The Catalyst Code

Mobile television hasn’t found a profitable business model just yet, mocoNews.net reports. The providers aren’t making much money even in Korea and Japan, where there are a lot of subscribers. Subscription-based services can’t generate enough revenue.

I agree with the article that we won’t ignite a catalyst reaction for mobile television until subscribers get most content for free and the providers are getting paid through selling advertising inventory. To get the mobile television market humming three things are going to be required:

1. The further penetration of mobile handsets like the iPhone that are good for watching video (of course, a fast data connection is also required).
2. The creation of good advertising platforms for mobile telephones that can deliver ads that make sense for the mobile screen.
3. The development of mobile commerce which will increase the demand for mobile advertising (so people can click and buy based on a mobile ad).

The problem with mobile television is that it is a bit too early. Without mobile commerce there isn’t enough demand for mobile advertising, and without that demand there isn’t enough revenue to support the widespread delivery of mobile content. And in the US, while the iPhone is great for viewing content, it’s attached to a slow network. I believe mobile television will have a very rosy future—but not until the mobile ecosystem flourishes much more than it has to date.