Mobile video services are important tools to recover investments in high-speed networks. The initial end-user experience and expectations have to be managed carefully at this stage to ensure a satisfactory uptake. Mobile operators will then have to play the role of 'mobile media company' and approach the planning, developing and delivery of mobile multimedia with such a mentality-something that is already being done. Small, innovative companies can actually show how these processes can be managed successfully. Other important concepts include mobile video advertising, subscriber interactivity, product bundling and others.
Frost & Sullivan finds that premium revenues from the U.S. Mobile Video Services Markets totaled $60.79 million in 2005 and estimates to reach $1516.75 million in 2010.
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The future of U.S. Mobile Video Services markets is extremely bright. With considerable resources already committed to developing this segment, stakeholders are leaving no stone unturned to ensure a satisfactory uptake. With both linear video and made-for-mobile video content available to subscribers, the overall mobile video services market expects to increase at a considerable pace.
"For example, mobile multicasting networks that are dedicated to providing data services promise high-quality mobile video content at reasonable price points," notes Frost & Sullivan Industry Analyst Vikrant Gandhi. "This combined with technology enhancements in cellular world will make more bandwidth available for next-generation wireless data services and result in greater choice for subscribers."
The challenge then is to offer all these services in an easy-to-use manner at attractive price points. Mobile subscribers should be able to access multiple services without a proportionate increase in pricing. For instance, subscribers may not like to pay $15 for wireless data plans, $10 for multicasting services and another $5 for other types of premium mobile video services(over and above their voice plan).
"Mobile multicasting services will require a subscription pricing of their own, as will the 3G services," adds Gandhi. "Any premium content offered within these two types of services will be charged extra also."
Intelligent bundling of services could provide the answer. A single subscription charge for voice, video and other data services could be offered. This will then require a close cooperation between all value-chain participants.
Frost & Sullivan, a global growth consulting company, has been partnering with clients to support the development of innovative strategies for more than 40 years. The company's industry expertise integrates growth consulting, growth partnership services, and corporate management training to identify and develop opportunities. Frost & Sullivan serves an extensive clientele that includes Global 1000 companies, emerging companies, and the investment community by providing comprehensive industry coverage that reflects a unique global perspective and combines ongoing analysis of markets, technologies, econometrics, and demographics.
U.S. Mobile Video Services Markets