Mobile Video Worth Nearly $5 Billion by 2008

The Wireless Internet Applications (WIA) service of Strategy Analytics, the global research and consulting company, has released a new report looking at how mobile service providers are delivering video content services to mobile phones. With operators now offering video content over relatively low-speed networks, Strategy Analytics estimates that by 2008, over 150 million users worldwide will be wirelessly accessing video clips (including sports, movies and adult entertainment), generating revenues of just under US$4.7 billion.

Senior Analyst Philip Taylor notes, "Early results have shown video entertainment to be a popular service, although many question marks remain about the viability of video services, including whether mobile phone users will pay for them. 2004 will see carriers continue to look for ways in which the addressable market for services can be built quickly, and with minimum cost to themselves or their customers. This need has opened a window of opportunity to vendors such as Thin Multimedia, HelloNetworks and Oplayo, which provide low cost, proprietary solutions that carriers can use to target the mass market of mobile phones."

David Kerr, Vice President of the Strategy Analytics Global Wireless Practice further adds, "Although carrier deals are a fantastic measure of success, we believe that a more crucial determinant of these players' long-term viability will be their ability to drive distribution through vendor partnerships. RealNetworks, which has partnered with Nokia, Ericsson, Openwave and others, remains in a strong position for the longer term."

Posted to the site on 30th January 2004