Short presentation on current state of mobile TV in Japan, doing away with a few myths in the process.

1. 1seg: Mobile TV in Japan
Market Overview
Tokyo, October 27, 2008
Christopher Billich

2. 1seg
Introduction
NHK-developed ISDB-T
standard
(Mostly) simulcast + BML
data feed
Free reception
Lack of business model
Tailored content starting to
appear, but limited due to
high development costs
Early advertising
experiments
Battery life issues

3. Cumulative Handset Shipments 81
in million
71
64
Percentage of 1seg-enabled 55
handsets shipped
32 41
30 36
28
20
14
10
6
2 3
0 1
Mar Jun Sep Dec Mar Jun Sep Dec Mar Jun Aug
2006 2007 2008
Source: JEITA, August 2008

4. Top 10 Most Popular Phone Functions
Other than Voice and Email
1. Calculator
2. Alarm Clock
3. Camera
4. Calendar
5. Note Pad
6. QR Code Reader
7. 1seg
8. Game Apps
9. Infrared
10. Music Player
Source: goo Ranking, September 2008

5. Usage by Time of Day
”When do you use 1seg?” - in %
39
7 am 32
11 pm
20
15
12 12
6
3 3
2 2 2
t
t
t
h
...
...
er
d
se
r
r
er
as
fas
as
ne
ne
nc
be
to
m
u
nn
th
kf
kf
in
in
ak
fro
lu
’t
O
re
e
ea
a
di
gd
rd
on
ut
re
re
s,
fo
br
e
re
ak
m
gb
rb
D
te
in
ut
Be
fo
re
om
re
ur
Af
m
te
in
Be
gb
Source: japan.internet.com, October 2008
fo
D
om
ur
Af
C
Be
in
D
Base: Users with enabled handsets, N=89,
C
ur
multiple answer
D

6. Usage Frequency
”How often do you use 1seg?” - in %
2008/08 8 12 17 45 18
2007/07 11 12 18 41 18
2006/05 12 14 14 41 19
Every day 3-4 times/week 1-2 times/week Spontaneously Don’t use
Source: Seed Planning, September 2008
Base: Users with enabled handsets,
N = 600 (2008; 2007), 300 (2006)

7. Usage Context
”Where/how do you use 1seg?” - in %
37
At home, room with no TV
33
41
38
25
At work or school
27
7
6
24
Right before/after sleep
22
29
24
23
Waiting for public transportation
22
17
16
18 Weekdays (2008)
Passenger-/backseat of car
19 Weekdays (2007)
21
21 Weekends (2008)
17 Weekends (2007)
On train/bus
17 Source: Seed Planning, September 2008
13 Base: Active users,
12 N = 497 (2008), N = 494 (2007)
multiple answers

8. Usage Context (ctd.)
”Where/how do you use 1seg?” - in %
15
In room with TV 15
17
18
13
At store/cafe 6
13
8
11
Waiting in line 11
12
12
10
Waiting for people 18
12
18
9
In bathroom 5
8
4 Weekdays (2008)
7 Weekdays (2007)
Doing chores at home 7
7 Weekends (2008)
8 Weekends (2007)
3
Other 4 Source: Seed Planning, September 2008
1 Base: Active users,
3 N = 497 (2008), N = 494 (2007)
multiple answers

9. 1seg vs. Mobile Video Downloads
”Which do you use more?”
Neither
13%
Video 17% 1Seg
70%
Source: japan.internet.com, October 2008
Base: 1seg/mobile video active users, N=89,
multiple answer

10. Usage Position
Mobile Moving Image Content
Other
Lying down
Phone in 1%
charging 12%
stand 5%
Phone
53% in hand
Phone 29%
on table
Source: japan.internet.com, October 2008
Base: 1seg/mobile video active users, N=89,
multiple answer

11. Consumer (Dis)satisfaction with 1seg
in %
59 61
34
9
Completely satisfied Battery life No service in some areas Clarity of reception
Source: CIAJ, July 2007
Base: Mobile Phone Users in Tokyo/Osaka
(multiple answers possible)

12. Preferred Types of Programming
in %
Users w/ Enabled Handset Users w/o Enabled Handset, but
and Viewing Interest Viewing Interest
70
63 65
54
50 48
46
22 25
21
-- --
s
s
s
s
ts
a
t
ts
a
t
ts
a
t
ts
a
t
en
en
en
en
ew
ew
ew
ew
m
m
m
m
or
or
or
or
ra
ra
ra
ra
m
m
m
m
N
N
N
N
Sp
Sp
Sp
Sp
D
D
D
D
ain
ain
ain
ain
rt
rt
rt
rt
te
te
te
te
En
En
En
En
Men Women Men Women
Source: Infoplant, April 2007

13. Use of BML Data Feed
“How often do you use this feature?”
Often
Never
34% 7%
29% Sometimes
31%
Rarely Source: goo Research, September 2007
Base: Active 1seg Users

14. Simulcast vs. Tailored Programming
in %
“Prefer
Simulcast” 46.7 53.3
“Prefer
Mix of
Simulcast and 49.5 50.5
Tailored
Programming”
2008/09 2007/07
Source: Seed Planning,
September 2008; July 2007
Base: Active users,
N = 497 (2008), N = 494 (2007)

15. Beyond Simulcast
Fujitsu Spotcasting
Local area broadcasting
with limited reach
H.264 format plus BML
Automatic launch of
1seg client and tuning
via FeliCa chip on phone
Installation cost: ca. USD
1,000
In-store broadcasting,
temporary broadcasts at
Source: Fujitsu
events, security
applications etc.

16. Beyond Simulcast
1seg + QR Code Coupons
NTV, Coca Cola &
NTT DoCoMo Trial,
September 2007
Receive QR code
coupons via BML feed
Redeem at over 20,000
QR code reader-enabled
vending machines
P2P distribution of
Source: NTT DoCoMo
coupons via Ir, Email and
NFC

17. Beyond Simulcast
1seg + Games + Coupons
TBS & McDonald’s Trial
Campaign, July 2007
Sports Betting Game
during Baseball Broadcast
Prizes: Coupons
redeemable at McDonalds
Source: AV Watch

18. Infinita
Business Areas

19. Infinita
Selected Clients

20. Thanks!
billich@infinita.co.jp
www.infinita.co.jp/en
www.slideshare.net/cbillich/slideshows