscriptions at different price levelsfor unlimited viewing (Klepp, 2010). This allows content providers to bundle content intosubscription packages e.g. a news package or a music and entertainment package (Holland,2006)The way forward as highlighted by Mintel (2011b) points less towards permanent purchase ofvideo, and more towards a "pay to access" system (unlimited streaming or rental model). AQuickPlay Media survey of US mobile subscribers revealed that 44% of respondents wouldprefer to pay for movies on their mobile device via a monthly subscription fee, while 21% opted - 22 -
    • Management Research Project Individual Assignment - 09000016 Supervisor: Daniela BartosovaModule – LT3P18N Leveraging Mobile Video London Metropolitan Universityfor a pay-per-movie rental model and 11% for purchases downloaded to the device (Peterson,2011). Most video content is simply being watched once. Therefore a low-cost, single-viewingoption for video content using DRM could be developed, combined with the alternative of anunlimited access subscription to the complete content library (Reedy, 2008).The key demographics for mobile video include up to 25 and 25-34 years old from the affluentAB income level. They are happy to spend money on low monthly charges that deliver highvolume media access (Mintel, 2011c). Nevertheless, mobile users already have a wide variety ofentertainment choices fighting for a share of their disposable income budget. Further primaryresearch and actual field testing is required to determine the price sensitivity of users andacceptable price points (Holland, 2006).2. ADVERTISING-FUNDED & M-COMMERCE MODELSnider (2008) states that mobile video services could benefit from evolving mobile-specificadvertising and product placements from corporate brands. Mobile services could provide ad-supported, free-to-access content with a focus on aggregating audiences.Mobile advertising expenditure is growing as advertisers start realizing the growing audiencenumber of the mobile medium. Mobile devices are also able to reach new demographics thatusually do not have access to media content. Globally 48million people without electricity athome have mobile phones. Mobile advertising networks cleared an estimated $5.65billionglobally in 2011. The revenue was predicted to reach $6.5bn in the US alone in 2012 and furtherexpand to reach $18bn worldwide by 2015 (Fautier, 2010; Sloan, 2009).Innovative forms of mobile advertising are emerging, which can be exploited for mobile videoservices. Forms of advertising include TV-style pre- and post-roll ads, banner ads on mobilewebsites or apps, flash overlays and interactive layer ads. To maximize the value of the adinventory, organisations need to ensure they can run adverts from a large number of advertisingnetworks, as well as sell adverts in-house (Brightcove, 2011).It is essential for content providers to understand exactly who their target markets are and whattheir specific needs and benefits sought are to build a community around the content, whichprovides a propelling value proposition to advertisers (Klepp, 2008). Advertising revenues areultimately driven by the number of exposures that the advertising will receive. Building a solidaudience base will allow for higher advertising rates (Klepp, 2010). Proving your demographicsand audience numbers is essential as advertisers can then bid for the views you generate(Pearson, 2011; Fautier, 2010). To justify advertising rates, organisations need to provideconcrete and measurable ROI for advertisers (Klepp, 2008).Mobile apps, mobile websites and video players also provide opportunities for cross-selling ofrelevant products or related content. Organisations can use advanced integrated m-commercelike in-player calls-to-action to convert viewers into buyers. In-player purchase links to m- - 23 -
    • Management Research Project Individual Assignment - 09000016 Supervisor: Daniela BartosovaModule – LT3P18N Leveraging Mobile Video London Metropolitan Universitycommerce destinations allow consumers to discover new content and buy related products at thesame time as they watch the content. It is predicted that mobile commerce will be worth$119billion in 2015 (Cook, 2011; Mintel, 2011a; Robertson and Pierce, 2011).3. BRAND SPONSORSHIPSponsorship is a means for content providers to link their mobile presence with well-knownbrands. Branded entertainment deals are a new form of sponsorship-funded entertainmentcontent, promoting exposure to a brand without interrupting the underlying programming. Thereis a need to provide great content, and to be able to service potential sponsors with an attractiveand proven demographic. An additional benefit is the impact of an established brand identity ondemand (Subramanian, 2008; Klepp, 2010)4. BUILDING STRATEGIC PARTNERSHIPSThe growing importance of partnerships between mobile operators, mobile video technologyservices and media content owners needs to be considered.Premium video services are a source of additional value for mobile operators, providing themwith an additional revenue opportunity. Therefore forging innovative partnerships with a widerange of content owners and aggregators, through licensing and revenue-sharing deals, are anattractive option. Mobile operators can offer content owners access to their subscriberrelationships, a lucrative directly accessible target market, as well as their proven customersupport, service provisioning, and content delivery (Saxena and Stevens, 2011). Partnershipsbetween mobile operators and content providers allow for bundled offerings. Premium contentproviders can negotiate revenue shares from a monthly subscription for mobile content