Mobile phone users won’t pay for video services

A new JupiterResearch report finds that 11 percent of mobile phones will be video capable in 2006, but only 1 percent of mobile subscribers will pay for a subscription this year.
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A new JupiterResearch report, “Video on Cell Phones,” found that 11 percent of mobile phones would be video capable in 2006, but only 1 percent of mobile subscribers would pay for a subscription this year.

Overall, 25 percent of consumers are interested in watching video on their cell phones, with live TV topping the list of preferences.

According to research director at JupiterResearch Julie Ask, the numbers indicate that there is market potential for mobile video services, but providers need to give consumers context for watching TV on a small screen. She said that considering consumer reluctance to pay for the services, it would be best for providers to adopt a business model that combined paid and ad-supported mobile video subscriptions.