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Mobile TV stays shortform

31 August 2006

According to a new report from In-Stat, the market for longform mobile/portable video content (ie video content of greater than 30 minutes) is currently in an experimental phase, and will likely remain at this stage for at least two years. By 2008, however, the industry will begin to gain traction and demonstrate its long-term potential.

“The greatest potential for this market rests with its ability to complement the existing video industry. For example, there will be over 50 million portable media players in use worldwide by 2008,” says Michael Inouye, In-Stat analyst. “The portable/mobile long form video market will not likely cannibalise sales from the DVD and other traditional markets, but rather, supplement top-line growth.”

Recent research by In-Stat found the following: it is still not clear if users will prefer an all-purpose multimedia cellular phone or separate voice and multimedia devices; mobile video subscribers stand to represent over 10% of US wireless subscribers by 2009; and roughly one out of eight respondents in an In-Stat survey of mobile users expressed interest in mobile video for the cellular market.

The research, ‘The ‘Audience of One’: Long Form Mobile and Portable Content Slowly Emerges’, covers the worldwide market for mobile and portable video. It includes four-year forecasts of worldwide revenue per portable media player by region and worldwide total portable media player and PSP revenue by region. Extensive analysis of market drivers and challenges is provided.

In related research, In-Stat found that several factors point to rapidly increasing consumer acceptance of mobile video and music multimedia services from wireless carriers. Interest in mobile video has inched up during the past three years but streaming music still leads the way. Streaming music offers many marketing benefits because it is most like familiar and successful mobile consumer services. One plus for carriers is that streaming is not subject to the same Digital Rights Management issues involved with music file sharing.

The research, ‘In-Sights: Will Multimedia Phones Threaten Portable Music Players?’, covers the worldwide market for mobile multimedia consumer services.

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