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By Donna Tam, CORRESPONDENT
Emeryville's MobiTV announced Wednesday that it has received $70 million in funding, which will be used to expand its mobile television service across the globe.
The Series C financing, led by Oak Investment Partnership, may reflect the growing interest in being able to watch TV content on the go. Companies like MobiTV provide services that allow users to watch TV programing broadcasted through wireless services and viewed on portable devices such as cell phones or laptops.
MobiTV is trying to keep up with the demand of users, said Jason Taylor, MobiTV's global director of corporate communications. The privately held company, founded in 1999, is constantly trying to add new features and content for its users, he said.
"We're always working on the next stage in the evolution, since we're the pioneers in the category," Taylor said.
Despite the attention mobile TV is receiving, there is no way to tell if there is a real demand for the service, said Rob Enderle, principal analyst for the Enderle Group.
"Manufacturers and cellular services have absolutely convinced people that they want to watch TV on their phones," he said. But mobile TV still has some obstacles.
Price is a concern, Enderle said. Users probably will not want to pay per program and might be more responsive to a flat-rate service charge.
Last year, MobiTV launched its additional radio service with Cingular, which also offers a mobile TV service. Cingular charges a $6.99 flat fee for the radio service and $19.99 a month for its unlimited media downloading package, which includes TV service.
Programing length is also an issue. An entire TV show or full- length movie is probably not ideal for mobile users because of battery life restrictions. Short-length programing, such as a sports event, will be more successful, Enderle said.
"More of a global expansion would be beneficial," Enderle said.
Mobile TV services will do well in areas where people are in close quarters and have the time to watch programing.
"If they are in buses, in subways or trains, they are more likely to use it," Enderle said. This kind of commuting explains why mobile TV services work so well overseas.
MobiTV does plan to expand services in its international markets, said Taylor. Currently, it provides services in the United States, Canada, Latin American, United Kingdom and Japan.
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