@Mobile Content World: Finding The Money For Mobile TV
Clare Tavernier, SVP Interactive for Fremantle Media, said the critical issue for mobile TV is funding. Unlike the music industry, where record companies are used to funding artists until they make the money back through album sales, TV producers don’t take that kind of risk. They put the ideas to broadcasters who then give them the money for the production. “Some broadcasters and mobile operators are laying down some money but this has been going on for two years. Nobody knows where to find the money.”
— Phil Lawrie, VP of Turner Broadcasting:”If, as a broadcaster, you’re serious about new media and mobile, you have to take risks. You have to have part of your business dedicated to trying things out and doing something new – and not reliant on hitting targets.
— Selma Turajlic, head of interactive media at Celador, overheard a conversation at the airport in which someone complained that they already pay their UK TV licence, they pay for Sky, for broadband and their mobile bill – so why would they pay extra for mobile TV? It seems that advertising is the only way forward: “We don’t know what consumers tolerance to ads is, and we really need to understand that.” She said there will be willingness to accept ads once people realise it will mean a cheaper or free TV service. Tavernier said advertising is already viable and that we’ll start to see more creative forms of sponsorship and product placement.
— Mobile is like other TV business models in that there is a mix of advertising and fees, but where that balance settles is still in flux, said Lawrie. He estimates it will be another 12-18 months before there’s enough of a critical mass of viewers to make advertising viable.
This article originally appeared in MediaGuardian.
Comments have been disabled for this post