Will the fear of bill shocks deter the die-hard fans of football this coming World Cup 2014 from catching the action on their mobile devices? Will they be tuning into the live matches now available online, streamed directly to their mobile devices regardless of wherever they are? In the past, come major sporting events such as these, ardent fans are known to seek out venues where they can access the television set - from office canteens to cafes and bars - to catch the matches, especially those taking place at times where people are expected to be at work.With high-quality video streaming now so readily available on various smart mobile devices, most communications service providers will be expecting a surge in the streaming of live videos as more and more mobile subscribers turn to their mobile devices to catch their favourite teams in action from Brazil, where the event is taking place.
If the recent research commissioned by Openwave Mobility and produced by Strategy Analytics is of any indication, certain subscriber segments may not be using their mobile devices for watching the event as would have been expected simply for the fear of bill shocks. According to the survey which was conducted across UK, Spain and Germany last month, 68% of Spanish fans, 21.6% of UK fans and 39% of German fans are likely to watch the event on mobile. The survey also indicates that of those who would love to watch the event on mobile, 1 in 3 in Britain said that poor quality video and fears of having to foot a huge bill at month end are major deterrents. The same concern is echoed among Germans where 1 in 3 said they would refrain due to fears around bill shock but a huge 1 in 2 quoted appalling mobile video quality as the reason for staying indoors with a conventional TV set. In Spain there was less criticism with only 1 in 4 subscribers quoting bill shock fears and quality of mobile video as factors deterring them from watching the World Cup on mobile.
Interestingly, the survey also reported that of those people wanting to watch the games on mobile 43% of Spanish, 34% of German and 21% of British subscribers were all happy to pay a fixed fee, ie a video-service subscription fee, to their mobile operator for HD quality World Cup footage.
“Mobile operators must capitalize on the exponential demand for video. A major event like the World Cup does not only generate instantaneous revenues, it can also change habits as people who were not mobile video users realise that this is a great way to keep up with the action. As part of the research, we also looked at the growth in mobile video from the 2010 World Cup. Across Europe we saw 2 to 4 times as many people wanting to view at least part of the games on mobile in 2014. This is not just due to an increase in smartphone penetration, that was already high in 2010. This is more about the increasing penetration of mobile video as an activity people can engage with and enjoy. Unfortunately it seems that much of this momentum will be lost through the old perceptions of high price and low quality. The fact is that consumers are happy to pay a fee for a service that delivers quality and gives them a great user experience. It is now more important than ever for mobile operators to meet the insatiable appetite for mobile video and monetize their data.”
- John Giere, CEO, Openwave Mobility
“Strategy Analytics surveys show that consumers are now regularly watching video on mobile devices. Mobile operators and their TV partners around the world are gearing up for mobile delivery of the 2014 World Cup to smartphones and tablets and there is the opportunity for operators to let users experience the addictiveness of high quality video as a service. To ensure a premium experience these operators need to offer end-to-end optimized delivery and management. Vendors like Openwave Mobility offer important video mechanisms to help these operators deliver a great viewing experience over mobile broadband for what is likely to be the most watched World Cup ever.”
-Sue Rudd, Director Service Provider, Strategy Analytics
