Is The Future Mobile TV?
“NewTV”, a $1 billion video entertainment company, is on the horizon. The brainchild of Jeffrey Katzenberg and Meg Whitman is a mobile video-subscription service, stocked with bitesize, 10-minute, big-budget shows.
The start-up, backed by major Hollywood production companies, Chinese technology giant Alibaba, and blue-chip companies alike, will launch in 2019.
TV For The Mobile Generation
The idea is based on the rising trend of people watching tv on their smartphones and NewTV have the statistics to back it.
On average, the number of minutes videos are viewed on a daily basis has risen from about 14 minutes in 2015 to 35 in 2018 as per Mary Meeker’s latest “Internet Trends” report.
Still, we have no idea what the NewTV platform will show, how it’s going to look, and what it will cost for the consumer. Even the name itself is temporary.
So, what is going to drive NewTV’s success? Previous mobile video providers such as Verizon’s Go90, Jason Kilar’s Vessel or Samsung’s Milk Video have all ended up in the bin.
To set NewTV apart from the rest, 3 questions need to be answered:
1. Will NewTV Be Supported By A Working Subscription Model?
Katzenberg strives to invest an approximate $5,000 per minute. This is considerably lower than some of the huge TV shows that are popular at the moment, like Game of Thrones, which spends a staggering $100,000.
In our opinion, there needs to be considerable investment in production in order to justify a subscription model.
2. Will People Actually Pay For Mobile Tv As They Do For Mobile Music Like Spotify?
Premium mobile video subscription services are not automatically going to be successful. Mobile music streaming services can be used at any point during the day; while working, driving, shopping, exercising.
On the other hand, video requires your full attention, so it will be interesting to see whether consumers have the same willingness to spend.
3. Can NewTV Compete With The Already Existing Streaming Services Such As Netflix?
While NewTV may be the only player focusing solely on big-budget mobile TV, other streaming services already offer the option to watch on mobile devices.
Furthermore, the list of free subscription services for mobile is long – YouTube, Snapchat, Facebook and Instagram to name a few.
Mobile Video & Short And Snappy Content Drives Success
NewTV’s success will depend on the breadth of its offering, its affordability, and whether there is an added benefit to the consumer. That said, we at VideoSmart see huge potential.
Our B2C campaigns see 55% of videos being watched on mobile devices on average, with some campaigns reaching a 75% mobile view rate.
NewTV follows a trend we discovered long ago – short and snappy content works. We are living in a digital era in which many consumers watch video on the go to support their busy lifestyles.
Consumers are focusing on bitesize media that won’t drain battery life and can be accessed during breaks, commutes, or during that brief moment of free time you find for yourself.
Will NowTV break the Internet? We’re not sure, but we’ll be waiting for it in anticipation.
