MobiTV now faces a dilemma: CMO Ray DeRenzo explained the company, which has a number of popular mobile TV streaming applications, needs permission from its partners to sell the same 35 channels that it offers on cellphones today on tablets, too. But currently, the content owners are demanding a different rate structure for the tablet because it’s not clear whether it is a mobile device. MobiTV today charges $10 a month on a cellphone but that could soar to $30 a month on a tablet. “As a distributor, we have to license content, and the value of the content is set by the rights’ holders and content producers. [The tablet is] being priced as a home TV equivalent,” he said. “We have to make sure we can make a product that’s compelling to end users in terms of programming and price.” At the higher rate structure, he doesn’t believe there’s a market.
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