The CRTC issued a Decision on mobile TV that should make the folks at XM and Sirius nervous.
The Decision exempts mobile TV from regulation on the basis that it falls under the New Media exemption. It is an interesting finding, considering that it appears to hinge on the delivery of the content over an IP network.
Part of the Wireless Association consultant study relied upon by the CRTC stated that the video and audio quality of the service is different from broadcast TV because of the limitations of the wireless handset. Intriguing, since so many of the new wireless handsets feature high fidelity MP3 audio. I’m not convinced that cellular audio is anything less than first rate.
So, here is the issue: Why wouldn’t the wireless carriers start a subscription radio service right away? We know that people are buying Sirius and XM subscriptions for $15 per month – that sounds like an attractive piece of ARPU enhancement for the wireless industry. While we have no idea how much people are willing to spend on a 2-inch TV picture, we know that people are lining up to buy subscription radio (at least according to XM’s latest press release issued this morning).
If I were an executive with Sirius or XM, I’d be concerned about this new unregulated source of competition. After all, isn’t radio just TV without the picture?