Wide-ranging Mobile Video Services and Content Attract More Users in the USA

Compelling content, multiple application types, social networking, mobile advertising and mobile broadcasting services are some of the developments that influence the mobile video services market. New analysis from Frost & Sullivan finds that premium revenues from mobile video content services estimates to reach $1.62 billion in 2011.

Interestingly, the USA is one of the few regions where competing multicasting technologies can be deployed. While Qualcomm's MediaFLO service is the USA's sole commercial mobile video broadcasting service presently, mobile operators will partner with broadcasting service providers to surmount spectrum and network limitations.

As Sprint-Nextel offers one of the largest content catalog over CDMA2000 1xEVDO, other operators such as AT&T and Helio provide various content categories to set themselves apart. Participants that can improve end-user experience through high-quality mobile video broadcasting services will experience significant success.

"In the meantime, penetration of capable handsets is increasing at a rapid pace, and it is only a matter of time before consumers adopt some form of mobile video service," says Frost & Sullivan Industry Analyst Vikrant Gandhi. "The challenge then is to persuade the subscribers to try these services first - mobile operators are hopeful that the enhanced user experience will result in many subscribers continuing to use mobile video."

A short trial period can significantly drive the uptake of mobile video services. Operators need to initiate aggressive awareness campaigns to communicate the value of mobile video.

Competitors will have to deal with the issues of high subscription charges. While the regular subscriptions are normally charged at $15 per month, premium channels cost extra, and these charges can easily push the monthly phone bills up by $20.

"Participants' present focus is to offer innovative content and persuade more content providers to join the mobile video market," observes Gandhi. "Both unicast and broadcast content will serve important roles within the ecosystem, and operators are likely to rely on their own networks for differentiation while common services continue being offered over broadcasting networks."

As linear video and made-for-mobile video content are available to subscribers, the overall mobile video services market expects to expand rapidly. Leading U.S. off-deck mobile content providers have made available downloadable short mobile video clips for viewing on the handset. Other popular services in off-deck include mobile social networking services such as enabling the upload of videos to users' online profiles.

Posted to the site on 28th November 2007

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