The impact of interactivity on mobile broadcasting value ... - CiteSeerX

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The impact of interactivity on mobile broadcasting value chains Roman Högg, Robert Martignoni, Katarina Stanoevska-Slabeva

Abstract— Mobile TV is expected to be the crucial mobile service application driving the short- and mid-term development of the mobile service industry. Mobile TV can be seen as the bearer for additional interactive service elements. Interactivity is perceived to be a new source of revenue and the decisive factor for success of future Mobile TV and other mobile broadcasting services. Interactivity is defined, and different options to implement interactivity are identified and classified in this paper. In addition, the impact on broadcasting value chains is analysed. Index Terms— Mobile Commerce, Mobile Services, Business Models, MBMS

I. INTRODUCTION

M

OBILE TV is certainly the key application for mobile broadcasting technologies. Mobile TV addresses a very attractive market since it can rely on globally well established markets [1]. However, the currently anticipated plain Mobile TV services constitute only the first step of the development. The 2nd generation of mobile broadcasting application will be inspired and differentiated by interactive elements. Examples of interactive elements are: voting, quizzes, call-in shows and user generated content. Interactive elements gain importance to retain the attentiveness of the TV audience and to create new sources of revenues [2]. While, the most probable pricing model for plain mobile broadcasting services is a flat rate for a certain service, interactive elements allow additional revenues by pricing models based on per unit consumption. Examples of such pricing models are pay per use, or pay per transaction. Mobile Broadcasting and interactivity are both emerging business models determining the form of future mobile services business models. However, despite of their importance, interactive elements in mobile broadcast services have received little attention in research yet. Interactivity elements have been subject of research in the project C-Mobile. One aim of the project is the development of scenarios for future interactive services and the analysis of business models and mobile value chains for interactive mobile broadcasting services. In a first step, based on a stateof-the-art review in the context of the C-Mobile EU project potential future interactive broadcasting applications have The results presented in this paper were produced in the framework of the C-MOBILE IST-2005-27423 project. The project aims to evolve the MBMS towards a converged global network based on the usage of multiple broadcast transport bearers.

been discovered. The identified interactive services served as input for a detailed assessment of the required functionalities to implement those applications. For further investigation the functionalities were assigned to generic service functions. In a next step potential business models and value chains for interactive mobile services have been investigated and conceptualized. The analysis revealed that different business models and value chains of mobile broadcasting services are possible, depending on the specific distribution of tasks, power, customer relationships and revenues among the involved participants in the value chain. The value chains vary depending on which player is driving the value chain. The results of this research are presented in this paper. The content of the paper is structured as follows: Section II provides a definition of interactivity and classifies interactive elements. Section III provides an overview of the necessary generic services to implement interactive mobile services. Section IV describes the mobile broadcasting value chain. Section V provides a description of the market for mobile broadcasting services. And section VI provides an overview of different interactive mobile services' value chains. Section VII concludes the paper with an elaboration of the future development of the mobile broadcast market. II. INTERACTIVITY Interactivity is "quintessentially a communication concept" [3], which Jäckel described as an extension of interaction [4]. Sophisticated interactivity or user interaction is based on an additional return channel to a broadcasting channel, which allows to request information, offers and services [5]. Jensen described interactivity as "a measure of a media’s potential ability to let the user exert an influence on the content and/or form of the mediated communication" [6]. There are different approaches of categorization of interactivity. Jensen identified the four sub-concepts transmissional, consultational, conversational and registrational interactivity [6]. Others developed 2dimensional models (multimedia information flows and dependent aspects) [7], 3-dimensional models (frequency, range, and significance) [8] and also 4-dimensional approaches (degree of available choices, modifiability, linearity and the quantitative number of selections and modifications) [9]. It is suggested to use a more general approach to categorize interactivity in the mobile broadcasting industry, since interactivity can take different forms in a mobile environment.

