A new study by Juniper Research predicts that in two years, revenues from streaming and download services on mobile and tablet devices will reach $9.5 billion, up from $4.5 billion this year. This growth will be spurred by the maturation of the market for streaming subscription services and pay-per-title content, which will see new business models develop for smartphone and tablet users, Juniper Research said.
Other conclusions in the new report, Mobile & Tablet TV & Video: Content, Broadcast & OTT Strategies 2013-2017, proclaim the top three markets for mobile TV and video services, in terms of revenue, will continue to be North America, Western Europe and the Far East and China, whose revenue share combined will represent more than 80 percent of the global total.
The new report also details how video subscription providers have been able to realize large revenues to date and their strategies for growth over the next five years.
Report author Sian Rowlands said that in order to be successful in the future, service providers must address customer preferences for anytime, anywhere viewing by leveraging “cloud technology, allowing consumers to resume playback on different devices, and enabling offline viewing.”
Juniper said that as streaming services increase in popularity on mobile devices, mobile operators would be challenged to keep up.
“This group will face continued pressure on their network capacity whilst at the same time striving to attract revenue from video and TV usage,” the report states.
Some operators can leverage this opportunity through Wi-Fi offload and the services that they already offer by bundling telephone, Internet and TV packages under a single bill.
“Other operators, however, still need to innovate and adjust their business models to the burgeoning OTT opportunity,” the report states.
Juniper said Latin America would become an important market to watch for mobile TV, given that the World Cup and Olympics will be held there in 2014 and 2016.
A new Mobile TV & Video ~ Cutting the Cord whitepaper is also available to download from the Juniper website, along with more details of the full report.
Juniper Research provides research and analytical services to the global hi-tech communications sector, providing consultancy, analyst reports and industry commentary.