services,either as standalone service or as part of a multimedia package of music, games and videooffering cloud-like content access which is directly billed by the mobile network operator (Hyland,2011; Klepp, 2010; Schlösser, 2011).Mobile operators are increasingly teaming up with entertainment companies like Warner,Paramount and Disney to offer movies and TV series on the operator’s network. More examplesof strategic partnerships to enter the mobile video market include Apples’ plans to partner withmajor Hollywood studios to launch a new service in early 2012 enabling consumers to purchasefeature films from its iTunes digital storefront and stream titles from the cloud to the iPhone andiPad. At the same time the major Hollywood studios are working together to launch a new mobileservice called Ultraviolet, which enables consumers to access movies and TV series in the cloudstreamed directly to their web-connected smartphones and tablet computers (Ankeny, 2011¸Snider, 2008; Potter, 2008; Chang, 2009).Another opportunity for content owners are strategic partnerships with content aggregators likeGoogle and Amazon, which are seeking to become one-stop shops for consumer entertainment. - 24 -
    • Management Research Project Individual Assignment - 09000016 Supervisor: Daniela BartosovaModule – LT3P18N Leveraging Mobile Video London Metropolitan UniversityBy forming closer relationships with all types of content providers, aggregators hope to positionthemselves as the single portal for digital entertainment (Saxena and Stevens, 2011).Finally, as we see convergence progress and triple-play and quad-play services reach themarket, larger business models can emerge with the development of multi-screen strategies thatsupport digital video delivery across mobile devices through smartphones and tablets, PC viabroadband, as well as digital television. Such offerings provide users with the convenience ofone simplified billing process to access content through all platforms. At the same time it enablesbusinesses to diversify their revenue streams and spread risks, as well as cross-subsidisedistribution channels to reach and monetize the largest potential viewership. Mobile operatorsand content providers that are unable to tie into triple-play offerings in the future might bechallenged by consumers who are unwilling to pay multiple times for the same content acrossdevices (Schlösser, 2011).It is clear that content-driven relationships will be more important than ever and well-chosenpartnerships may be the key to success for mobile operators and content owners.5. MIXING BUSINESS MODELSSloan (2009) is sceptic about the prospect that advertising alone can sustain a mobile videobusiness, considering expensive bandwidth, infrastructure and hardware requirements as well asvery low profit margins to operate in the industry. Even hugely successful video companies likeHulu and Youtube have yet to generate a profit. Sloan (2009) states “there is no one makingmoney today on ad-supported video where all content is free”.A video platform might need to support one or more business models, perhaps blendingadvertising-, transaction-, subscription- and m-commerce based revenue streams (Saxena andStevens, 2011). It is likely content providers will deploy a mix of business models where somecontent is free and supported by advertising and a small subscription fee will be charged forpremium content. Tiered access models might be the way forward with free basic access orlower subscription for users willing to be exposed to advertising, and up-selling to higher tiersthat provide access to more content or exclusive offerings (Klepp, 2010). Consumers aregenerally receptive to advertising as a trade-off against monthly fees. Advertising revenues cansubsidize the cost of the subscription. Content providers need to find ways to keep the cost tothe consumer down through integration with advertising and sponsorship. Targeted advertisingand discounted premium video services could increase adoption of mobile content, whileimproving the reach of advertisers (James, 2010; Fautier, 2010).Innovative business models must be developed and refined. But achieving the right businessmodel will largely be a matter of trial and error. Nevertheless, in order to build a large audience,ad-funded mobile entertainment is likely to have the strongest impact on the industry combinedwith premium content subscriptions and revenue-share deals (Chang, 2009; Armbruster, 2009). - 25 -
    • Management Research Project Individual Assignment - 09000016 Supervisor: Daniela BartosovaModule – LT3P18N Leveraging Mobile Video London Metropolitan University5. CONCLUSION AND RECOMMENDATIONSIn this paper, we reviewed related literature and conducted research across a wide array ofsecondary sources to identify the factors that may affect the commercial success of mobile videoservices and suggest appropriate strategies to leverage the value of mobile video.A context of the mobile video industry and current market trends have been outlined, which alsoexplored strategic challenges industry players have to face. The paper then provided an analysisof key elements to be considered for a successful mobile video strategy including the contentmix, quantity and quality, distribution, devices, discovery, and analytics. Finally, emergingbusiness models and potential revenue streams to monetize video via mobile-connected deviceswere discussed.Based on the findings, it can be said that mobile is evolving into the "third screen" for consumersto access news and entertainment, and this is radically disrupting the traditional value chain foraudio-visual content. As people increasingly consume video