Streaming on the Go

"The second piece is a little more complex, that is the entertainment function," Alvelda continues. "The usage model seems to be, ‘I’ve got some time waiting for a flight or in a checkout line and I need to be entertained. I’m looking for something interesting or new.’" At the same time, this usage model is brand new and still being felt out, so it’s not clearly defined how else consumers may find ways to take advantage of being able to access rich media on the go

So far much of the video content being viewed on handhelds is simply repurposed TV shows that treat these smaller devices as remote viewing stations That’s not surprising, since it mimics the evolution of TV programming itself. "During the first couple of years what you really saw on TV was a filmed radio program. Then, suddenly, the medium evolved in its own right," says Steiner Svalesen, EVP and general manager of mobile media North America for the Mobile Media Company. "I think we’re at that point right now [with mobile content]. What we’ve seen so far has been typically a spin-off of what you see on TV and film. With the introduction of mobisodes, the medium is being explored in its own right." Mobisodes are very short video clips—typically one to two minutes long—that either summarize longer-form video content like the TV show 24 or create their own storyline in and of themselves.

"This is clearly a brand new medium," says Bennett. "It’s not television; it’s not a desktop environment. We have to learn from scratch. The key now is to put as much content out there as possible. Once someone finds the right content, then we can duplicate the formatting."

And this formatting is already starting to take shape at a pace much faster than anything previously seen for previous communications technologies. "You already have a special format being created for the mobile and handheld world," says Snyder. "From the way things are shot, editing, and produced, even to the way it’s scripted, there’s a whole content market being created just for this specific device. It is having a dramatic effect on the community at large, which is unique from a technology standpoint. In the traditional Internet we haven’t seen as much of a rush for creating content for a specific form factor as we have for the mobile space."

Streaming to mobile devices is also being used to extend successful brands that have been established on TV. "Last year we developed a wireless client for the show Queer Eye for the Straight Guy," says Svalesen. The client allowed viewers to access additional information about the show’s hosts and get other inside info while the show was on-air. "Now you can see how a wireless streaming client can be the starting point for generating a community," Svalesen continues. "At the end of the day, a lot of the media properties will, if anything, be community managers, managing communities through a number of channels. TV is one, mobile is another, and the Internet is yet another."

This crossover between channels is becoming increasingly common, but it will only go as far as the wireless carriers allow it to. "Typically you see streaming services coming through branded carrier portals," says Svalesen. Some carriers are opening up third-party portals, but for the most part, wireless networks are still closed systems here in the US, unlike their European counterparts and arguably to the detriment of the industry. "In Norway, once the value chain opened up, the market grew ten times in three years," says Svalesen. "I’m not saying the same thing will happen in the U.S., but if you really want to monetize non-voice services you need to allow others to share in the risks and the cost. Over time, I think the large media companies will certainly be interested in controlling access to their customers and not supply that as a sub-brand or sub-offering on a carrier portal."