By Adam McIwaine
EU Editor
Critics of mobile video services and cell phone-based mobile media are quick to point out that initial demand for these services and a subscriber’s willingness to pay for them is less than strong.
However, wireless service providers seem to be making money from these offerings, and forecasts for the future of mobile media are pink, if not rosy.
Service provider revenue from mobile video services increased 317% to almost $200 million worldwide from 2005 to 2006, says market researcher Infonetics Research in a new report, entitled "Mobile Video Devices, Services, and Subscribers." And those figures are expected to triple this year, which means there is profit in mobile pictures.
The report also points out an increase in the number of worldwide mobile video subscribers by more than 300% between 2005 and 2006, and forecasts 46 million mobile-watching mavens by 2010. Pushing acceptance and demand are such things as new and more powerful handsets, and the continued migration to all-digital networks (and subsequent death of analog).
Other findings detailed in the report:
- Competition among service providers will keep subscription prices lower in the long term, but revenue will be bolstered by a spike in on-demand mobile viewing (especially related to the 2008 Summer Olympics in Beijing;
- Asia Pacific will be the regional stronghold of mobile video subscribers through at least 2010, with 57% of the world total in 2006, followed by European countries (31%) and North America (10%);
- The number of mobile video handsets sold worldwide nearly doubled from 2005 to 2006 (including video-capable handsets not necessarily tied to a specific mobile video service)
Okay, the critics may point to the relatively low percentage figures in North America to validate their claim of a lukewarm reception for mobile media. But, this may be because people are being charged right out of the gate for these services in NA, while Japan and Asian based companies have just about given them away for nothing.
We think the demand in North America will skyrocket as the content offerings improve and specific communities of users build affinities for particular content types. This sends a pretty clear message to those involved in content creation and distribution today to get their acts together and stop slicing and dicing existing television, film and Internet content and start making some fresh made for mobile material.
You can get more on the Infonetics report at their Web site (www.infonetics.com), although we’d also love to hear your thoughts via this Web log.
However, wireless service providers seem to be making money from these offerings, and forecasts for the future of mobile media are pink, if not rosy.
Service provider revenue from mobile video services increased 317% to almost $200 million worldwide from 2005 to 2006, says market researcher Infonetics Research in a new report, entitled "Mobile Video Devices, Services, and Subscribers." And those figures are expected to triple this year, which means there is profit in mobile pictures.
The report also points out an increase in the number of worldwide mobile video subscribers by more than 300% between 2005 and 2006, and forecasts 46 million mobile-watching mavens by 2010. Pushing acceptance and demand are such things as new and more powerful handsets, and the continued migration to all-digital networks (and subsequent death of analog).
Other findings detailed in the report:
- Competition among service providers will keep subscription prices lower in the long term, but revenue will be bolstered by a spike in on-demand mobile viewing (especially related to the 2008 Summer Olympics in Beijing;
- Asia Pacific will be the regional stronghold of mobile video subscribers through at least 2010, with 57% of the world total in 2006, followed by European countries (31%) and North America (10%);
- The number of mobile video handsets sold worldwide nearly doubled from 2005 to 2006 (including video-capable handsets not necessarily tied to a specific mobile video service)
Okay, the critics may point to the relatively low percentage figures in North America to validate their claim of a lukewarm reception for mobile media. But, this may be because people are being charged right out of the gate for these services in NA, while Japan and Asian based companies have just about given them away for nothing.
We think the demand in North America will skyrocket as the content offerings improve and specific communities of users build affinities for particular content types. This sends a pretty clear message to those involved in content creation and distribution today to get their acts together and stop slicing and dicing existing television, film and Internet content and start making some fresh made for mobile material.
You can get more on the Infonetics report at their Web site (www.infonetics.com), although we’d also love to hear your thoughts via this Web log.
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