on connected portable devices overthe next few years and move toward a mobile experience in and outside the home, content andservice providers will have to embrace this medium to generate new revenue streams and toreach a new generation of digital consumers.Mobile video has been predicted to be a major growth sector. The industry is in the process ofbuilding a sustainable value chain, as the market is anticipated to build critical mass in the nextcouple of years. Now is the time for content providers to prepare for this influx of mobile videoand prepare their operations and services.Key factors driving adoption that have been indentified in this paper include the acceleratedadoption of smartphones and tablet devices, the progressive deployment and extension of 3Gand 4G/LTE networks, which directly improve the user experience and drive down costs, theemergence of different viewing models including ad-supported and subscription services and theavailability of higher quantity and quality of content.Nevertheless, a number of challenges still need to be addressed by all stakeholders to supportgrowth trends and to be able to effectively exploit the commercial value of video on mobiledevices. Mobile video is still searching for a mass audience and the ability to build meaningfulrevenue in a complex and fragmented landscape. High costs to the supplier and limited flexibilityin pricing decisions, leading to low profit margins, have constituted major barriers to industrydevelopment in the past. Profitable growth for mobile video providers will depend on drivingdown costs and finding the right mix of business models that can generate high demand levelsby reducing entry barrier for new users. Furthermore, innovative, original and unique contentstrategies will be the key to driving demand and reducing price sensitivity of potential users. Ontop of this consumers need to be educated and informed about new mobile video services, andthe public discoverability must be improved. - 26 -
    • Management Research Project Individual Assignment - 09000016 Supervisor: Daniela BartosovaModule – LT3P18N Leveraging Mobile Video London Metropolitan UniversityBased on the research findings, the following recommendations can be given as guidelines forcontent providers to design mobile video strategies: The content mix should be based on a clear understanding of the markets’ needs and wants. Therefore appropriate market research and market segmentation are fundamental to success. A variety of highly targeted channels to discrete market segments mixing on-demand and live streaming premium content offerings with UGC should be designed. The perceived value offered can be increased by providing innovative, original and unique content accessible exclusively via the mobile. The customer experience can be greatly enhanced and long-term subscriber growth and loyalty achieved by providing interactive, social and gaming aspects integrated with the content. The acquisition of a large content library and a predictable pattern of content ingestion are critical to generate traffic and grow an audience. Providing a smooth delivery of content to the customer must be guaranteed every time on any device and from any location. A partnership with a Content Distribution Network that offers cross-platform and cross-device compatibility including mobile websites and mobile applications is advisable to reduce costs, ensure critical scalability and quality and maximize audience reach. Mobile video should be promoted across marketing channels integrating online and offline media. Consumers need to be more informed and educated in terms of what services are available, where and for what price. Creating awareness, differentiating the service and stimulating trial are essential to success. Essential tools to increase discoverability for video on mobile devices include on-site search, search engine optimization for mobile search engines and social media sharing. Evaluation and measurement activities are essential offering insights on how to optimize the mobile video performance to create a more customer-oriented experience. A video platform that can deploy a mix of business models blending advertising-, transaction-, subscription and m-commerce based revenue streams is advisable. Innovative forms of mobile advertising and advanced integrated m-commerce can provide added revenue. Content providers need to find ways to keep the cost to the consumer low through integration with advertising and sponsorship that can subsidize the cost of a subscription/premium access. Content-driven partnerships through licensing and revenue-sharing deals, providing access to an existing directly accessible target market and billing mechanisms, may be the key to success. - 27 -
    • Management Research Project Individual Assignment - 09000016 Supervisor: Daniela BartosovaModule – LT3P18N Leveraging Mobile Video London Metropolitan UniversityIn conclusion, it is recommended to conduct primary research to confirm the findings of thispaper. Furthermore, since the development of the mobile video market is dynamic and fastchanging, this study could be extended in the future as the mobile video market keeps growingand incremental experience is gained by all industry players, including how and to what extentbusiness practices are evolving.At this point there is still only limited available research and industry experience on provencontent and delivery strategies that attract and retain an audience and on how to monetise thegrowing consumption of mobile video profitably. Researching how existing start ups exploitmobile video opportunities and how they manage their content offerings might help to determinewhat combination of business models generates profitable or less profitable margins and whatcontent strategies actually stimulate demand.Other areas that lack research are knowledge about consumer attitudes towards paying forcontent on the mobile device in order to determine successful pricing strategies, as well as aclear understanding of the preferred type and lengths of content people want to watch on theirsmall mobile screen and when and where they consume mobile media. - 28 -
