The fusion of communications and broadcasting is about to occur in the world of mobile telephones. In March 2006, terrestrial digital broadcasting (one-segment broadcasting) for mobile devices (including mobile phones) will begin. This service will allow users to watch simultaneous broadcasts of TV programs transmitted by terrestrial digital broadcasting networks. It will also tie up with data broadcasting and contents services using mobile phone communications services.

What new developments in mobile phones will result from the fusion between communications and broadcasting? To answer this intriguing question, we interviewed Yuka Nariai, chief manager of the TBS Television’s Mobile Phone & Internet Center (Contents Business Section, Main Operational Division). We also talked with Hiroshi Yamamoto, president of TeMo Inc., a company established jointly by Tokyo’s five key television networks and Index Corp.

In our discussions, we gained some insight into the implications of the growing strength of the complementary relationship between mobile phones and television. It appears that one-segment broadcasting, freed from the restrictions on users’ viewing locations, may affect the basic nature of traditional television, even as it changes the design of handsets.

As consumers begin to watch TV programs sent to their cell phones, opportunities for new types and styles of contents may change the broadcast industry in fundamental ways.

Yuka Nariai
Chief Manager
Mobile Phone & Internet Center
Contents Business Section, Main Operational Division
TBS Television Corp.

Edge: With attention now focused on one-segment broadcasting in mobile phones, it seems that there is quite a difference between traditional fixed television and the kind of television loaded in mobile phones, as far as the style of viewing and the motivation for viewing are concerned. What is your perception of that?

Nariai: The ability to have television available on mobile phones, through one-segment broadcasting by terrestrial digital services, releases the user from location-related limitations. For that reason, it may serve as a great motivation for people, particularly younger ones, to watch more television. The opportunities to view programs will be greatly enhanced, such as during commutes to work or school on public transportation, as well as during waits for appointments, etc. Also, I believe it is a highly effective way for people to get particular pieces of information from information-related TV programs about places or situations in which they currently find themselves.

Edge: Mobile-device TV really is a tool, then — one that complements and rounds out traditional fixed television, isn’t it?

Nariai: In the sense of getting people to pay more attention to TV contents, mobile phones and traditional televisions find themselves in a complementary relationship. For instance, the games of the 2006 World Cup will be broadcast in Japan during the nighttime, and some people may not be able to watch them during that time. We envisage the kind of applications that will allow them to use their mobile phones to watch sports news during their morning commutes, with video clips of highlight scenes downloadable through wireless links.

Edge: That takes advantage of the unique characteristics of both television and mobile phones, with TV programs being provided and overall viewing being promoted.

Nariai: That’s right. Terrestrial digital broadcasting is available widely, and traditional fixed television has the powerful advantage of being able to provide beautiful video images. We are working hard to improve the quality of our program contents.

Viewing TV programs through one-segment broadcasting is not an end in itself. Instead, it provides people who have mobile phones with greater motivation to watch traditional television programs upon their return home.

Edge: That’s because there are certain problems with one-segment reception on mobile phones, such as the lack of full expressiveness and limited battery duration. It’s more practical to think that the addition of one-segment broadcasting to the viewing style of users — formerly limited to just traditional television — will enhance their means of access to contents.

Nariai: That's not just happening at TBS Television. One-segment broadcasting is necessary in order to expand viewership, especially among audiences of young people.

Edge: Recently, digital appliances and devices are enjoying widespread adoption in the household, and there is a project in the near future to institute server-based broadcasting. The environment surrounding fixed television is thus evolving. Using that as an entry door, and establishing links with one-segment broadcasting on mobile phones, we can probably look forward to further synergetic benefits. However, one issue remains: Can programs designed for traditional fixed television actually match the usage environment of mobile phones? Do you have any special measures in mind to encourage TV viewing on mobile phones?

Nariai: For the time being, one-segment broadcasting will be simulcast, meaning that there won’t be any special kinds of programs designed specifically for mobile-phone viewing. However, after one-segment broadcasting begins, the removal of time-based limitations on the audience makeup will trigger changes in program production itself, I think.

Edge: What specific changes in TV contents do you foresee?

Nariai: For example, the contents of morning shows in the 8 o’clock and 9 o’clock time slots are currently aimed at stay-at-home housewives. However, with the advent of one-segment broadcasting viewable on mobile phones, the audience for such programs will expand. For example, it is believed that contents will also target businesspeople commuting back and forth to work and students going to and from school.

Edge: That means that the spread of one-segment broadcasting and the acceptance of the new viewing style will result in feedback on the production of program contents in the framework of traditional television.

Nariai: I think that such changes will be inevitable. Also, in the future, once extra new bandwidth is assigned to mobile broadcasting, channels may even be launched that are devoted exclusively to mobile-phone broadcasting. Music is one field that seems to work well in the mobile-phone environment, so perhaps that will lend itself to the emergence of special channels.

Edge: Although fees can be charged to watch special channels, isn’t it true that one-segment broadcasting will follow along the lines of the commercial-based model of traditional television, as long as simulcasts remain the mainstream format?

Nariai: We are now in the stage of carefully preparing a commercial-based model for one-segment broadcasting. We would like to insert commercials into those broadcasts in the same way we now put them into programs for home TVs. However, banner advertising and advertising articles using telecommunications involve a different set of rights relationships from those existing traditionally, so adjustments will have to be made there. We must also consider a system whereby the contents of video-based advertising and banner advertisements do not conflict with each other.

Edge: The use of mobile-phone sites will permit forays into contents marketing and product sales, won’t it?

Nariai: There is a lot of potential in product sales. In Japan, the amount of product sales linked to television programs through the use of mobile-phone sites already exceeds that of goods purchased through personal-computer sites. Program-related product marketing services are growing 300-400% on a year-on-year basis.

Edge: That's really tremendous growth. Users seem to approach mobile-phone shopping differently from the way they approach traditional television shopping.

Nariai: That’s probably because there is less psychological burden when all you have to do is to make a few clicks on the keypad. Maybe younger people find it easier to accept that method of buying. They have less resistance to using credit cards over the Internet. In the near future, we expect that people will take greater advantage of electronic-money payments over "FeliCa" mobile phones, using the "Wallet Phone" system and the like.

Edge: The advantage of using electronic money with FeliCa-equipped mobile phones such as Edy is that it is prepaid, so even people without credit cards can use it. If that system can be applied to mass-market TV programs, the treatment and handling of non-credit cardholders will become even more important.

Nariai: Another good thing about electronic money is that it can be used in small amounts. If people freely use e-money for purchases of 1,000 yen or so, it can be used in the marketing of goods as well. And that can grow into quite a huge business! (laughter) Considering the influence of television, then, product sales services allow linkups with regular programs as well, and not just with shopping programs.

Edge: With the advent of one-segment broadcasting, what improvements do you hope to see in mobile phone devices?

Nariai: First of all, something has to be done about battery duration. I’d be happy to see any extension in battery time, since that increases the length of time that programs can be viewed. Also, although the mobile phone screen is going to be small no matter what, I would still like to see the development of an LED screen that permits clearer viewing. Furthermore, given that it is television after all, I believe it's necessary to create features that let people hear the sound properly.

We at TBS, as a broadcasting company, will strive to provide excellent contents for one-segment broadcasting, so we want to see the manufacture of mobile phones that can be enjoyed as convenient entertainment environments.

Edge: Thank you very much for your time today.