A&E Mobile channels go to MobiTV

A&E Television Networks has struck its first carriage deal for its made-for-mobile channels A&E Mobile and the History Channel Mobile with MobiTV.
“We believe our audiences are skewing younger, and we want to have our programming available to consumers in different platforms,” said Paul Jelinek, senior VP of digital media at AETN.
AETN will generate revenue via a combination of license fees and advertising. The media company has already begun to sell ads against its wireless Web sites, and is exploring ad models for the made-for-mobile channels.
Mobile viewing on cellphones is the next big frontier for media companies as they mine new digital opportunities. Nearly every broadcast and cable network, including AETN, has invested in broadband video; now many are getting serious about mobile.
The fledgling mobile video business is growing up quickly. Revenue for mobile video tripled in the first quarter of 2007, hitting $146 million, according to mobile research firm Telephia.
About 4% of the mobile population in the United States, or 8.4 million people, subscribe to mobile video. That’s a small number, but it’s up from less than 2% of the population in the year-ago period.
“Traditional TV carriers are having to stake a claim in the mobile video world, much the way they’ve had to stake a claim in the Internet video world,” said Cynthia Brumfield, president of research firm Emerging Media Dynamics.
A&E has built out its Web video products in the past year by launching broadband channels and Web series and by offering its shows on iTunes, Amazon Unbox, AOL Video and Xbox.
Mobile TV is the logical next step in the company’s digital strategy, Jelinek said.
Other networks also are confident that consumers will want to watch TV on the smallest screen. NBC Universal struck programming deals with MobiTV and Verizon Wireless earlier this year and added Alltel Wireless to the mix last week, part of a goal for ubiquitous wireless distribution. Discovery, MTV Networks and Turner Broadcasting have been leaders in providing mobile TV programming to multiple carriers. MTV Networks even struck a deal with Intel and Pepsi to sponsor mobile TV.
However, advertising potential in cellphone video is largely untested. Also, most carriers aren’t releasing numbers on subscribers or viewership data, making it difficult for marketers to gauge the effectiveness. However, the ad potential across mobile phones-including text banner and video ads-is great. The market for mobile advertising in the United States last year reached $421 million and should grow to $4.8 billion in 2011, according to market research firm eMarketer.
Programming on AETN’s mobile channels include History Channel series such as “Dogfights” and “Modern Marvels” and A&E shows including “Dog the Bounty Hunter” and “Criss Angel Mindfreak.” AETN also is offering text messaging, ringtones and wallpaper.
Jelinek is bullish on the mobile video business, especially now that the Apple iPhone has hit the market. “It will only help media and entertainment companies,” he said. “It’s a device that is very content-centric.”
AETN also provides content to Amp’d Mobile phones from its networks. However, Amp’d Mobile declared bankruptcy this spring and is warning that it could shut down service as early as tomorrow.
Daisy Whitney is a reporter with TV Week, a sister publication to RCR Wireless News. Both publications are owned by Crain Communications Inc.