    • Management Research Project Individual Assignment - 09000016 Supervisor: Daniela BartosovaModule – LT3P18N Leveraging Mobile Video London Metropolitan University6. ACKNOWLEDGEMENTSFirstly, the author would like to thank Informa Telcoms & Media for organising the Mobile VideoIndustry Summit 2011. Secondly, he would also like to give thanks to Brightcove, BrandRepublic, RealSEO and OnetoOne, as well as KIT Inc., QuickPlay Media and Thwapr Inc. forproviding free access to rich resources including seminars, webinars, and whitepapers.Furthermore the resources provided by the Open Mobile Video Coalition and JT Klepp have hada strong influence on the writing of this paper. Finally, the author would like to acknowledge theproject supervisor Daniela Bartosova, the module convenor Karl Russel, as well as the librarysupport staff at London Metropolitan University for their continuous academic support and advicethrough the process of writing this paper. - 29 -
    • Management Research Project Individual Assignment - 09000016 Supervisor: Daniela BartosovaModule – LT3P18N Leveraging Mobile Video London Metropolitan University7. REFERENCESBOOKS:  Anderson, Ch. (2006), “Mobile media and applications - from concept to cash”, John Wiley & Sons: London, UK  Feldmann, V. (2005), “Leveraging mobile media: cross-media strategy and innovation policy for mobile media communication”, Physica Verlag: Heidelberg, GermanyJOURNALS, TRADE PRESS & NEWSPAPERS:  ABI Research (2010), “Mobile video services revenue to exceed $2bn in 2013", Total Telcom (Online) Available at: http://www.totaltele.com/view.aspx?ID=457128 [Accessed 23 October 2011]  Ankeny , J. (2011), “Apple prepping movie cloud service", LA Times (Online) Available at: http://latimesblogs.latimes.com/entertainmentnewsbuzz/2011/10/apple-prepping-movie-cloud- service-devices-may-work-with-ultraviolet.html [Accessed 22 October 2011]  Ankeny, J. (2011), “Study: Two-thirds of iPhone users consume mobile video”, Fierce Mobile Content (Online) Available at: http://www.fiercemobilecontent.com/story/study-two- thirds-iphone-users-consume-mobile-video/2011-06-29 [Accessed 22 October 2011]  Ankeny, J. (2010), “Mobile Video to Double Reach by 2013", eMarkter (Online) Available at: http://www.emarketer.com/Article.aspx?R=1007845 [Accessed 23 October 2011]  Armbruster, A. (2009), "Mobile TV Is Next Arena for Advertising.", Television Week; 3/2/2009, Vol. 28 Issue 6, p22-22  Bruno, A. (2005), "Video Gets The Call As Next Big Mobile Thing.", Billboard; 4/2/2005, Vol. 117 Issue 14, p35  Chang, R. (2009), “Mobile Video Gets Ready for the Masses", Advertising Age Digital (Online) Available at: http://adage.com/article/digital/mobile-marketing-mobile-video-ready- masses/138990/ [Accessed 22 October 2011]  Duryee, T. (2010), “Study predicts massive growth in mobile video", The Guardian (Online) Available at: http://www.guardian.co.uk/media/pda/2010/mar/31/mobile- video?INTCMP=SRCH [Accessed 22 October 2011]  Fautier, T. (2010), “Mobile TV is dead; long live mobile video", Broadcast Engeneering (Online) Available at: http://broadcastengineering.com/RF/mobile-tv-dead-0510/index1.html [Accessed 22 October 2011]  Fuller, R. (2011), “How Can Mobile Operators Win with Mobile Video?", Wireless Week (Online) Available at: http://www.wirelessweek.com/Articles/2011/06/Technology-Mobile- Operators-Video-Mobile-Data-Traffic-Usage-Mobile-Video/ [Accessed 22 October 2011]  Goldstein, P. (2010), “Mobile video traffic: Alleviating the capacity crunch”, FierceBroadbandWireless (Online) Available at: http://www.fiercewireless.com/special- reports/mobile-video-traffic-alleviating-capacity-crunch [Accessed 22 October 2011] - 30 -
    • Management Research Project Individual Assignment - 09000016 Supervisor: Daniela BartosovaModule – LT3P18N Leveraging Mobile Video London Metropolitan University  Graser, M. (2011), “Mobile video usage overestimated, report says 10% of users make up majority of traffic", Variety (Online) Available at: http://www.variety.com/article/VR1118030555 [Accessed 23 October 2011]  Hoover, Ch. (2011), “Mobile Video and 4G: As Harmonious As PB&J?", Communications Technology (Online) Available at: http://www.cable360.net/ct/sections/features/Mobile-Video- and-4G-As-Harmonious-As-PB-and-J_46631.html [Accessed 22 October 2011]  HYLAND, M. (2011), “Mobile video", Broadcast Engeneering (Online) Available at: http://broadcastengineering.com/RF/mobile-video-0511/ [Accessed 22 October 2011]  James, S. (2010), “MobiTV exec talks technology, mobile ads, TV Everywhere", SNL Kagan Media & Communications Report (Online) Available at: http://0- www.lexisnexis.com.emu.londonmet.ac.uk/uk/nexis/results/docview/docview.do?docLinkInd=tr ue&risb=21_T13061734000&format=GNBFI&sort=RELEVANCE&startDocNo=651&resultsUrl Key=29_T13061734004&cisb=22_T13061734003&treeMax=true&treeWidth=0&csi=360279& docNo=656 [Accessed 22 October 2011]  Kiss, J. (2008), “Motorola opens up mobile video market with feature films", The Guardian (Online) Available at: http://www.guardian.co.uk/media/2008/jun/09/digitalmedia?INTCMP=SRCH [Accessed 22 October 2011]  Lafayette, J. (2008), "Mobile Offers Opportunities.", Television