Reliance Communications has signed up with a UK-based VAS firm, 3rd Space, to offer mobile videos to its users. 3rd Space will deliver its bouquet of mobile videos including premium ones like ‘Who wants to be a millionaire?’, sports and Bollywood songs and films. Its website curiously does not reveal clients names, nor the content database it owns. All we learn is that it also has games.
Cost Per Mobile View
3rd Space will embed advertisements in its video content, which will be the revenue model. RCOM and it will work together to rope in advertisers – they are expecting both Indian and international ones to come on board. 3rd space uses a rule called Cost per mobile view to charge them, and claims it brings higher returns than traditional PPC advertising models over the Internet, or TV and print campaigns. Cost per mobile view rides on the fact that mobile users easily share what’s on their mobile – 3rd Space believes that since the advertisement is targeted and is guaranteed to be interesting enough, the mobile user will not mind watching the video again and will share it with her friends, so the number of views will multiply.
Mobile TV Content
International VAS companies are entering the Indian space, bringing with them more options and competition. Another UK based company, ROK Entertainment Group tied up with BSNL to offer TinyTV, a mobile TV application. But unlike ROK and BSNL, 3rd Space’s partnership with RCOM is not exclusive. The company plans to provide local and international video clips to Mobile TV providers here – that would include Doordarshan, UTV, MTNL and BSNL, Apalya, and other companies in the ecosystem.