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Mountain View, CA, United States, 2009/05/13 - Currently, a significant percent of mobile phones in North America are video enabled. Streaming video content has been delivered to mobile devices for nearly five years already.
Recently, with improvements in networks, devices, content creation, delivery and protection frameworks, mobile video services are set to become immensely popular channels for entertainment and information on the go. The emergence of peer-to-peer services such as mobile video telephony can further help drive adoption. Consumers can expect greater choices in terms of content, service providers, pricing plans and devices. Mobile advertising can also play an important role in subsidizing services and boosting adoption.
The following are findings from the analysis:
• A major challenge to both providers and consumers alike will be to find the right mix of basic and premium services that work well in the mobile environment.
• The network and presentation layers need to present a unified experience to the consumer without inundating them with multiple pricing plans and service guides.
• The greatest challenge to service providers will be to ensure subscriber awareness about mobile video services and to continue to justify the cost of basic mobile video services included within data plans.
• Focus should be placed on making sure that the best content is available without merely adding channels to the service line-up. This will go a long way in ensuring success.
From the Analyst
"High-speed networks, capable devices, and flat rate data plans drive market growth," explains Frost & Sullivan Senior Analyst Vikrant Gandhi. "3G services are available in all major cellular markets and subscribers can virtually watch unlimited basic videos when they subscribe to the high-speed wireless data plans that cost $15 to $20."
"Mobile operators are constrained to expand their content catalogues but are unable to increase the data plan rates to justify the expansion," explains Gandhi. "At a certain 'tipping point', it could be unfeasible to continue doing this without exploring other sources of revenues such as mobile advertising."
"Mobile operators could classify mobile content into various tiers and match these to their customer demographics to determine the optimum mix they should have on their decks," suggests Gandhi. "Partnerships with existing and emerging broadcast networks will also be vital to stay at par with the competition."
• For a virtual brochure of this study, please email Christina Alfaro at christina.alfaro[.]frost.com with your full name, company name, title, telephone number, company email address, company website, city, state and country.
About Frost & Sullivan
Frost & Sullivan, the Growth Partnership Company, enables clients to accelerate growth and achieve best in class positions in growth, innovation and leadership. The company's Growth Partnership Service provides the CEO and the CEO's Growth Team with disciplined research and best practice models to drive the generation, evaluation and implementation of powerful growth strategies. Frost & Sullivan leverages over 45 years of experience in partnering with Global 1000 companies, emerging businesses and the investment community from more than 35 offices on six continents.