Week; 11/10/2008, Vol. 27 Issue 29, p4-20  ODell, J. (2010), “The State of Mobile Video: Porn, Flash and Stalling", Mashable (Online) Available at: http://mashable.com/2010/07/29/mobile-video-study/ [Accessed 22 October 2011]  ODell, J. (2011), “Mobile Video Reaches Few Users, Puts Huge Strain on Networks [STATS]", Mashable (Online) Available at: http://mashable.com/2011/03/22/mobile-video- stats [Accessed 23 October 2011]  Ostrow, A. (2009), “Mobile Video is at a Tipping Point", Mashable (Online) Available at: http://mashable.com/2009/06/25/mobile-video-growth/ [Accessed 22 October 2011]  Pearson, S. (2011), “Why mobile is not a medium", Mobile Marketer (Online) Available at: http://www.mobilemarketer.com/cms/opinion/columns/11292.html [Accessed 22 October 2011]  Parr, B. (2009), “What is Mobile Video’s Future?", Mashable (Online) Available at: http://mashable.com/2009/03/08/mobile-video/ [Accessed 24 October 2011]  Potter, D (2008), "On the Go.", American Journalism Review; Aug/Sep2008, Vol. 30 Issue 4, p58  Quittschreiber, J. (2011), "Whats Next for Mobile?", Campaigns & Elections; Jul/Aug2011, Vol. 32 Issue 305, p48  Reedy, S. (2008), "MOBILE VIDEOS FINAL FRONTIER.", Telephony; Nov2008, p24-26, 3p  SCHATSKY, D. (2006), "Content, Pricing Limit Mobile Video Adoption.", Electronic News; 4/3/2006, Vol. 52 Issue 14, p22 - 31 -
    • Management Research Project Individual Assignment - 09000016 Supervisor: Daniela BartosovaModule – LT3P18N Leveraging Mobile Video London Metropolitan University  Schiffman, B. (2008), “Web/Mobile Video Will Overtake TV By 2013: Research Group", Wired Magazine (Online) Available at: http://www.wired.com/epicenter/2008/07/web-video-will [Accessed 24 October 2011]  Schlösser, M. (2011), “The business behind mobile video", Total Telcom (Online) Available at: http://www.totaltele.com/view.aspx?ID=461347 [Accessed 22 October 2011]  Segan, S. (2010), "The Mobile Video Dilemma.", PC Magazine; Oct2010, Vol. 29 Issue 10, p1  Shein, E. (2010), “Mobile Video On Steep Growth Curve", Information Week (Online) Available at: http://www.informationweek.com/news/hardware/handheld/225900157 [Accessed 22 October 2011  Shields, M. (2010), “Mobile video revenue expected to triple", Hollywood Reporter (Online) Available at: http://www.hollywoodreporter.com/news/mobile-video-revenue-expected-triple- 26234 [Accessed 24 October 2011]  Shields, M. (2010), “Mobile Video Ads Set to Soar", Adweek (Online) Available at: http://www.adweek.com/news/technology/mobile-video-ads-set-soar-102969 [Accessed 22 October 2011]  Sloan, D. (2009), “Social Media 101: Mobile Video", Mashable (Online) Available at: http://mashable.com/2009/01/14/about-mobile-video/ [Accessed 22 October 2011]  Snider, M (2008), "Hold the phone to watch TV", USA Today; 04/22/2008  Streaming Media Magazine (2009), “SOLUTIONS AND STRATEGIES FOR CREATING, MANAGING, PUBLISHING, AND DISTRIBUTING VIDEO", Whitepaper Collection (Online) Available at: http://www.streamingmedia.com/Readers/Subscriber.aspx?Redirect=http://www.streamingme dia.com/PDF/SMWhitepaper.aspx?IssueID=1943 [Accessed 29 December 2011]  Subramanian, K. (2008), “Monetizing Mobile Applications: Turning Mobile Audiences into Revenue", Mashable (Online) Available at: http://mashable.com/2008/10/22/monetizing- mobile-apps/ [Accessed 22 October 2011]  Tuzman, K. (2009), “HOW TO: Monetize Your Site With Video", Mashable (Online) Available at: http://mashable.com/2009/02/11/how-to-monetize-your-site-with-video/ [Accessed 24 October 2011]  Wagstaff, K. (2011), “DVR, Mobile Video Usage Up More than 30% over Last Year", Time Magazine (Online) Available at: http://techland.time.com/2011/10/21/dvr-mobile-video-usage- up-more-than-30-over-last-year [Accessed 22 October 2011]  Warren, Ch. (2011), “5 Reasons You’re Consuming More Mobile Content", Mashable (Online) Available at: http://mashable.com/2011/04/28/mobile-content/ [Accessed 22 October 2011]  Wildstrom, S (2008), "More Streaming, Less Screaming.", BusinessWeek; 5/12/2008, Issue 4083, p073-074 - 32 -
    • Management Research Project Individual Assignment - 09000016 Supervisor: Daniela BartosovaModule – LT3P18N Leveraging Mobile Video London Metropolitan University  Wray, R. (2009), “Virgin Media to launch mobile video service", The Guardian (Online) Available at: http://www.guardian.co.uk/business/2009/aug/06/virgin-media-looks-at-mobile- video-on-demand?INTCMP=SRCH [Accessed 24 October 2011]MARKET RESEARCH REPORTS  Cisco (2011), “Cisco Visual Networking Index: Global Mobile Data Traffic Forecast Update, 2010–2015", Whitepaper (Online) Available at: http://www.cisco.com/en/US/solutions/collateral/ns341/ns525/ns537/ns705/ns827/white_paper _c11-520862.html [Accessed 22 October 2011]  Mintel (2011a), “Mobile Phone Apps - UK - June 2011" (Online) Available at: http://0- academic.mintel.com.emu.londonmet.ac.uk/sinatra/oxygen_academic/search_results/show&& type=RCItem&sort=relevant&access=accessible&archive=hide&source=non_snapshot&list= search_results/display/id=545169/display/id=583078?select_section=583079 [Accessed 26 October 2011]  Mintel (2011b), “Media Content On the Go - UK - September 2011" (Online) Available at: http://0- academic.mintel.com.emu.londonmet.ac.uk/sinatra/oxygen_academic/search_results/show&& type=RCItem&sort=relevant&access=accessible&archive=hide&source=non_snapshot&list=s earch_results/display/id=588709/display/id=595052 [Accessed 26 October 2011]  Mintel (2011c), “Music and Video Purchasing - UK - August 2011" (Online) Available at: http://0- academic.mintel.com.emu.londonmet.ac.uk/sinatra/oxygen_academic/search_results/show&& type=RCItem&sort=relevant&access=accessible&archive=hide&source=non_snapshot&list=s