Mobile video slow

"This year, for the first time, consumers will buy more video-enabled smartphones than TVs.
According to forecaster Research and Markets, sales of such devices will tip 300 million in 2008, which trounces the expected sales of tellies.And since there’s been a global financial meltdown since then (which should affect sales of plasmas far more than handsets) the difference could be even more marked.So will families be gathering around their LG Secrets to watch American Idol? No, of course they won’t. Don’t be stupid. But the point is that they could if they wanted. Why? Because handsets are big, screens are bright and, most important of all, data tariffs that make such high bandwidth activity tenable are breaking out all over the place. It’s these underlying factors that make the market watchers so excited about the future of mobile video.To pluck one of many forecasts out of the air, MultiMedia Intelligence says revenue from the sector will soar from $3.5 billion in 2008 to $15 billion by 2012.Every week seems to bring with it a dramatic new service launch. In the last few months, for example, Paramount and Motorola launched a service offering users access to full streamed or downloaded movies.At around the same time France-based Actimagine gave broadcasters and second tier operators an easy route to the mobile video market with Mobiclip, a storefront that lets users stream or download DVD-quality video via sideload, wi-fi or 3G. Weeks later Nokia confirmed that its flagship N96 would not only link to a made-for-purpose mobile TV channel, but also run BBC’s iPlayer video replay app.The latter is fascinating. BBC iPlayer has been wildly successful on the wired web, with more than 20 million programmes watched through the service in August alone. This has put huge pressure on broadband networks and caused some tension between the Beeb and ISPs.What kind of aggro could a mobile iPlayer be storing up? Jeremy Flynn, a former Vodafone exec now heading up the video-calling specialist D2See, has a view. He believes the limits on data allowances will ensure that the billshock issue doesn’t go away – and that this will inhibit the market.He says: “The fundamental hindrance to growth surrounds the actual and perceived cost of data. Most data plans allow at least 200Mb of data per month, and that’s about three hours of IP streamed data. That’s okay for video usage, but the cost of exceeding the bundle can be very high. On Vodafone UK’s prepaid tariff, you get charged £1 for up to 15Mb in a day, but the run-on rate is £2/Mb. So while watching 15 minutes of video would cost £1 in data charges, watching 30 minutes would cost £31 in data charges. Then there are contractual issues – T-Mobile reserves the right to block off-portal video streaming, and on Orange contracts it’s specifically excluded from the plan.”These issues are clearly still holding the market back. Matthew Feldman, CEO of Versaly, which runs the video aggregator Vmbc.tv, says: “Although I see the number of mobile video services and destinations increasing, our average number of views per service has been flat. As with any content, its all about marketing and promotion. Many video services have too much content and less than optimal navigation. Thus, only the featured or top video programming get all the views. We don’t see a big different between branded and unbranded, provided they are featured/promoted equally.”Most insiders would agree with Feldman. In the UK, Saffron Digital, which runs video on demand services for T-Mobile and Vodafone and is powering the Motorola/Paramount store, is witnessing steady growth – into the tens of thousands on the most popular clips. But it too recognises the need for promotion.CEO Shashi Fernando says: “I look at the made-for-mobile content available and I think some of it is genuinely fantastic. But it’s never been properly marketed to consumers. I still believe that the biggest demographic among mobile video watchers is people in the industry. They’re the ones watching. Still, by spreading the word this group can reach millions.”Fernando is not alone in believing that the Apple iPhone/App Store is transforming the mindset of everyone that uses it – and focusing the minds of everyone else. He adds: “Motorola, for example, is being brave and wise to take on Apple with its own store. It had to put a marker in the sand.”Damian Mulcock, CEO of video services specialist Mobix, agrees that Apple is raising the game. “The iPhone has gone a long way towards creating greater awareness amongst consumers of mobile media services. The industry needs to learn from this and make propositions that focus on value and not jargon,” he says. Still, not everyone is of the opinion that video is just for the future. At MTV, the current numbers are truly impressive, with the broadcaster reporting nine million streams in the US in August, up from five million in January.Greg Clayman, EVP of digital distribution and business development at MTV Networks, has no doubt that the simplicity of the operator offer is what lies behind this success.He says: “We don’t really have pay-per-download over here. You sign up for a simple subscription for VOD clips (as well as other mobile services) and pay one price for all you can view. That’s what VCast on Verizon and CV on AT&T are. And it’s working wonders for adoption.”MTV’s success has been achieved on the back of paid-for clips (albeit within a subscription) but the company is now set to explore ad-funded video too, with the US Air Force already signed up to provide pre-roll ads on made-for-mobile series The How To Show.Many believe this model will provide the bulk of video revenues to the business in years to come, even though there are still doubts about the level of demographic targeting possible and the quality of metrics returned to advertisers. These factors seem to have done for provider Rhythm New Media in the UK despite high profile deals with 3.Still, others are tackling the issue head on. Users who subscribe to services delivered by Velti's enhanced Mobile Marketing Platform (MMP) are asked to provide personal data the first time they sign up. This information, combined with carrier and network characteristics provided by Vantrix, is used to target consumers with more relevant material. Of course, there’s more to video on mobile than the downloading/ streaming of short clips. Take video ringtones, for example. The ringtone remains the foundation of the entire mobile content biz, so its video successor represents an intriguing proposition. Israeli firm Vringo is trying to make it work, but developing the concept around user generated rather than commercial content.Andrew Perlman, Vringo’s SVP of content and community, says: “The ringtone is still the most consumed form of mobile content… and now sophisticated users are using their own clips and inserting them as ringtones.” ME Nov 08

