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50% of US Subscribers to Mobile Phone Video Services Never Use Them

50% of US Subscribers to Mobile Phone Video Services Never Use Them

50% of people who subscribe to mobile phone video services in the US, and 30% of video iPod owners, never use their devices for watching video, according to a new study from Knowledge Networks called How People Use Mobile Video.

The study also showed that 88% of people who download mobile video would watch an ad in exchange for free content, and laptop computers are the most commonly used devices among those who view mobile video.

The new report is part of the ongoing Home Technology Monitor which combines annual reports on key devices and services.

A recent forecast by In-Stat said that mobile TV broadcast subscribers worldwide will reach 102 million by the end of 2010, a jump from 3.4 million in 2006 (see Mobile TV To Reach 102 Million Subscribers By 2010).

The Knowledge Networks study revealed that consumers are not usually purchasing video mobile phones and video iPods for their mobile video capabilities. Knowledge Networks says that, using the data in the study, it can project the proportion of mobile phone owners or video iPod owners who watch video on their devices to be only 3% of the 13-54 broadband population.

The study also shows that, even among those users who subscribe to one of the three major video service providers and therefore pay extra to have mobile video content available, only 50% actually use the service.

In contrast, says Knowledge Networks, the proportion of laptop video users projected to the 13-54 broadband population is closer to 17%. The study found that out of those who use laptops for downloading or streaming video that 77% watch streaming video and 61% have downloaded video for later viewing.

23% of laptop video users who have downloaded video for later viewing have paid for the content, while 88% of those who download mobile video would watch an advertisement in exchange for free content. In addition, 89% of those who watch live streaming video would watch an ad in exchange for free content.

Perhaps the reason for the unexpectedly low levels of video usage can be explained by a recent study from Amberlight, which said that penetration is being hindered by technological difficulties, with poorly designed features, high costs and low standard visibility slowing consumer uptake (see Mobile TV Up-Take Slowed By Technological Faults).

David Tice, vice president of client service at Knowledge Networks/SRI and director of The Home Technology Monitor, said: “The buzz in mobile video may be around iPods and video cell phones, but laptops are actually trumping those super-small screens when it comes to real-world usage today.

“Even among those who have gone out of their way to obtain mobile video service, use of this capability is still not prevalent. This suggests that either consumers do not really have the time for viewing mobile video, or comfort with the technology is still embryonic among early adopters, not to mention mainstreamers.”

A recent study from Quaestor said that 87% of children would like to watch television on their mobile phones (see Almost 90% of Children Want Mobile TV).

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