The
global number of users paying for mobile video services will grow
five-fold from 2008 to 2014,surpassing 534 million, with a substantial
proportion of mobile net additions coming from emerging markets,
according to the latest report by Pyramid Research the
telecom research arm of the Light Reading Communications Network
Video is increasingly making its way into the mobile space across
developed and emerging markets. “Pyramid Research estimates that the
global number of users paying for mobile video services directly
delivered to their handsets will grow five-fold from 2008 to 2014,
surpassing 534 million at the end of the period,” says Derek Medlin,
senior analyst at Pyramid Research and author of the report. “This is
equivalent to 8.5 percent of all mobile subscriptions, up from the
current 2.5 percent level,” he adds.
“The availability of improved devices and networks are contributing
to a higher level of adoption and spending on mobile video services,”
says Medlin. “Pyramid Research believes that a substantial proportion
of mobile net additions in the next five years will come from emerging
markets, especially in Asia/Pacific, and will drive a 37 percent growth
in total mobile subscriptions from 2009 to 2014,” he explains. Markets
such as Japan, Hong Kong, and South Korea already lead in terms of
mobile video penetration of subscriptions, but Pyramid also expects
important uptake in India in the next five years.
“Looking ahead, Asia/Pacific will remain in the top spot, attaining
more than 281 million subscriptions by 2014, although we expect Latin
America to grow at the fastest pace, increasing at a CAGR of 39 percent
from 2009 to 2014,” Medlin says. “Because of intense competition in the
video market, operators have to be creative when launching new
services; to meet surging demand for video, mobile players are making
network upgrades, reducing data charges, improving content, and
offering more advanced handsets,” he adds.
In Mobile Video Services: A Five-Year Global Market Forecast,
Pyramid Research analyzes the adoption and revenue opportunity for
mobile video services, which include paid video clips, music videos, TV
episodes, TV programming, and movies. In examining mobile video
business models, the 82-page report focuses on customer-facing
commercial offers and the provisioning, pricing, and content strategies
of mobile operators. It forecasts uptake and revenue through 2014, both
globally and by region. Developments and opportunities related to 3G
and 4G networks, mobile TV broadcasting, downloading, streaming,
side-loading, content, data usage, smartphones, and other devices are
also discussed in the report. It examines market environments,
regulatory influences, and operator strategies through seven country
case studies: Brazil, Chile, China, India, Italy, and Japan.