Games 'to outsell' music, video

UK sales of games will outstrip music and video for the first time in 2008, says a report from Verdict Research. A huge shift in consumer attitudes has turned video games into the UK's most popular form of entertainment, say the retail analysts. It predicts spending on games software and hardware will rise by 42% to £4.64bn in 2008, with sales on music and video at £4.46bn. In the last five years the video games market has more than doubled in value, while music sales have stagnated. The good news for game makers in the report was balanced by grim tidings for high street retailers. "The music and video market is not just suffering from a slowing of growth but a massive transfer of spend to online," says Malcolm Pinkerton of Verdict Research. It is online sales of CDs and DVDs that have grown rapidly, rather than digital downloads, which still only account for around 4% of music and video sales. In contrast, video games spending has enjoyed explosive growth, with the launch of major new titles such as Grand Theft Auto IV and FIFA 08, and the Nintendo Wii continuing to broaden the appeal of games. High street music retailers are diversifying as sales of CDs continue to fall. Pinkerton says firms such as HMV and Zavvi are changing store layouts: "They're cutting back on space in music and re-allocating it to more lucrative areas such as MP3 players, books, clothing and video games." BBC Nov 08

Videogames reduce childhood obesity

One of the evils that's been blamed for contributing toward obesity in children - video games - is now being used to promote physical activity. It's called exergaming, video games that spur children (as well as their parents) to use all their limbs rather than only their thumbs. "When we talk about obesity, we often talk about the fast-food industry," said Laurette Dube, organizer of the 2008 McGill Health Challenge Think Tank. "But that's only one side of the equation - the energy-in side. We also have to look at the energy-out side, and that's why it's very important to look at ways in which we can reduce kids' inactive time and increase their share of time that gets them moving." Linda Carson, a professor of physical education West Virginia University, acknowledged that exergaming, popularized by such games as Dance Dance Revolution and Nintendo's Wii Sports, is controversial. "There are some folks who feel that by promoting physical activity through the use of video games, children are being socially isolated or not encouraged to go outside and play," Carson said. "There are some opponents who say that it takes away from traditional physical education exercise." But Carson argued that exergaming is a "wholesome" activity that is free of the violence that plagues so many of today's video games. With the Wii console, for example, children can simulate snowboarding and many other sports in a safe manner. Carson and her colleagues have just completed a study showing that obese and overweight children who play exergames don't gain weight and improve their physiological function. In her study, Carson created two groups of overweight children. The first group spent 12 weeks with a variety of exergames. The second group continued with their regular routine. After the 12 weeks were up, the researchers discovered that the children in the second group gained weight. But the children in the exergaming group maintained their weight, while improving their aerobic ability and endothelial capacity (how well the arteries respond to blood flow.) What's more, some children in the exergaming group expressed for the first time an interest and confidence in trying out for some outdoor sports, Carson said. "I think exergaming needs to be recognized as an exciting alternative to traditional physical education," she added. "There is a lot of value to children having physical activity options in their home and even at school." © Montreal Gazette November 2008

