With more consumers watching mobile television on their tablets, the devices are poised to make a splash in TV consumption by 2014, according to a new report from Juniper Research.
In Juniper’s “Mobile TV: Applications, Devices and Opportunities 2012-2016” report, the research company looked at how multiple screens are influencing both stand-alone mobile TV services and traditional pay-TV services. The study also looked at the new advertising model that marketers can use to tap into mobile TV.
“It is really a combination of Internet and traditional television,” said Charlotte Miller, research analyst at Juniper, Hampshire, Britain.
“There has been evidence to show that consumers are responding positively to short advertising clips in mobile TV, so there is a massive opportunity to move into this space and improve on the current minimal advertising on mobile TV services,” she said.
TV trends
Juniper predicts that revenue from mobile TV will reach $8.9 billion by 2016 from advertising and end-user services on both streamed and broadcast mobile TV.
In particular, tablets will grow rapidly with an average of 58 percent per year until 2016.
Tablets made up two percent of total revenue mobile TV revenue in 2011, but is expected to make up ten percent of mobile TV revenue by 2016.
According to the report, 3G and Wi-Fi networks are two main catalysts that have helped propel mobile TV usage. As 4G coverage continues to roll out across areas including the United States and Asia, there will continue to be a switch to more mobile viewing.
Juniper defines mobile TV as content that is typically 30 minutes to an hour long, which shows how tablets are playing a role that is between a desktop and smartphone with longer content.
The study specifically looked at how mobile streaming has impacted broadcasters. Traditional broadcast TV has not been as much of a hit with consumers as streaming services.
Mobile TV users are looking for an extra bonus for watching via their tablets, pointing to the opportunities that marketers have on the platform.
Mobile viewers
The Juniper study points to the growing trend of tablets becoming a main way that consumers are watching TV.
Although smartphones are associated with shorter watching trends because of its small size, the tablet offers a high quality and resolution that lends itself to longer viewing times.
Mobile TV offers brands the ability to target consumers in new ways as consumers watch mobile TV more frequently are not tethered to a TV time schedule.
Although consumers want to watch TV on their devices, they are not willing to pay for content, which has led broadcasters and cable operators to roll out mobile initiatives such as free applications that are an extension of a user’s cable plan and pricing.
For example, Cablevision recently rolled out an iPhone and iPod touch app that lets users watch TV content while at home (see story).
“The use case for mobile TV is simple – people want access to watch content while away from their TVs,” Ms. Miller said.
“Tablets give the user a much bigger screen on which to view content, which is why we think that viewing times on tablets will be much higher than on smartphones,” she said.
“Tablets really are the screen of choice for watching mobile TV away from the television set.”