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The suggested categorization of interactivity of mobile broadcasting service can be based along two dimensions - the bearer context of the interactivity element and the type of interactivity (which is shown in figure 1). Interactivity

Live TV

Interactive TV – Voting Interactive TV – Transaction services

Mobile Specific Visual Radio

On-demand Services

Ubiquitous Gaming

Real-Time Content Updates for Games

Online Games

Alerts Content-Casts EPG Service Personalised Content Delivery Portal Web Browsing

DRM key distribution

Messaging / Chatting Multi-Party Conference Call Peer content distribution Push-to-Talk

Prefetched Operator Portal Location-sensitive content delivery OTA configuration Distribution mode selection International Roaming

Navigation system updates Software updated

Bearer context

Format

Community Platforms Real-life tagging Social Bookmarking

Blogs

Short Term

Medium Term

Long Term

Fig. 2. Overview of mobile broadcasting services Independent

Selection

Supporting

Decision

Embedded

Participation Content

Fig. 1 Categorization of Interactivity

Content

Application

Broadcasting Multicast Unicast Requests Upload

Content Storage

III. GENERIC SERVICE FUNCTIONS

Content Adaptation

The currently available or needed service functions can be identified by elaborating potential mobile services. Mobile Broadcasting services can be defined as supply of broadband multimedia content (especially audio video content) to the end-user who utilizes different end devices and network technologies independently (based on [10]). In the C-Mobile project, based on scenario development, a number of future applications which require a mobile broadband connection have been identified (see Fig 2). However, there are a number of additional components required to realize the application in addition to the broadcasting bearer.

Meta-Tagging

Content Play-out Program On-Demand

Links Evaluation

Content Catalogue Flagging

Business Logic

Content Editing

User Data Transfer

Content Reception

(Personalization and Customization)

The bearer context describes the integration of the interactivity in the media content. The interactive element can be independent from, supportive of or embedded into the content context. The type of interactivity subsumes the form of communication in regards to the interactivity component. The interactive format describes the communication between the user and the interactivity provider. These forms can be described as follows below (in this case with TV as a bearer medium): • Selection, the user can passively select a specific content, e.g. TV zapping. • Decision, the user can actively select content, e.g. votings for a specific content • Participation, active involvement in a TV show (e.g. quizzes, call-in shows) • Content creation, the user provides own content (e.g. "Funniest home-videos") The integration of interactivity in existing respectively innovative usage scenarios is considered in the following section. It needs to be acknowledged that interactivity can be realized by the utilization of existing service functions. The combination of those functions leads to interactive service elements.

The categorization of the service into short-term, middleterm and long-term perspective is based on the maturity of the market and the required technologies. The middle-term and long-term applications are very complex application, which are a combination of advanced technologies and innovative business models. Identifying a basic set of common service functions to implement the mobile applications is a similar approach to the Open Mobile Alliance (OMA)1. OMA identified a basic set of service enablers based on the principles of intrinsic functionality, delegation and reuse of enablers, protection of enablers and reuse, and extensibility [11]. In contrast to OMA, the result used in this paper is based on commercial issues, whilst OMA's approach was rather based on the technical issues. These service functions necessary to implement broadcasting services can be further distinguished into the following categories (see figure 3): • Content management • Content flagging • Content play-out • Business logic • Data Transfer Services • Supporting Services

DRM Classification Price

User Management Group Management Subscription Management User authentication

Location Services User Localization Location based content delivery

Charging Payment authorization Settlement Refunds

Policy enforcement DRM AVS

Fig. 3 Overview of generic service functions

A. Content Management The Content Management is related to all types of transaction related to the content. In the typical case the content provider operates a content management system to 1

http://www.openmobilealliance.org

Mobile Summit 2007 edit, store and adapt the content to the different channels. In emerging business models, the content provider also needs to provide a content reception possibility. B. Content flagging Content flagging is closely related to the policy enforcement, which is a supporting function. This function allows to assign a specific requirement to the content, e.g. in the area of access control it could be a flag that the underage are not allowed to access the content, but it could also be a price-tag. C. Content Play-Out In a broadcasting environment the content play-out takes crucial position. The broadcasting of content needs to be scheduled and timed according to the published program or according to the demands of the served applications. D. Business Logic The business logic is the central component of the business model. The business logic specifies the execution of the service functions. In addition, the business logic determines the management of the hand-over of relevant data between the particular functions. E. Data Transfer Services The Data Transfer Services manage the transportation of the data between the user and the content provider. There are different modes of data transfer. There is the upload of data (from the user to the CP) and vice versa the download. In addition, there are different transportation modes, such as unicast (one-to-one), multicast (one-to-many) and broadcast (one-to-all). The combinations of the different data transfer modes are the frame of the business model. F. Supporting Services The supporting services are important additional functions to create a sound business model. First of all, without payment, billing and charging services capable of efficiently handling of micro payments, a business model would not be feasible. Services such as an Age Verification System (AVS) allow market players to provide critical content - without an AVS some mobile services would not comply to legal obligations. Another critical support service is user management together with management of interactivity results. This two support services provide a direct interactive contact to the customer and valuable customer information that can be used for customer relationship management purposes. In the analysis of generic functions a potential interactive service function has been intentionally left out. The reason for this is that interactivity can be interpreted and realized by bundling of the above described basic functions in many different forms and contexts depending on the core competences of the involved players. The critical issue for each player involved in the value chain is the question if there is core competence available to provide the required functions and based on that the positioning of the

