Introducing the Future of Mobile TV

As Korean companies bring new technologies to the U.S., broadcasters are investigating simpler, cheaper ways to put shows on portable devices

by Olga Kharif

Want to check out Friday Night Lights during your commute home? How about Boston Legal? Good luck. Despite all the talk of watching live television on your mobile phone or other portable device, the idea is more promise than reality these days. What you can get, if you can get anything, is short, prerecorded video clips or a handful of channels that your all-powerful wireless carrier has chosen for you.

All of that may be about to change. Two companies from Korea, land of the wireless future, are bringing technology to the U.S. that will allow television stations to bypass wireless carriers altogether and deliver programs directly to mobile phones. The latest development on this front came on Apr. 3 when LG Electronics, in partnership with Harris Corp. (HRS), unveiled new, inexpensive technology that allows stations to zip local news and other video content to phones, portable video players, and in-car entertainment systems within a 45-mile radius.

Keeping Control

The announcement comes just as station owners are stepping up their efforts in mobile television. A number of broadcasters are in the midst of negotiations to form a coalition for mobile-TV technology. The talks, which have not been reported publicly, are aimed at helping the services take off and could be announced as early as the National Association of Broadcasters convention later this month. "We believe that mobile TV is really the next killer application for broadcasters," says Brandon Burgess, president and CEO of ION Media Networks, which is participating in the negotiations. "There are a lot of broadcasters that are of the same mind."

The sudden emergence of direct-to-consumer broadcasting is a significant blow to companies that have been advocating alternative approaches. They include Qualcomm's (QCOM) MediaFlo, Crown Castle's (CCI) Modeo, and satellite radio companies XM (XMSR) and Sirius (SIRI). MediaFlo, for example, has been working with wireless carriers so that they can offer some television programming to their customers.

Now, the Korean technology could bypass that approach, cutting out the wireless carriers. "We don't need carrier partners," says Jay Adrick, vice-president at Harris' broadcast communications division. Besides the LG and Harris announcement, Samsung unveiled a similar technology earlier this year. TV broadcasters like the idea that they will be able to keep control of their programming and advertising—rather than becoming beholden to wireless operators. Burgess says that members of the coalition, if it is formed, will decide on one technology standard, most likely LG's or Samsung's. They will also determine whether to offer mobile TV for free, or to charge a small fee for the service.

Not Threatened

The potential alliance creates all sorts of problems for rivals. XM and Sirius have been working for years on ways to deliver video to cars. Sirius is expected to finally make video available in some 2008 model cars later this year. (To make matters worse, the LG technology will allow TV stations to transmit radio signals—so XM and Sirius may see more competition in their core radio business.)

At least XM and Sirius have another business. MediaFlo and Modeo have concentrated on creating mobile TV for wireless service provider partners (see BusinessWeek.com, 3/1/07, "Wireless Rivals Primed for Mobile TV"). Carriers such as Verizon Wireless have been hoping to charge subscribers $15 to $25 a month for access to MediaFlo's channels.