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Instant Messaging Planet : Wireless IM: TV and SMS: Revving Up in the States

 
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TV and SMS: Revving Up in the States
October 23, 2002
By Bob Woods

Despite the proliferation of the Internet tools like instant messaging (IM) and wireless messaging, more traditional ways of disseminating information -- namely newspapers, magazines, television and radio -- still thrive in our wired world. In fact, the two seemingly dissimilar worlds often depend on one another to drive interest and readers/viewers/listeners/'Net surfers to the other media.

Last August, InstantMessagingPlanet focused on a recent poll by European research firm Van Dusseldorp & Partners that showed how instant messaging via SMS is now being used by major television networks in Europe to extend the popularity of TV programming, while at the same time generating some surprising revenues.

A 30-second crossword quiz from CCRTV Interactiva in Spain, for example, generated 6,000 SMS answers per day, with a peak of 43,000 on a special anniversary edition -- and SMS revenues ended up covering the network's entire cost. Similarly, a German television show, "Jede Sekunde Zdhlt" (Every Second Counts), generated 1.2 million SMS within half an hour.

Current SMS revenue models see mobile operators usually taking up to 50% of the proceeds of SMS transmissions, after taxes. In Europe, according to Van Dusseldorp & Partners, the split for a Premium Rate SMS Message of 1 euro gives the mobile operator .40 euros, the broadcaster/production company .25 euros and the solutions provider .15 euros. The remaining .20 euros covers taxes.

Using an SMS-broadcasting tie-in is a win-win for both sides -- for the mobile operator, SMS revenues ensure that a network is used to capacity; for broadcasters, the SMS model draws revenue without adding additional costs, because mobile operators handle the billing.

The U.S. is behind its European friends in this regard. But as with other wireless-related topics, Americans are clearly catching up.

Last summer, Cingular, Fox Sports and Proteus teamed up on a promotion surrounding three of NASCAR's recent Winston Cup races -- the Sirius Satellite Radio 400, the Dodge/Save Mart 350 and the Pepsi 400.

Any NASCAR fan that had Web access could have gone to the Fox Sports Web site to become "Virtual Crew Chiefs" to voice their opinions on each of the races. Results of the polls were then broadcast live a few minutes later. Fox has used this kind of capabilities during other sporting events.

Cingular subscribers, though, could send an SMS message to "151" to have the question sent to them. The users could then answer the question directly over their wireless phones.

"Our theory going into this was that consumers would prefer the mobile experience because it's quicker and you can stay seated in front of the TV -- not everyone has their computer in the same room as the TV," said Patrick McQuown, Proteus president and co-founder. "Plus, if additional people are watching or the viewer is in public, say a bar, they can participate."

Cingular paid Washington, D.C.-based Proteus to develop the app, McQuown said. Because Cingular is also involved with NASCAR, it decided to make the SMS app exclusive to the three NASCAR races.

Proteus was expecting "big numbers," McQuown said, even though Cingular holds about 20% of the mobile market and not all of its customers have two-way SMS-enabled phones. "Even with those variables, we still got 40% of all votes cast" for the Virtual Crew Chief feature, he said -- "much, much higher than we thought." This means that six of every 10 votes were placed via the Fox Sports Web site.

The number of wireless voters increased from race to race as well. During the third race (Pepsi 400) on July 6th, 44% of voters responded via their Cingular Wireless phone versus Internet-enabled computers.

Proteus has already worked with Fox to bring SMS-based interactivity to last summer's World Cup, as well as to last February's Super Bowl broadcast. And Proteus is talking with broadcasters and advertisers about SMS-enabling other events, like game shows and other sporting events.

Another television-related effort used SMS to drive viewers. For ABC's now-canceled Push, Nevada, wireless phone and PDA users will receive messages from a character in the show to draw them into the groundbreaking series, according to Multichannel News. The series focused on an IRS agent who traveled to a remote desert town in search of stolen cash.

Each episode containted puzzles to follow and solve. A Push, Nevada game also followed along with the show, and episodes contained clues to help solve the game. At the end of the show's run -- the finale airs tomorrow (Thursday, Oct. 24) -- the clues will add up to a solution, and the winning audience member will be able to claim the missing money.

It is hard to say if these or any of the other U.S. SMS/TV crossover efforts are bringing anyone real revenues. At least the two industries are gaining valuable experience working with one another as they go forward with new initiatives.

Bob Woods is the managing editor of InstantMessagingPlanet.

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