3 players along the value chain of interactive mobile broadcasting services. The share of functionality provided by the specific player and his positioning in the value chain will have a direct impact on the share of revenue. Some of them like data transfer and billing services - are clearly in the core competence and domain of a Mobile Network Operator (MNO) and others as for example management and design of interactivity seem on a first glance to be the business of a MNO, but on a second glimpse, this first judgment becomes questionable. There are certainly some functions that enable a strong position in the value chain, but can be carried out by both the CP and the MNO. Examples of such functions are management of users in terms of customer relationship management, design and management of interactivity during broadcasting. In the following section different options for positioning the different players in the value chain of interactive broadcasting services are discussed. IV. MOBILE BROADCASTING VALUE CHAIN Like any other service or product mobile services involve a number of players in a chain of value-adding activities [12] (also see figure 4). Sigurdson and P. Ericsson distinguish three functions in regards to the content value chain: the content production, aggregation and distribution [13]. The special characteristics of the mobile service industry are the exclusive assets which are under control of some firms [14]. Jørstad et al have identified the Operator (MNO, the Wireless Application Service Providers (WASP), Content Providers (CP), and Content Aggregators (CA) as provider of the mobile service [15]. In this paper the role of the CP and CA are jointly observed. Content Production

Content Aggregation

Application Provisioning

Network Hand-Set

Distribution

UP-Link Downlink-Link

MNO

MNO

CP WASP

Fig. 4 Value creation and players of the value chain (based on [16])

One of the main questions of the mobile services battlefield is the position of the MNO [17]. There are different options of the positioning of the MNO in the broadcasting ecosystem. Figure 5 shows the different types of business relations. 1:1 Relation between MNO and CP CP 1 CP 2 CP X

CP 1 MNO

WASP market

1:many Relation between MNO and CP

CP 2 CP X

MNO A MNO B MNO C

MNO A

CP 1 CP 2 CP X

WASP

MNO B MNO C

Fig. 5. Different Business Relations between MNO and CP

A 1:1 relation between the CP and the MNO means an exclusive contract between the CP and the MNO. In this case the CP reduces the potential market size to a fraction of the total market (the subscriber base of the MNO). In a many-tomany scenario, several CPs provide content for a number of

Mobile Summit 2007 MNO. This is certainly the most complex market, which can emerge. The following scenarios can be distinguished: A. MNO Centric Approach (walled garden) Mobile TV implemented by the MNO results into a system, which is dominated by the MNO. The MNO determines the selection of the TV channels, fixes the end consumer pricing and does the marketing (in co-operation with the TV stations). B. MNO Centric Approach (platform) The MNO provides an application platform for content providers. The CP can freely manage the program. The flexibility is limited by the application provided by the MNO. C. Broadcasting centric approach The broadcasting service centric approach means that an independent entity manages the broadcasting services. This broadcasting entity is selling the service either to the TV stations (similar to the satellite broadcaster) or as white label service to consumer brands. D. 3rd party dominated scenario Service providers have already positioned themselves between the content provider and the MNO in the conventional mobile services industry. These 3rd parties provide different services across different mobile networks. The first service providers provided the transportation of SMS globally. They could offer this service, because they optimized the costs and increased the reliability of the SMS transportation significantly. Many service providers have already built up infrastructure to support mobile interactivity (for example mobile voting) for the traditional broadcasters.