earch_results/display/id=545256/display/id=591260 [Accessed 26 October 2011]  Mintel (2010), “Paid-For vs Free - Consumer Attitudes to Pricing in Media and Music - UK - April 2010" (Online) Available at: http://0- academic.mintel.com.emu.londonmet.ac.uk/sinatra/oxygen_academic/search_results/show&/d isplay/id=480755/display/id=523880 [Accessed 26 October 2011]  Mintel (2009b), “Mobile TV and Video Content - UK - April 2009" (Online) Available at: http://0- academic.mintel.com.emu.londonmet.ac.uk/sinatra/oxygen_academic/search_results/show&& type=RCItem&sort=relevant&access=accessible&archive=hide&source=non_snapshot&list= search_results/display/id=393921 [Accessed 26 October 2011]  Ofcom (2011), “The Communications Market 2011 (August)" (Online) Available at: http://stakeholders.ofcom.org.uk/market-data-research/market-data/communications-market- reports/cmr11/ [Accessed 24 October 2011]  Visiongain (2011), “MOBILE VIDEO & TV ON SMARTPHONES: MARKET DRIVERS AND CHALLENGES REPORT 2011-2016" (Online) Available at: http://www.visiongain.com/Report/698/Mobile-Video-TV-on-Smartphones-Market-Drivers-and- Challenges-Report-2011-2016 [Accessed 22 October 2011] - 33 -
    • Management Research Project Individual Assignment - 09000016 Supervisor: Daniela BartosovaModule – LT3P18N Leveraging Mobile Video London Metropolitan UniversityOTHER ONLINE SOURCES:  Belic, B. (2011), “In-Stat: Mobile video consumption to surpass 693 billion minutes by 2015", IntoMobile (Online) Available at: http://www.intomobile.com/2011/07/21/instat-mobile- video-consumption-surpass-693-billion-minutes-2015/ [Accessed 22 October 2011]  Bernstrom, A. (2011), “4 ways 4G will impact the way you communicate", MobileBeat (Online) Available at: http://venturebeat.com/2011/06/27/4-ways-4g-will-impact-the-way-you- communicate/ [Accessed 22 October 2011]  Brightcove (2011), “VIDEO STRATEGY FRAMEWORK", Whitepaper (Online) Available at: http://files.brightcove.com/brightcove-whitepaper-vsf.pdf [Accessed 19 December 2011]  Fraim, D. (2010), “QuickPlay Media Consumption Analysis Shows Increasing Consumer Engagement with Premium Mobile Video Services in Q4 2009”, QuickPlay Media (Online) Available at: http://www.quickplay.com/2010/02/quickplay-media-consumption-analysis- shows-increasing-consumer-engagement-with-premium-mobile-video-services-in-q4-2009/ [Accessed 22 October 2011]  Hendrick, D. (2010), “Can Fox make mobile video work?”, SNL Kagan Media & Communications Report (Online) Available at: http://0- www.lexisnexis.com.emu.londonmet.ac.uk/uk/nexis/results/docview/docview.do?docLinkInd=tr ue&risb=21_T13061734000&format=GNBFI&sort=RELEVANCE&startDocNo=526&resultsUrl Key=29_T13061734004&cisb=22_T13061734003&treeMax=true&treeWidth=0&csi=360279& docNo=531 [Accessed on 23.10.11]  Holland, N (2006), “Rescuing 3G with Mobile TV: Value Chain, Business Models and Monteizing 3G", Pyramid Research (Online) Available at: http://www.pyramidresearch.com/store/rp_mobiletv.htm [Accessed 19 December 2011]  Klepp, JT. (2010), “Video on mobile still an analyst favorite" (Online) Available at: http://www.jtklepp.com/2010/10/14/video-on-mobile-still-an-analyst-favorite/ [Accessed 19 December 2011]  Klepp, JT. (2008), “3G and Mobile TV: A Smash Hit?" (Online) Available at: http://www.jtklepp.com/2008/08/28/3g-and-mobile-tv-a-smash-hit/ [Accessed 19 December 2011]  Klepp, JT. (2008), “Mobile TV or Mobile Video?" (Online) Available at: http://www.jtklepp.com/2008/07/06/mobile-tv-or-mobile-video/ [Accessed 19 December 2011]  Klepp, JT. (2008), “Mobile Content Revenue Models – Still an Issue" (Online) Available at: http://www.jtklepp.com/2008/10/17/mobile-content-revenue-models-still-an-issue/ [Accessed 19 December 2011]  Perez, S. (2010), “More Adults than Teens Consume Mobile Video", ReadWriteWeb (Online) Available at: http://www.readwriteweb.com/archives/more_adults_than_teens_consume_mobile_video.php [Accessed 22 October 2011]  Peterson, A. (2011), “US Survey Finds Significant Interest in Social Media Integration with Mobile Video Services", Quickplay Media (Online) Available at: - 34 -
    • Management Research Project Individual Assignment - 09000016 Supervisor: Daniela BartosovaModule – LT3P18N Leveraging Mobile Video London Metropolitan University http://www.quickplay.com/2011/03/us-survey-finds-significant-interest-in-social-media- integration-with-mobile-video-services/ [Accessed 22 October 2011]  Roettgers, J. (2011), “Is it time for a mobile TV comeback?”, Giaom (Online) Available at: http://gigaom.com/video/mobile-tv-comeback/ [Accessed 22 October 2011]  Saxena, V. and Stevens, G. (2011), “Joining the Over-The-Top Revolution", Hewlett- Packard Development Company (Online) Available at: http://www.hpintelco.net/pdf/solutions/WP_Joining_the_Over_The_Top_revolution.pdf [Accessed 29 December 2011]  Smith, C. (2011), “Nielsen Study Of Teens Media Use: All About Mobile", Hypebot (Online) Available at: http://www.hypebot.com/hypebot/2011/06/nielsen-on-teens-media-use-theyre- mobile.html?utm_source=feedblitz&utm_medium=FeedBlitzEmail&utm_campaign=0&utm_cont ent=395530 [Accessed 22 October 2011]  Takahasi, D. (2011), “Klip launches an easy way to watch videos on smartphones", MobileBeat (Online) Available at: http://venturebeat.com/2011/09/20/klip-launches-an-easy- way-to-watch-videso-on-smartphones/ [Accessed 26 October 2011]  Thwapr Inc. (2011), “Thwapr Offers White Label Program to Help Brands Monetize Mobile Video", MarketWire (Online) Available at: http://www.marketwire.com/press- release/thwapr-offers-white-label-program-to-help-brands-monetize-mobile-video- 1418981.htm [Accessed 24 October 2011]  Wearmouth, K. (2011), “Speaker Interview with Kelly Wearmouth", The Mobile Video Industry Summit 2011 (Online) Available at: http://mobile-videosummit.com/conference/interview-with- kelly-wearmouth/ [Accessed 22 October 2011] - 35 -
