Tuesday, March 28, 2006

THE MOBILE VIDEO MARKET WILL GENERATE REVENUES OF OVER $500 MILLION BY 2010 AS A RESULT OF EXPANDED VIDEO OFFERINGS ON MOBILE PHONES

JupiterResearch: 41% of mobile phone users are interested in some form of video service on their mobile phone. The growing demand for video will generate $501 million in revenues by 2010, up from $62 million in 2005. JupiterResearch is a leading authority on the impact of the Internet and emerging consumer technologies on business.

Adoption of mobile video on phones has been somewhat low to date with only 2% of mobile phone users claiming a subscription. However, among mobile subscribers 17% were interested in watching live TV on their cell phones while 11% indicated interest in short video clips. This consumer interest bodes well for the mobile industry as vendors use different business models to try and tap into this consumer demand. The challenge is not interest but rather finding the correct mix of premium content and price points that is lacking in today's offerings.

Longer term adoption will depend more on business models and content offerings than on the technology or devices. Our research shows that there's strong consumer interest in consuming mobile video. Consumers are just not interested in paying large fees for mediocre content. U.S. Wireless Forecast, 2005 to 2010

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