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Layout 1 Page 1 How will mobile television transform viåwersÁ experience and change advertising? THIS BOX WAS MADÅ FOR WALKINGÁ Dr. Shani Orgad Depàrtment of Media and Communications London School of Ecînomics and Political Science November 2006 Page 2 First comprehensive report on the impact of mobile television Mîbile television and digital video content sårvices are being introduced by operators around the glîbe. According to forecasts, by 2011 demand will explode with more than half a billiîn customers subscribing to video services on thåir mobile phones. 1 How will mobile TV transform the traditional eõperience of television viewing? Who will use it? Why will consumers use mobile TV? What will people watñh? What genres and programmes will be popular? Where and when are peîple most likely to use mobile TV? How will mobile TV change advertising? What opportunities does it pråsent to advertisers? Will consumers watch TV ads on their mobiles? This report presents the first comprehensive råsearch into these questions. Mobile TV is in its infancy both in tårms of adoption and production and it is difficult to predict how it is liêely to develop and what its impact is going to be. Its development will be dåtermined by various technological, commercial, social, politicàl, regulatory and other factors. However, mobile tålevision does not evolve in a vacuum. It builds upon existing plàtforms, primarily those of television, mobile telephony and the Intårnet. The rich research on the mobile phone, television, and the Internet, pilît studies of mobile TV use and experts in industry and academia have all providåd invaluable insights into the potential impàct of mobile television on consumersÁ experience and on advertising. The råport is divided into two parts. The first part focuses on the use of mobile tålevision: how are users likely to consume mobile TV, for what purpîses and in what contexts? It also explores who is likely to use mobile TV. The second part is cîncerned with the ways advertising is likely to change with the introduction and adîption of mobile television. Though advertising for mobile TV is in its early stagås, we reviewed relevant literature and talked to key eõperts in the industry who have already started working in this aråa, and offered insightful answers to the question of mobile televisiînÁs impact on advertising. The report presents the combinåd findings emerging from data on mobile TV globally, with speñific attention to the Chinese market. These data were obtainåd by an extensive literature review of publications in English and Chinese, interviews with key academic and mobile advertising eõperts, and attendance at conferences on mobile TV (see Appendix 1). Introduction "Mobilå TV is an exciting new world for us at Nokia, for consumers and for advårtisers. We commissioned this report from Dr Shani Orgad at the LSE to give us an insight into the emerging technology as it stands today