Study shoes videogaamers have richer, better lives

So often seen as the exclusive haunt of hormonal and reclusive teenagers, videogames could well be seen in a whole new light after new studies revealed that games players have great family interaction, enjoy better social lives, and even make more money than those who avoid the popular pastime.
The findings of the studies, one emanating from Canada and one from America, fly in the face of typical stereotypes portraying gamers as overweight teenage couch potatoes leading a largely sedentary lifestyle while wholly devoted to their console of choice.
Some of the statistics unearthed by the Entertainment Software Association of Canada study suggest that one in two Canadians is a gamer and has actively played a software title within the last month, while half of the country’s game-playing demographic is female, over 80 percent indulge in a world of videogames for around 7.1 hours per week, and the average age of a Canadian gamer is actually 40.
“Family gaming is becoming a big part of Canadian families’ pastime. Mom, dad and the kids are all playing together,” enthused Nicole Helsburg, spokeswoman for the Entertainment Software Association of Canada. “Those who grew up playing games have taken that into their adult lives and are now embracing that as a way to spend time with their kids.”
Similarly, an American study conducted by Ipsos MediaCT on behalf of leading videogame Web site IGN concluded that some 55 percent of those polled were married, while 48 percent had children, and 57 percent of parents played videogames on a regular basis with the children, reports the Ottawa Citizen.
And, when separated from the game pad and/or keyboard, the American study found that young and single gamers are considerably more socially active than those who do not game. Specifically, unattached gamers players are twice as likely to be dating, are almost 10 percent more likely to be spending time with their friends, and 11 percent more inclined to partake in sporting activities.
Perhaps surprisingly given gaming preconceptions, the American study discovered that regular videogames players also matched those who do not game when it comes to the time per week they spend with their heads in a good book.
From a professional standpoint, the study also revealed that the average income of a U.S. household closely associated with videogame entertainment is around $79,000 USD, while households without videogame access make approximately $55,000 USD.
According to Adam Wright, director of research for Ipsos MediaCT, its study “underscores the fact that gaming has become a mainstream medium in this country that appeals to people from all walks of life.”
The Entertainment Software Association of Canada study was conducted across 652 Canadian adults and 100 children aged between six and 13. The two-stage IGN study covered both online and single-player respondents and was spread across more than 3,000 American citizens.

