Breaking Out: VCAST Mobile TV Product Launch

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Category: B2C

Type: Cross-Sell

Channel: Direct Mail

Industry: Technology

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Challenge:

 

In early 2007 Verizon Wireless partnered with Qualcomm’s MediaFLO to launch VCAST Mobile TV. The technology worked with select compatible handsets that “predated” the Android OS and iOS era. Unlike earlier versions of Verizon’s 3G video streaming which had unacceptable buffering wait times, VCAST utilized a portion of the UHF spectrum for a truly live mobile TV experience. Programming consisted of best the of TV programming from CBS, Comedy Central, ESPN, FOX, MTV, NBC and Nickelodeon. Time block schedules were consistent with cable and satellite services.

 

Up to this point, mobile devices had only been used to watch short clips such as music videos and news briefs, but this was the first technology that allowed viewers to watch full-length live TV shows. We needed to influence consumers to want to watch TV on their mobile device away from home (such as work breaks, commuting, business travel, etc.) — and be willing to pay $15 to $25 monthly for this benefit.

 

Solution:

 

For acquisition, we developed a bold concept based on the Fox Network’s smash hit show Prison Break. We chose the show as it was very popular with the 18-34 demographic which corresponded to the target audience for VCAST. The show had recently won a Golden Globe Award and was acclaimed by the New York Times in 2005 as the most original new series on TV.

 

We developed a 9 x 12 letter package featured an image of Prison Break with a perforated window featuring the headline “Break Free Today!” Upon opening the window, a 30-day free offer was displayed. The personalized letter opened to a full spread featuring images from leading TV shows: The Hills, [24], Heroes, CSI: Miami, Bones and Survivor as well as the 30-day offer, two different plan options and two new handsets that featured VCAST capability.

 

For retention cross-sell, we sent a direct mail piece (Verizon had limited email addresses at the time) to customers who had already had VCAST capable phones. The offer feature a 30-day free trial and a $20 gift card for subscribing to the service. 

 

Result:

 

While VCAST had a very limited audience, we were able to exceed sign-up goals for the initial launch. However, long-term growth was limited due to dependence on phone compatibility as well as the perceived value (good for sports, but not so much for most shows that could easily be recorded on a DVR). With the growth of iOS and Android OS smartphones, cable and satellite subscribers were able to gain access to subscriber-based apps that allowed for on-demand mobile viewing. Pricing for this competing technology started at $10 a month and later was included as a free benefit. As a result, Qualcomm discontinued MediaFlo in 2010 and VCAST ended.