Startup takes aim at cable's content 'stranglehold' with white-label mobile TV service

Following a business model that eschews subscription fees and encourages "celebs and organizations" to sell ad space and their own products directly on a mobile screen, Private Label Mobile TV "hopes to further loosen the stranglehold of cable television providers."

In a press release, the Miami-based startup said its business model is to directly connect a growing "zero TV" audience with content.

"Those who are frustrated with rising subscription costs for entertainment may flock to a more cost-effective mobile TV option," the company said in a news release. "Private Label Mobile TV allows users to attend virtual events or see live concerts via pay-per-view from anywhere; content creators enjoy the freedom that comes with ownership capabilities and control of everything on their channel."

The company's position is a bit contradictory. While its boilerplate states that Private Label Mobile TV services are "able to compete with television channels similar to linear television such as Comcast (Nasdaq: CMCSA), DirecTV (Nasdaq: DTV) and more," its press release seems to welcome those same companies into a relationship.

That's because the company maintains an open policy about who can lease its service, said company representative Gabrielle Moise in an e-mail to FierceCable.

"We are offering this service to others so they can lease their own Private Label Mobile TV service, she wrote. "Whether it is a company or a current up-and-running television network, we can provide our services to them to stream for 24-hours-a-day worldwide … movies, television shows, live events … concerts and more."

The opportunity, she said, will be available on mobile Internet devices, including smartphones, tablets, laptops and pcs.

"No other cable network has these features, not Time Warner Cable (NYSE: TWC), Cablevision (NYSE: CVC), Dish Network (Nasdaq: DISH) or any other local cable network," she wrote. "Users just need to download and install our app and will have full access to all channels playing in real time, just like regular television."

The company's income will come from content providers seeking access to target audiences who lease the service and capabilities from Private Label Mobile TV Service.

"It is up to them on whether they will provide their network subscriptions for free or for a fee," Moise wrote.

The free model might work, she suggested, if lessees sell advertising or time slot space.

"There are many ways to make money off of owning your own Private Label Mobile Television Network," she wrote, comparing it to "owning your own Comcast or AT&T (NYSE: T) cable network."

While present plans are to use a mobile device as the conduit, future plans will include the option of tethering a Web-connected device to a television  without the cost of cable, the press release said. Additionally, Moise wrote, the company is working on a way to let viewers purchase products directly from advertisements shown in the network.

Updated March 26 with comments from Private Label Mobile TV spokesperson.

For more:
- see this press release

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