Mobile games market consolidation

"Analysis of the UK's ELSPA mobile games chart shows the increasing power of the Big Three publishers - EA Mobile, Gameloft and Glu - and the utter dominance of branded mobile games.The number of games charting in the ELSPA Top 10 hasn't changed much over the years: in 2005 45 games charted, compared to 44 in 2006 and 2007. However, pretty much everything else has.For example, in 2005, 42 per cent of the games that appeared in ELSPA's monthly Top 10 list were own-IP titles. In 2006, this plummeted to 11 per cent, and then 9% in 2007.Meanwhile, in 2005 eight publishers had more than three games appear in the chart: Iomo (7), Digital Bridges (6), Mforma (6), Gameloft (5), Sumea (5), Macrospace (4), iFone (3) and Jamdat (3).By 2007, the top three charting publishers were EA Mobile (12), Glu Mobile (9) and Gameloft (7). Those three publishers accounted for 63.6 per cent of the games that charted last year. All this, remember, is based on sales across all the UK's mobile operators.Is that a bad thing? Your view largely depends on how big a publisher you are (or working with). However, the brand to own-IP ratio is more troubling, since it indicates that the hit-driven mobile games industry isn't having many hits with its own IP.Although based purely on UK sales, our research is also a stark reminder of the problems facing mid-tier publishers when it comes to driving on-deck sales.In 2005, Mforma and Sumea had six and five charting titles respectively. In 2007, by now rebranded as Hands-On Mobile and Digital Chocolate, neither company had a single game appear in the ELSPA chart." Pocket Gamer

Jetix Europe & Wildbrain debut series online

"Jetix Europe will team up with Wildbrain on a new short-form series that will premiere on its website across Europe in early 2009. Wildbrain's Team Smitereen will be the first new short-form series that Jetix will debut in Europe as an exclusive premiere on its websites. Users across Europe will be able to access the new content with new eps being regularly updated on the Jetix sites in Germany, the UK, Spain, Italy, France, Netherlands, Sweden, Denmark, Norway, Hungary and Poland. The slapstick tween comedy was created by The Dan Clark Company and will debut exclusively on the new look Jetix websites beginning early 2009." Kidscreen October 2008

Real world bust means virtual world boom

"Worldwide, economies are slowing and consumers are worried sick about their future.
Despite all the doom and gloom, one tiny sector is offering a glimmer of hope: virtual worlds. Companies such as Gaia Interactive and Habbo are expecting a boost as consumers reduce spending on real-world goods and luxuries and console themselves with so-called virtual goods--digital copies of products that can cost just pennies, allowing users to indulge their materialistic fantasies without spending much.
"As the 'real world' gets worse, virtual worlds get better," Gaia Chief Executive Craig Sherman told Forbes.com in an e-mail. "As things get worse, people spend more time at movies or spend more time on a site like Gaia Online, which provides a relatively inexpensive respite from the offline world." Gaia, which targets U.S. teens and twenty-somethings, had more than 7 million unique visitors in September.
Teen-focused virtual world Habbo boasts a similar outlook. While there is some concern the down economy will reduce the site's ad sales, 85% of Habbo's revenue is derived from virtual goods transactions. The site's 2.5 million U.S. users spend an average of $18 a month, and the average time spent on the site has doubled to 40 minutes per session in the past year, says Executive Vice President Teemu Huuhtanen. He expects the number of unique users--currently 10 million globally--to grow as the site introduces new services and activities.
Kid-focused virtual worlds like Club Penguin and Neopets have boomed over the past two years, becoming an attractive investment niche for large media companies. These sites provide a way for kids to interact with a media property--say, Nickelodeon's legion of characters--in an environment that is cheaper on a per hour basis than seeing the latest flick in the theaters.
EVE Online, a science fiction-themed massively multiplayer game, is going gangbusters. The subscription-based virtual world has gone from 220,000 users to nearly a quarter of a million since the beginning of the year. EVE's on-staff economist Eyjo Gudmundsson expects the game's growth to continue over the next six months--particularly as people look for more inexpensive forms of entertainment. The basic EVE subscription cost is $14.95 per month.
Gudmundsson cautions, though, that virtual worlds that are directly linked to the real world may fall victim to some real-world economic frustrations.
Indeed, the number of registered and active users of Second Life, a virtual world that simulates real-world experiences, have flattened out, says Parks Associates analyst Michael Cai. But this might not be a reaction to the economy; it could be due to consumers shifting to other virtual worlds. Cai predicts that corporations will start using Second Life or custom 3D virtual worlds to hold meetings and cut travel costs." FORBES October 2008