Mobile video to top $15 billion in worldwide revenue by 2012
July 14, 2008
Consumers are demanding more personalization and entertainment content on their mobile phones — driving mobile video subscription revenue to exceed $3.5 billion in 2008, according to research by MultiMedia Intelligence.
By 2012, the mobile video and mobile TV market will exceed $15 billion, including direct pay and advertising, the company said.
Mobile video, which relies on the mobile operator’s 3G network for delivery, has the advantage of an established network, making it the stronger of the two categories in today’s market. However, mobile TV infrastructure deployments and mobile TV handsets are rolling out aggressively, making mobile TV the dominant category in 2012.
The mobile phone is inherently an inferior entertainment platform compared with other media devices like TVs. However, the mobile handset is a superior portable communications platform. It allows for TV advertising outside the home as well as enabling new forms of advertising, including “call to action” advertising. Call to action leverages the handset’s built-in return channel to deliver advertising beyond the capabilities of the living room TV experience.
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