Mobile video is proving a tough commodity to shift, according to American media analyst, In-Stat, which has published a new report, showing two thirds of mobile phone subscribers in the US are not ready for video services on their handsets, a number that is nearly unchanged from the previous year’s survey.
The findings, published in the company’s report,
Mobile Video Services – Perched at the Brink, show a reluctance to upgrade to the latest technology by American consumers, with just one in eight respondents indicating an interest in purchasing mobile video services.
However, David Chamberlain, senior analyst at In-Stat, explained that the medium was not beyond hope, stating: “Though mobile video does not yet appear to have widespread appeal, In-Stat believes that there is enough interest for it to generate some significant revenue for carriers in the near term.”
According to forecasts by In-Stat, the number of subscribers purchasing mobile video content in the US will increase from an around 1.1 million in 2005 to over 30 million in 2010.
The company’s research also claims that the greatest year on year growth in mobile video will come in the 2005-2006 period, as deployment of high speed networks provides wider coverage and availability of the services in the US. The growth will also be boosted, In-Stat claims, by a period of expanded marketing surrounding mobile video content.
However, it is expected that the majority of mobile video growth will come from new custom, as long term, loyal customers are the least interested in video services, according to the In-Stat.
Britain has seen a slow uptake of video services through mobile phones, due mainly to the delay in many network operators launching third-generation (3G) networks, capable of supporting the technology. However, this now looks set to change, as several companies begin to roll out both on-demand and TV-based video solutions, with Virgin Mobile the first operator to launch trials of its TV service last month (see Virgin Mobile Offers TV To Customers).
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