TV Stations Start Broadcasting to Mobile Gadgets---In the U.S.

Why, you might say, do a post about a development in the United States on this blog which deals with Korea's Information Society? Simply to make the point that the U.S. and other countries are following Korea's lead, four years later. This also happened earlier with social networking, as the founding of Facebook and MySpace in the U.S. followed Korea's Cyworld by about four years. Digital multimedia broadcasting was introduced here in 2005 and proved to be a big hit with consumers. So much so that during certain dayparts, more people in Korea watch television on mobile devices than on conventional television sets. Those interested in developments in the U.S. can read the full article in the New York Times.

Mobile, Immersive, Interactive Entertainment

I was catching up on Eli Noam's periodic contributions to the Financial Times and found his excellent article on the future of mobile entertainment in a July issue of the paper.  He points out that, at certain times of the day, there are already more Koreans watching television (DMB) on mobile handsets than on conventional television sets.  However, the heart of his argument is that the experience of mobile television is soon likely to be transformed into an immersive, interactive experience that equals or exceeds the quality of watching television on a large screen.  This will come about through new display technology involving eyeglasses or "heads up" displays, and other technological improvements.
South Korea's already strong position in multiplayer online games is likely something that can be translated into successful business in mobile multiplayer games.  Also, it is worth noting that there is a serious aspect to games.  If you don't think so, just check out www.seriosity.com

Digital Multimedia Broadcasting (DMB) Developments of Late

My wife and I just recently traded in our Kia Sportage and purchased a new Hyundai Tucson.  In the process, we chose several options, including the built-in navigation system.  The navigation options on the system are quite nice and highly programmable.   In addition, the system includes a DVD player, FM, and DMB (Digital Multimedia Broadcasting), among other things.  One day, a couple of weekends ago, I was checking out the system and when I pressed the DMB button on the left of the console and found myself watching a Korean drama via terrestrial DMB, it occurred to me what a convenient and natural option this was.  I imagined being caught in traffic, arriving at an appointment or simply being out in the mountains on a Fall afternoon, when it might be nice to watch a bit of television.  I also thought of the fact that most countries in the world don't yet enjoy the convenience of free DMB television, so this is an update on two earlier posts (the first here and the second here.)   Several things are happening in the DMB industry.
First, according to reports in Korea's electronics newspaper (전자신문), several of the terrestrial DMB broadcasting companies are starting to specialize, in an effort to attract a more targeted audience, and advertisers.  For example, U1 is specializing in online and offline sports, and Korea DMB was changing its name and plans a focus on the economy.
Second, also according to the Electronics Newspaper, three big mobile carriers in Korea are experimenting with two-way data broadcasting services using DMB.  Using such services, users can do search, shopping or communications while watching DMB programming.   This is similar to the sort of services that are incorporated in the IPTV offerings for which more than one million Koreans have subscribed to date.
Second, the export market for Korea's DMB technology, although in its infance, is still alive.  The technology is being used in such nations as Germany, China, Ghana, and France.
Like wireless broadband (WiBro), Korea's DMB technology faces competitors in the global market.  However, there may well be an important market niche for Korean technology.  This is a sector to watch closely.

Mobile TV Penetration in Korea Reaches 22 million

The Korea Times reports that the number of Koreans subscribing to mobile TV services, both free and paid, has reached 22 million, or about 45 percent of the country's population.  TU Media, a unit of SK Telecom and the country's sole provider of pay satellite DMB services, reports that it now has 2 million customers, up from 1.3 million at this time last year.   The country's three mobile carriers, SK Telecom, KT and LG report that they have sole 20 million handsets equipped to receive free terrestrial DMB (digital multimedia broadcasting) telecasts.  Thusfar, South Korea's experience with DMB has proven several things in the marketplace:

• People will watch television on mobile devices.  The long commutes faced by many Koreans who live in urban areas no doubt contributes to this viewing.
• Although some people will subscribe to mobile television, in large numbers they prefer free, advertiser-supported services.
• Korea's terrestrial DMB operators are still not bringing in enough advertising revenue to support the service on a sustained basis

With such large numbers of viewers, it seems that mobile television is here to stay in the Korean market.  As we move into the era of mobile internet, television will also be part of that mix (e.g. CNN, BBC or Youtube video).

Revenue Problems for Korea's DMB Industry

Despite healthy levels of viewership, the latest reports suggest that advertising levels on South Korea's Digital Multimedia Broadcasting services are not providing enough income to sustain the business.  As a result, according to The Korea Times , the nation's six terrestrial DMB operators are considering halting their coverage on subway lines in a desperate move to shed costs and keep the business afloat.  Less than three years ago they had jointly invested to complete transmission networks in subway lines, allowing commuters to watch World Cup football games.
The number of viewers has not been a problem. About one-third of all Koreans have access to mobile television, dubbed digital multimedia broadcasting (DMB) here, with free terrestrial DMB services garnering around 16 million users and another 1.8 million subscribed to satellite-based DMB, a pay-T.V. service provided by TU Media.
Instead, finding reliable revenue streams for the DMB services has been the major challenge.  Since terrestrial DMB services are free for users with television-enabled terminals, advertising is the only source of revenue for the operators.