4 the CP needs to co-operate with all MNOs in one specific market. The market is usually defined by the level of similarity (language, culture, etc.) and not by the coverage of an MNO. In order to be able to address all consumers, the service functions and their implementation needs to be compatible across different functionalities. The interoperability determines the economical feasibility of a usage scenario for the CP. Interfaces need to be practical for the user, which means that the interface needs to be aligned with the business process of the business partner from a technical perspective. It is very important to assure that not only on a technical level the functions are aligned, but also on the business level. For example, the flagging of a specific content item (setting a price tag) needs to result in a respective policy enforcement, which means charging of the price to the consumer. The interaction between the functions is shown in the following figure. VI. INTERACTIVE MOBILE SERVICES' VALUE CHAIN The key requirement of realizing interactivity is the management of the return channel. Interactive services require a time dependent respectively a content dependent communication between the user and the broadcaster. The implementation of this communication is determined by the way the future mobile broadcasting industry will be organized. The mobile broadcasting value chain is illustrated in figure 3 below.

V. MOBILE SERVICE MARKET STRUCTURE Mobile services are launched on a trial and error manner [18]. The associated business models are dynamically emerging. Currently, the business models are optimized in terms of minimization of investment and risk. The key requirement of a commercially successful product is the existence of a market, which means consumers willing to consume the product or service [19]. For the implementation of the usage scenarios, the functions have to interact. The requirements are derived from the interaction between the functions and the market structure of the mobile industry: • Alignment of the business processes • Business policies • Interfaces • Interoperability The alignment of business processes refers to the compatibility of the underlying logic of the business processes. The end-to-end process based on the combination of different functions needs to be seamless. The business policies need to support the usage scenarios and offers a fair co-operation between the partners. Since the content provider (CP) intends to address as many consumers as possible, a limitation to one specific mobile network is not feasible. Thus,

Fig. 3 Value creation and players of the value chain (based on [20])

The Digital Terrestrial Action Group (DigiTAG2) structures the business models based on the player that is driving the business model. They have identified four alternatives: MNO led business model, broadcaster led business model (T-DMB in South Korea), consortium led business model (e.g. S-DMB in South Korea) and the wholesale business model (e.g. MFD in Germany) [21]. These business models have been taken as input to develop specific value chains for interactive broadcasting application. They are described briefly below. A. Interactivity in a "walled garden" Interactivity in a MNO world is based on a meta language to describe interactive elements. The MNO is designing basic 2 DigiTAG aims to encourage and facilitate the implementation and introduction of digital terrestrial television services using the standards developed by Digital Video Broadcasting (DVB). Homepage http://www.digitag.org

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interactive elements that are offered to the Content Provider (CP), e.g. the CP integrates a voting within an entertainment format, which means that attached to the core video content certain information is created informing the MNO to run a voting application at a certain time of the video. While the CP still has full control of his content and its usage, the MNO provides all the necessary interactivity services for the CP. The main concern in this scenario is the limited flexibility of the CP regarding the design of the show and especially the interactive elements. B. Open Interactivity platform The MNO offers an open platform to provide generic interactive services (as described in figure 2). The content provider can combine these generic functions to build a business model according to their market understanding. The further enhancement of the business models depends on the strategy of the CP. The MNO is not interfering with the content business of the CP. C. Co-operative Interactivity The establishment of a new entity (the broadcasting provider) leads to an increased complexity of the business models. The broadcasting provider has not the means to implement a feedback channel, while the MNO has not the means to offer broadcasting services. A co-operation is indispensable to offer interactive services. A crucial detail will be the design of the interactive elements, if the broadcasting provider decides to cooperate with different national MNO. D. Interactive Service Provider A man-in-the-middle approach could be the solution to avoid possible resentment. The players on the market would not be required to agree on common standards and business policies. The alignment on a technical and business level is realized by a 3rd party in terms of interfaces, operations, and contracting.

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VII. OUTLOOK The uncertainty and complexity of the mobile service markets hampers the prediction of the future market structure of mobile services. Considering the globalization of content commercialization and the increasing sophistication of mobile services in terms of content quality and functionalities a valid prediction seems to be unrealistic. It can be postulated that interactivity will have a major impact on the success of broadcasting services. The exact form and position within the mobile services value chain remains uncertain for the time being. A granular perspective on identified future scenarios does at least allow a valid approximation of the impact of the different scenarios on the realization of interactive elements. This approximation is an important input for the evaluation of different development option for the service functions. The identified mobile broadcasting applications and the fundamental generic service functions are the basis for qualified input to the standardization consortium of

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