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Hello and welcome to the spring edition of the MIG Group newsletter - dig-it.

After a year of uncertainty, confidence is returning to the Participation Media market. SMS/MMS interactivity is returning to interactive broadcast services and companies in the value chain are starting to explore opportunities once again. Can this type of transformation be maintained? We think it can and have been actively working with broadcasters, production companies, service providers, network operators, trade associations and regulators in order to bring greater clarity, compliance and reliability to this extremely popular section of media entertainment services.

Voting and taking part in TV competitions accounted for 13% of all premium rate phone services in 2007. They were also the most popular premium-rate service among 25-34s, with two-thirds of the demographic having used them. We're working towards making this market extremely vibrant, creative, lucrative and full of opportunities once again, with the promise that consumers can use Participation Media services with full confidence.

Participation Media refers to any form of television, radio or print that invites viewer involvement using multiple participation methods, and makes extensive use of premium rate telephony services (PRTS) and mobile text messaging (SMS and MMS). Although impossible a decade ago, this type of interaction has had a vast impact on modern entertainment in many countries, and has dramatically changed the media landscape and mass-market revenue generating opportunities readily exist.

There have been well publicized problems over the past 12 months but recent activity within the value chain has begun to restore confidence. O2 has recently upgraded its network adding greater capacity and the ability to process messages through its gateway far quicker than previously (2,000 per second) and the mobile web and MMS is beginning to take off, thanks to recently introduced cheaper data plans for mobile users, making it affordable to popularize the mobile internet. In December 2007, over 17 million people (23 percent of mobile users) used the mobile internet in the UK, according to the Mobile Data Association (MDA); more than six billion text messages were sent (up from 5.3 billion in December 2007); and 57.6 million picture messages (up 55 percent) were sent. And on New Year's Eve alone 290 million text messages were sent by users.

Moreover, companies across the whole Participation Media value chain have been working together to ensure that consumers can use services with confidence again by agreeing best practices, establishing clear compliance guidelines and promoting pricing transparency. Last month PhonepayPlus, the regulatory enforcement agency appointed by Ofcom, published results of a survey on premium rate services in TV. Its chief finding was that it is the industry's ability to regain consumer trust that will determine the growth of services in 2008. Efforts led by the trade body, to which MIG are a sponsor member, the Association of Interactive Media & Entertainment (AIME) and the Mobile Entertainment Forum (MEF) are continuing to work toward's this goal and regular meetings between operators, service providers and broadcasters will continue throughout the year ahead.

In addition, MIG is supporting AIME's Guide to Interactive Broadcaster Services, a set of best practice guidelines designed to educate and inform all members of the Participation TV value chain in order to prevent problems arising in the future.

Ofcom has also announced new measures to strengthen viewer and consumer protection in Participation TV programmes through new, mandatory license conditions for broadcasters. The new license scheme will ensure that audiences, including those who choose to participate in programmes, are adequately protected and will help restore trust in participation TV by allowing early detection of compliance issues.

In the rest of this newsletter you'll learn what else MIG has been up to in recent months, including our latest announcements, industry news, case studies and events we will be attending. I hope you will continue to enjoy reading Dig-it.

 
 

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