Content Providers See Phones As '3rd Screen'

Video content is popping up left and right on various mobile devices. Just last week, Microsoft launched MSN Videos, which in-cludes content from programmers such as MSNBC.com and Fox Sports, primarily for its Portable Media Center devices. Also, hardware manufacturer Viseon, which makes Voice Over Internet Protocol phones, an-nounced plans to distribute TV content to digital telephone users.The interesting thing about these announcements is that companies are rushing to offer content for mobile devices that very few people have. Until recently, mobile content has been moving toward a phone-centric world, with aggregators like Verizon's VCast, MobiTV and SmartVideo all gearing up for an explosion in sales of super-sophisticated 3G phones, which offer crystal-clear TV images.That is still the direction most observers expect the business to head, as cell phones become more pervasive. Last week, mobile media company Enpocket released a survey indicating that 65 percent of the U.S. population has access to a mobile phone, a larger percentage than those with home Internet access.While video content on handheld devices is still in an experimental stage, the bet most providers and content aggregators are making is that video is going to drive mobile content usage. "Carriers think that video is going to be the killer application for users to upgrade," said Noah Elkin, senior analyst at eMarketer.But which device will consumers use to view this mobile video content? It's still far too early to tell, as the options—PDAs, laptops, BlackBerries, iPods, PlayStation Portables and Microsoft's PMCs—continue to multiply. "The industry, in the next couple of years, is anticipating broadband connectivity everywhere," said Elkin. "A lot remains to be seen."For the immediate future, content providers, aggregators and hardware manufacturers will place content everywhere, until users tell them exactly where they want it. That might explain why Microsoft is pushing content to not only its PMCs but other platforms. And, in the current media environment—where phone companies, cable companies, electronics manufacturers and even traditional utilities are able to deliver content to consumers—there is likely to be much trial and error with mobile content distribution. "Companies that connect are also media companies all of a sudden," said Joel Lunenfeld, vp of media services at Moxie Interactive. "Along with connectivity comes content."In the end, most believe the phone will win out as that elusive "third screen," for consumers. "People want to carry one device," said Lunenfeld, who works with Verizon Wireless. "The phone is always going to win. That's what you carry with you.""Convergence is where we are headed," agreed eMarketer's Elkin. "I don't think the future is that we are all going to be wearing cargo pants with pockets for all of our devices."Media buyers welcome the newcomers. Stacy Lynn Koerner, evp, director of global research integration at Interpublic's Initiative said, "We've got more and more clients who are demanding that we investigate emerging media. ... We know that when a consumer is very engaged in content that they will extend that experience to multiple touch points, and advertising then resonates at a much higher rate. So content—it's one new touch point we can exploit in that experience." But she cautioned that advertisers "have to think very carefully about this. It's not an opportunity to dump a commercial on these consumers. They are paying for the service."

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Content Providers See Phones As '3rd Screen'

Mike Shields

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