While nearly one-third of
households have a video-capable mobile phone, operators are struggling to find
an audience for their mobile video services, according to Mobile
TV: Analysis & Forecast (Second Edition).
This new report by market research firm Parks Associates found a majority of
consumers with a video-capable mobile phone have never used the video features.
For example, 56% have never watched a video clip using a mobile phone. These
low usage rates are discouraging for operators hoping to boost revenues through
new TV and video services.
"Buy before you try is always a tough sell," said John
Barrett, Director of Research, Parks
Associates. "Most subscribers must pay additional money to watch video and
mobile TV services, even once they have purchased an appropriate phone. This
circumstance presents an obvious chicken-and-egg obstacle to adoption. Many
consumers are hesitant to pay for a new, unfamiliar service, but they will
remain unfamiliar with the service until they or someone they know uses it."
The report predicts operators will overcome this challenge by offering more
programming at no cost. "A free taste would go a long way in making the
consumer case for mobile TV," he said. "Mobile TV services have taken off in
and
where service is offered free of charge. In
where additional fees have been the norm, usage has been limited. It's in
everyone's interest to offer some free programming."
Mobile
TV: Analysis & Forecast (Second Edition) is a study of the global
market for mobile TV services. For more information, visit www.parksassociates.com.