European Mobile TV Market Needs Room to Breathe

The Mobile Entertainment Forum (MEF) has warned that proposed amendments to the existing 'Television without Frontiers' (TWF) Directive risk dramatically reducing Europe's competitive edge and stifling innovation. Under the amendments, current rules and obligations designed with traditional TV in mind would be enforced for mobile multimedia services, including mobile television broadcasting (linear) and video on-demand (non-linear) services.

A paper submitted by MEF to Viviane Reding, Commissioner for Information Society and Media, outlines why MEF members believe such regulation would stifle the growth of the Mobile TV market in Europe.

According to MEF members, which span operators to content providers and media owners, the highest priority is to highlight that the level of advertising control appropriate for traditional broadcasting cannot, and should not, be exerted on mobile multimedia services. The TWF Directive encompasses regulation relating to the length, frequency and appropriateness of advertising depending on content, target market and timing.

Firstly, the MEF paper outlines concern over difficulties with compliance and enforcement of the proposed amendments. Even within a narrow geographical area, some content may be available via a mix of linear and non linear delivery, depending on method or time of distribution. It is therefore impractical to assume that the same rules can apply to advertising associated with content delivered and viewed in this relatively uncontrolled manner.

Secondly, a heavy legislative burden would add undue financial pressure to an industry in its infancy - rather than encouraging investment in innovation. In addition, the nature of on-demand services requires high levels of network capacity, either for streaming video content over 3G networks or building dedicated networks. These demand significant investment.

The MEF paper also highlights additional funding challenges for service providers on new platforms. Unlike traditional broadcasters they do not receive public license fees or have established advertising income streams. As a result this emerging industry needs room to establish itself before being subjected to additional legislation.

Patrick Parodi, MEF Chairman comments, "We agree that an effective legislative framework will create the level playing field necessary to foster technology and service innovation, however we feel the proposed amends to the TWF Directive are premature and could stifle the growth of the nascent mobile entertainment industry."

Parodi continues, "New user-centric mobile video and music applications are some of the fastest growing, most innovative audio and video services in the world. For Europe to become the region where these services are first developed, it will need to adopt a regulatory framework that provides the sufficient breathing room for these to find a place in the market and evolve to fit the needs of consumers."

The MEF paper concludes that Member States should be granted discretion to exclude mobile multimedia services from regulatory obligations to allow them time to develop."

Posted to the site on 25th July 2006