    • Management Research Project Individual Assignment - 09000016 Supervisor: Daniela BartosovaModule – LT3P18N Leveraging Mobile Video London Metropolitan University8. BIBLIOGRAPHYBOOKS:  Eylert, B. (2005), "The mobile multimedia business: requirements and solutions", John Wiley & Sons: London, UK  Paavilainen, J. (2002), “Mobile business strategies : understanding the technologies and opportunities”, Wireless Press: London, UK  Sadeh, N. (2002), “M-commerce : technologies, services, and business models”, Wiley Computer: New York, USA  Steinbock, D. (2005), “The mobile revolution : the making of mobile services worldwide”, Kogan Page: London, UKTHESIS/DISSERTATIONS:  Van Schalkwyk, L. (2007), “The relationship between content providers and users in mobile television", Master Thesis (Online) Available at: http://dspace.nwu.ac.za/bitstream/10394/1267/1/vanschalkwyk_liesldana.pdf [Accessed 26 October 2011]JOURNALS, TRADE PRESS & NEWSPAPERS:  Antonoff, M (2007), "Motion Pictures.", Scientific American; May2007, Vol. 296 Issue 5, p24- 25  Associated Press (2010), “Study: Asians rely on mobile video", Hollywood Reporter (Online) Available at: http://www.hollywoodreporter.com/news/study-asians-rely-mobile-video- 26366 [Accessed 22 October 2011]  Clark, D (2011), “Startup Veteran Takes On Mobile Video with Klip", Wall Street Journal (Online) Available at: http://blogs.wsj.com/digits/2011/09/20/startup-veteran-takes-on-mobile- video-with-klip/?KEYWORDS=%22mobile+video%22 [Accessed 23 October 2011]  Farey-Jones, D. (2009), “Mobile video and TV revenues to double in four years”, Brand Republic (Online) Available at: http://www.brandrepublic.com/news/974553/Mobile-video-TV- revenues-double-four-years [Accessed 23 October 2011]  Gahran, A. (2010), “Mobile video getting popular, but TV still rules", CNN (Online) Available at: http://articles.cnn.com/2010-12-14/tech/mobile.video.tv.gahran_1_mobile-video- mobile-devices-mobile-games?_s=PM:TECH [Accessed 22 October 2011]  KIM, R (2011), “Skyfire Puts Mobile Video on a Bandwidth Diet for Carriers", New York Times (Online) Available at: http://www.nytimes.com/external/gigaom/2011/10/11/11gigaom- skyfire-puts-mobile-video-on-a-bandwidth-diet-for- 30978.html?scp=1&sq=%22mobile%20video%22&st=cse [Accessed 22 October 2011] - 36 -
    • Management Research Project Individual Assignment - 09000016 Supervisor: Daniela BartosovaModule – LT3P18N Leveraging Mobile Video London Metropolitan University  OHara, K., Mitchell, A.S., Vorbau, A. (2007), "Consuming video on mobile devices", Proceedings of the ACM SIGCHI Conference on Human Factors in Computing Systems, New York, NY, USA, pp.857-66.  Rong Chen, Zang Li, Chao-Hsien Chu, (2011) "Toward service innovation: An investigation of the business potential of mobile video services in China", Journal of  Technology Management in China, Vol. 6 Iss: 3, pp.216 - 231  Rothman, W. (2005), "TV to Go.", Money; Nov2005, Vol. 34 Issue 11, p190-192  Schelle , A. (2011), “Turning Mobile Dreams Into Reality", Broadcasting & Cable (Online) Available at: http://sip-trunking.tmcnet.com/news/2011/07/16/5640518.htm [Accessed 22 October 2011]  Shields, R. (2010), “European mobile video viewing up 66%", New Media Age (Online) Available at: http://www.nma.co.uk/news/european-mobile-video-viewing-up- 66/3018791.article [Accessed 22 October 2011]  Siglin, T. (2008), “BBC: Current Mobile Video Business Models Not Sustainable", Streaming Media (Online) Available at: http://www.streamingmedia.com/Articles/Editorial/Featured-Articles/BBC-Current-Mobile- Video-Business-Models-Not-Sustainable-65062.aspx [Accessed 26 October 2011]  Xin Xu, B., Wai-Kit Ma, W. and See-To, E. (2006), “Will mobile video become the killer application for 3G? - An empirical model for media convergence" (Online) Available at: http://eprints.lancs.ac.uk/48863/1/Document.pdf [Accessed 26 October 2011]MARKET RESEARCH REPORTS  Mintel (2009a), “IPhone Generation - UK - November 2009" (Online) Available at: http://0- academic.mintel.com.emu.londonmet.ac.uk/sinatra/oxygen_academic/search_results/show&& type=RCItem&sort=relevant&access=accessible&archive=hide&source=non_snapshot&list=s earch_results/display/id=395911/display/id=496147 [Accessed 26 October 2011]  Ofcom (2010), “The Communications Market Report: International" (Online) Available at: http://stakeholders.ofcom.org.uk/market-data-research/market-data/communications-market- reports/cmr10/international/ [Accessed 24 October 2011]  Smith, A. (2011), “35% of American adults own a smartphone", Pew Research Center (Online) Available at: http://infopeople.org/sites/all/files/webinar/2011/10-12- 2011/Pew_Internet_Smart_Phone_Adoption_and_Usage.pdf [Accessed 22 October 2011]Other Online Sources:  Cook, G. (2011), “The Rise Of The Smartphone", Tamar (Online) Available at: http://blog.tamar.com/2011/10/the-rise-of-the-smartphone/ [Accessed 22 October 2011]  Hayward, M. (2010), “Leveraging Mobile Videos Marketing Promise", Sales and Marketing Management (Online) Available at: http://www.salesandmarketing.com/article/leveraging- mobile-videos-marketing-promise [Accessed 22 October 2011] - 37 -
