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Report: Mobile TV, Video Revenue to Top $15B by 2012

9 Jul, 2008 By: Erik Gruenwedel

With portability apparently trumping screen size, consumer demand for TV and video content on their mobile phones will generate $3.8 billion in global revenue this year, according to a new report from MultiMedia Intelligence.

The Scottsdale, Ariz.-based research company said global revenue, including pay-per-view and ad-supported content, would top $15 billion by 2012.

“The mobile phone is inherently an inferior entertainment platform compared to other media devices like TVs,” said Frank Dickson, chief research officer with MultiMedia. “However, the mobile handset is inherently a superior portable communication platform.”

Dickson said the mobile phone allows for TV advertising outside the home, including “call to action” marketing.

Typically, direct response advertising entices consumers to respond quickly through dating, order incentives and limited pricing guidelines.

Dickson said the mobile phone's inherent return channel capability helps facilitate consumer interaction with marketers beyond the living room TV experience.

“You could get a text message about a product or be streamed a different video,” he said. “The handset is inherently a two-way communications device.”

In addition, MultiMedia said mobile TV ARPU (average revenue per user) is higher in North America and Europe than Asia due to a dearth of digital free-to-air alternatives.

Indeed, Asia has the largest number of mobile TV subscribers and will account for two-thirds of all mobile TV subscribers by 2012, according to MultiMedia.

Asia includes China, South Korea and Japan, with the latter two countries having launched the mobile TV platforms in 2005.

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