Vodafone looks to Sky for mobile TV

07-06-2006

by Maxim Kelly

To the strains of Video Killed the Radio Star, Sky and Vodafone announced on Wednesday that they have teamed up to launch mobile TV in Ireland.

The launch song, by Buggles, was a one-hit wonder in 1979 but executives at the two companies are confident that Ireland's first commercial TV service streamed live onto mobile phones will be a lasting success.

"This is a hugely significant development for both the mobile and television industries," said Vodafone Ireland director Celine Fitzgerald, speaking at the event.

Eighteen mobile channels including Sky News; Sky Sports News; Cartoon Network; Discovery Factual; CNN; At the Races; National Geographic; Biography; Sky One; Sky Movies Mobile; Bravo; Discovery Lifestyle; Living; Kiss; The Box; Kerrang; Eurosport and Uefa Champions League (review) will be available in areas of 3G coverage. Some channels will broadcast live, and some will show dedicated made-for-mobile blocks of programming.

Sarah Chapman, content services manager with Vodafone, told ENN that 70 percent of Vodafone's network was 3G enabled, and she expects that figure to rise to 85 percent by 2007. "We want customers to experience mobile television. Come in to our stores and have a look. Show it to your friends -- it's free," she said.

The service, dubbed Sky Mobile TV, will be broadcast free to view on 15 June until 31 August. From September customers will be charged EUR1.99 per week per package of channels, or EUR4.99 per week for all channels, although a Vodafone spokeswoman told ENN that any customer who signs up after September will receive a week-long trial for free.

In Britain, Vodafone UK launched its mobile TV last autumn. Sky deputy managing director Mark Deering told ENN the firms were "very surprised by the level of take-up and level of revenue generated. In the past two months 100,000 channel packages have been sold to Vodafone customers, and Sky channels account for 40 percent of all viewing."

It is believed that almost 100,000 Vodafone UK customers signed up for a single TV package, so it seems many are opting for just one package rather than all channels.

Unlike Vodafone Ireland subscribers, Vodafone UK customers are charged monthly. Vodafone said average monthly revenue per mobile TV user in the UK is around STG7.50. The decision to charge weekly in the Republic was based on the higher number of Pay-as-you-go customers in Ireland.

Demand for mobile TV services in the Irish market is expected to be high, according to Fitzgerlad, who said that over the past year Vodafone Ireland customers have downloaded 1.2 million videos and almost 500,000 music tracks.

Recent research from Portio Research claims that 50 percent of European mobile users are interested in watching mobile TV. The same 50 percent said they would be willing to pay, on average, EUR10 a month for unlimited mobile TV.