Mobile video to generate 15% of total data revenues by 2009

May 24, 2004

With the promise of greater bandwidth on 3G networks, rapid advances in compression technologies, and new multimedia handset capabilities, the stars are beginning to align for mobile video services in the US. High-tech market research firm, In-Stat/MDR reports that, with a number of limited deployments already underway in the US, market launches in this space will accelerate in late 2004 and throughout 2005. By 2009, mobile video services are expected to generate $5.4 billion in annual revenues.

A recent, end-user survey performed by In-Stat/MDR found that 13.2% of US wireless subscribers are extremely or very interested in purchasing video services for their wireless phones. "While still a relatively small niche of the market, this figure is significant in that it represents the "natural demand" for mobile video services, prior to any large-scale carrier deployments or market messaging," says Clint Wheelock, Director of In-Stat/MDR's Wireless Research Group. "Moreover, interest in mobile video is higher than for all other prospective mobile multimedia services covered in this survey, including gaming and music services."

In-Stat/MDR also reports that:

-- By 2009, 22.3 million Americans will be viewers of mobile video content, and 31.1 million will use video messaging services.

-- Sprint PCS subscribers, who typically exhibit more early adopter characteristics than customers of other wireless carriers, were the most likely, among those surveyed, to be interested in mobile video services.

-- By 2009, mobile video services will account for approximately 14.9% of total wireless data revenues.

The report, Mobile Video Services in the US, 2004-2009, includes survey results and analysis from In-Stat/MDR's Consumer Mobility Study, including level of interest in mobile video services, as well as user preferences for specific content, delivery mechanisms, and video applications. In addition to demographic and behavioral profiles of the market segments most interested in mobile video, the report also provides an outline of In-Stat/MDR's Mobile Video Adoption Framework, including discussion of technology enablers, market trends, carrier business models, and consumer adoption patterns. In addition, an assessment of the supply-side market landscape, including profiles of technology vendors, as well as video content providers and application developers, is also included. US mobile video forecasts, reflecting significant growth in subscribers and revenue during the five-year period are also provided.