Consumers slowly giving cellphone TV a look

The trend is starting to catch the attention of broadcasters and phone companies

Wannabe divas on Canada's Next Top Model have a new place to vent their frustrations and grab more time in the spotlight: the cellphone.

Confessionals and other content from the show that doesn't air are repackaged into short clips for the so-called third screen, a format that's attracting a following.

The debut of made-for-cellphone TV content reflects a potentially disruptive change in viewing habits. It's a trend that is catching the attention of broadcasters, which need to keep pace with audience shifts, and telephone companies, which must differentiate services amid rising competition.

"Two years ago, you walked into major content companies and showed mobile video and no one had heard about it," said Raja Khanna, co-founder of QuickPlay Media Inc., which enables TV content including Top Model to be played on cellphones. "Now they're hiring people to look at it, and building their mobile content catalogues."

Cellphone TV is still a novelty here, launched in recent years by the top carriers, Bell Mobility Inc., Telus Corp. and Rogers Wireless Communications Inc..

The wireless carriers don't disclose the number of TV clients, but industry observers describe it as the "early adopter" phase. In other words, a small market. Limitations include the tiny screen and choppy video, which make it difficult to watch for a long time, and significant bandwidth use, which is costly for carriers to provide.

"It eats up so much bandwidth and you have to share the revenue with the content providers," said Genuity Capital Markets analyst Dvai Ghose, adding that e-mail and text messaging are currently more attractive for carriers.

Nevertheless, demand is expected to grow as more consumers buy video-enabled cellphones, and the quality of the screens improve.

"From an industry point of view, from a revenue point of view, it's early days," Mr. Khanna acknowledged. "From an interest point of view, there's high interest from every broadcaster right now."

So far, the carriers haven't strayed far from the traditional TV format. Rogers, Bell and Telus all opted to offer MobiTV Inc.'s streaming TV service, with its well-known channels, such as CBC Newsworld and The Learning Channel.

Telus chose that format because it could be introduced quickly, and reflects the way most people watch TV today, explained Telus's vice-president of consumer product marketing, Fred Di Blasio. "We try not to jam technology down people's throats," he said.

While there will always be a place for that format, sports and news highlights, along with clips of shows like Top Model are also popular. Clips are the area where QuickPlay, whose customers include Telus, Rogers, and Bell, is focused. Industry players agree it's best to keep an open mind for now.

"Mobile is growing, but it's still very early days, which means that you shouldn't be limiting what it is that you're trying," said Maria Hale, vice-president of content business development for CHUM Ltd., which offers cellphone content for a dozen shows including Top Model and VJ Search: The Series.

Clips, which typically last one to five minutes, are a natural fit with the cellphone's on-the-go image. They can be easily viewed while riding the bus or waiting in a lineup.

Mr. Khanna refers to it as a "content snack." "How much time are [consumers] away from a bigger, better screen?" he said. "Not a lot of time for most people."

News and entertainment updates are what people want to see on the cellphone, said Greg Treffry, vice-president of business development and specialty networks at CanWest MediaWorks, which offers Global National clips for cellphones.

Rival network CTV also believes the highlight format shows promise. The network recently launched cellphone reports for Report on Business Television and CTV News. And a few months earlier, it unveiled the 10 Spot Grab, a mix of previews, highlights and excerpts from MTV's top shows.

"It's those little moments where you want a little entertainment, a little story, to catch up on the news and hockey highlights," said Kris Faibish, CTV's vice-president of digital media.

More content changes could be ahead as CTV's owner, Bell Globemedia, which also owns The Globe and Mail, last week agreed to buy CHUM for $1.4-billion.

Not every show is ready for cellphone prime time yet, Mr. Khanna said. Since it's early days, news, youth-oriented shows, and flagship programs make the most sense for now, he believes.

The duration and content of shows aren't the only things that may be altered. Different factors that should be taken into account when creating content for the smaller screen include sound and camera angles, Ms. Faibish said.

"You're going to see changes made so viewing is much more amicable for cellphones," predicts Andrew Wright, director of business development at Bell Mobility.

While the fate of mobile TV is still up in the air, what does appear clear is that the TV set is unlikely to pull a disappearing act from the home any time soon.

"For us it's an extension of your traditional TV experience," Mr. Treffry said. "You're still going to come home and watch Survivor on your TV."

CATHERINE MCLEAN

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