Communications market research firm Infonetics Research reported that worldwide mobile video phone sales neared $99 billion in 2007 and are expected to grow
strongly over the next 5 years, despite the challenge service providers
face in making mobile video services profitable.
The report
shows that the number of mobile video subscribers topped 10 million
worldwide in 2007, and is expected to nearly triple by the end of 2008,
with explosive growth continuing through at least 2011.
Other report highlights:
- Worldwide
service provider revenue from mobile video services nearly tripled in
2007 and is expected to nearly triple again in 2008 - Advertising
will play a major short- and long-term role in ensuring the
profitability of mobile video services, and mobile operators will be
working throughout 2008 with advertisers and media buying agencies to
sell their mobile video ad avails, which should become more prevalent
in mid-2009 - As more mobile devices emulate the
look and feel of the iPhone, much like Samsung’s Instinct and LG’s VU,
and become more widely available, subscribers will be more likely to
subscribe to, and stick with, a mobile video service - Vendors
of video processing and headend equipment, such as Motorola, Envivio,
and Harmonic, are lining up with mobile network equipment suppliers to
help speed the rollout of mobile video networks; partnerships and
acquisitions along these lines will continue as the mobile video
opportunity becomes clearer around the world
Infonetics’ report, Mobile Video Phones, Services, and Subscribers,
provides worldwide and regional market size and forecasts for mobile
video service revenue, mobile video subscribers (3G/MBMS, DVB-H, FLO,
ISDB-T, S/T-DMB, and DAB), and mobile video phones (3G/MBMS, DVB-H,
FLO, ISDB-T, S/T-DMB, DAB, CMMB).
“The amount of money it takes to manufacture mobile video phones with
high quality screens and extended battery life will continue to drop
considerably over the next few years, and as that happens, service
providers will want to make sure they have the phones with the most
revenue-generating potential in the hands of their subscribers. We
expect the number of mobile video phones to quadruple between 2007 and
2011,” said Jeff Heynen, directing analyst for IPTV at Infonetics.