Why premium mobile TV needs free-to-air

Premium subscription services such as Qualcomm’s (NASDAQ:QCOM) MediaFLO technology — sold through AT&T (NYSE:T), Verizon Wireless (NYSE:VZ, NYSE:VOD) and, more recently, directly to consumers — are starting to gain momentum, helped by the eventual passing of the digital transition. At the same time, the Open Mobile Video Coalition is beginning to bring its promised mobile DTV products to market this year. At spring’s NAB show, MobiTV, PBS, Sinclair Broadcast Group and Sprint also jointly demoed a prototype of a service that would combine on-demand video subscription service with free-to-air programming through an LG USB dongle containing both a WiMAX chip and a mobile digital TV receiver.

The path is beginning to be paved, as players in the mobile TV ecosystem continue to come together. Broadcasters realize they need mobile operators to offer on-demand content to offset advertising declines, and operators are realizing they need a way to get their customers comfortable with moving from a free model to a paid service. A hybrid premium and free-to-air mobile TV service is one answer for both. Most importantly, when it comes down to a choice between partnering or competing, both services stand a better chance together than they do alone.

E-mail me at sreedy@telephonyonline.com.