    • Management Research Project Individual Assignment - 09000016 Supervisor: Daniela BartosovaModule – LT3P18N Leveraging Mobile Video London Metropolitan University  KIT DIGITAL INC. (2010), “Survey Reveals Over 75% Of U.S. Businesses Are Actively Pursuing An IPad Video Strategy” (Online) Available at: http://0- www.lexisnexis.com.emu.londonmet.ac.uk/uk/nexis/results/docview/docview.do?docLinkInd=tr ue&risb=21_T13061734000&format=GNBFI&sort=RELEVANCE&startDocNo=501&resultsUrl Key=29_T13061734004&cisb=22_T13061734003&treeMax=true&treeWidth=0&csi=312853& docNo=503 [Accessed on 23.10.11]  Klepp, JT. (2011), “TV meet my mobile. Mobile meet my TV (or “How to make watching Tour de France fun”)" (Online) Available at: http://www.jtklepp.com/2011/07/09/tv-meet-my- mobile-mobile-meet-my-tv-or-how-to-make-watching-tour-de-france-fun/ [Accessed 19 December 2011]  Klepp, JT. (2009), “Behind the numbers: Will mobile data really explode?" (Online) Available at: http://www.jtklepp.com/2009/10/06/behind-the-numbers-will-mobile-data-really- explode/ [Accessed 19 December 2011]  Klepp, JT. (2009), “Google and Android have a chance, but “getting it right” is hard" (Online) Available at: http://www.jtklepp.com/2009/07/09/google-and-android-have-a-chance- but-getting-it-right-is-hard/?utm_source=BlogGlue_network&utm_medium=BlogGlue_Plugin [Accessed 19 December 2011]  Jarich , P. (2011), “Jarich: 4G marketing, LTE roaming and incenting developers - just another day (or so) in the mobile ecosystem", Fierce Wireless (Online) Available at: http://www.fiercewireless.com/story/jarich-4g-marketing-lte-roaming-and-incenting-developers- just-another-day-o/2011-10-04 [Accessed 22 October 2011]  Lasar, M. (2011), “World mobile data traffic to explode by factor of 26 by 2015", Ars Technica (Online) Available at: http://arstechnica.com/tech-policy/news/2011/03/world- mobile-data-traffic-to-explode-by-factor-of-26-by-2015.ars [Accessed 24 October 2011]  Limelight Networks (2011), “How to Master the Art of Content Marketing" (Online) Available at: http://www.slideshare.net/NunoCoelho2/how-to-master-the-art-of-content- marketing-10460324 [Accessed 19 December 2011]  Lunden, I. (2011), “Mobile Video In Focus For Users And Investors: Animoto Picks Up $25 Million ", Moco News (Online) Available at: http://moconews.net/article/419-mobile-video- in-focus-for-users-and-investors-animoto-picks-up-25-milli/ [Accessed 24 October 2011]  Ofcom (2011), “Facts & Figures", Broadcast Engeneering (Online) Available at: http://media.ofcom.org.uk/facts/ [Accessed 22 October 2011]  OHalloran, J. (2010), “YouTube and not pay-TV to benefit from 4G rollout”, Inside Satellite TV (Online) Available at: http://www.sat-television.com/showthread.php/153008- YouTube-and-not-pay-TV-to-benefit-from-4G- rollout?s=d33a07e80596bc3ecdca3602ec678612 [Accessed 22 October 2011]  OMVC (2009), “BBC: Current Mobile Video Business Models Not Sustainable", Open Mobile Video Coalition (Online) Available at: http://www.openmobilevideo.com/_assets/docs/reports/MobileDTVLiteratureReview- External.pdf [Accessed 26 October 2011] - 38 -
    • Management Research Project Individual Assignment - 09000016 Supervisor: Daniela BartosovaModule – LT3P18N Leveraging Mobile Video London Metropolitan University  OSullivan, C. (2010), “Digital rights will be mobile TVs biggest challenge", GoMo News (Online) Available at: http://www.gomonews.com/digital-rights-will-be-mobile-tvs-biggest- challenge/ [Accessed 22 October 2011]  Ovum (2008), “The Business case to assuring the customers mobile experience", White Paper (Online) Available at: http://www.gomez.com/wp-content/downloads/Ovum-business- case-assuring-mobile-experience-010311.pdf [Accessed 22 October 2011]  Perez, S. (2010), “Open Mobile Summit: The Future of Mobile Video”, ReadWriteMobile (Online) Available at: http://www.readwriteweb.com/mobile/2010/11/open-mobile-summit-the- future-of-mobile-video.php [Accessed on 23.10.11]  Rappa, M. (2010), "Business Models on the Web”, Digital Enterprise [online] Available at: http://digitalenterprise.org/models/models.html [Accessed 12 May 2011]  Robertson, M and Pierce (2011), “Social Video Marketing - Strategies for Great Social Video", RealSEO Webinar (Online) Available at: http://www.slideshare.net/ReelSEO/social- video-marketing-strategies-for-great-social-video [Accessed 19 December 2011]  Stableford, D. (2011), “Mobile video getting popular, but TV still rules", The Wrap (Online) Available at: http://www.thewrap.com/media/column-post/mobile-video-users-usage- exploding-us-25986 [Accessed 24 October 2011]  Thomson Reuters (2011), “29 million in Vietnam to enjoy high-quality video on their mobiles” (Online) Available at: http://www.reuters.com/article/2011/08/04/idUS112598+04- Aug-2011+HUG20110804 [Accessed 22 October 2011]DVD & Online Video Sources:  GoogleMobileAds (2011) "The Mobile Movement: Understanding Smartphone Consumers", Youtube Video [online] Available at: http://youtu.be/CjUcq_E4I-s [Accessed 24 October 2011]  Leonhard, G. (2008) "Futurist Gerd Leonhard Talk: Open is King: The Future of Media", Google Video/Experience Economy Event in Amsterdam [online] Available at: http://video.google.com/videoplay?docid=-8394408463540033421# [Accessed 17 February 2011] - 39 -
    • Management Research Project Individual Assignment - 09000016 Supervisor: Daniela BartosovaModule – LT3P18N Leveraging Mobile Video London Metropolitan University9. APPENDICES 9.1 CISCO MOBILE DATA TRAFFIC FORECASTS BY 2015 40 9.2 US MOBILE VIDEO REVENUES BY SEGMENT (2008 – 2014) 419.1 CISCO MOBILE DATA TRAFFIC FORECASTS BY 2015 (Cisco Forecasts 6.3 million Terabytes per Month of Mobile Data Traffic by 2015) Source: Cisco, 2011 (Mobile Video will generate 66% of Mobile Data Traffic by 2015) Source: Cisco, 2011 - 40 -
    • Management Research Project Individual Assignment - 09000016 Supervisor: Daniela BartosovaModule – LT3P18N Leveraging Mobile Video London Metropolitan University9.2 US MOBILE VIDEO REVENUES BY SEGMENT (2008 – 2014) Source: Ankeny/eMarketer, 2010 - 41 -