October 11, 2005
The Coming Mobile-Video Deluge
Wow, this is the second article today on how mobile video content is picking up, this time from Business Week.
"Early video services from providers Cingular Wireless and Sprint Nextel have attracted more than 500,000 subscribers, according to MobiTV, which provides TV services for both carriers.
... Why the meteoric rise? For starters, the technology has improved, and prices on video-capable handsets have dropped.
And, researchers say, mobile-phone subscribers are increasingly eager to watch video programming on the go. Surveys by market consultant In-Stat show that 1 in 8 consumers is interested in buying mobile-TV service. That compares with 1 in 9.4 who indicate a desire for wireless games. "Watching video on cell phones could eventually easily surpass [demand for games, ringtones, and wallpapers], to reach 100% of the population," says Cingular's Hyatt."
Cingular has seen its video-user numbers surge with virtually no advertising. "It has been very popular, and that tells us that there's something there," says Rob Hyatt, executive director for mobile content at Atlanta-based Cingular, the largest U.S. wireless operator. Other providers, including Verizon Wireless, have joined the race to add customers intent on watching news, sports, and entertainment clips over their cell phones."
The U.S. mobile video user base may balloon to more than 20 million by the end of 2007, up from less than 1 million today, says Albert Lin, an analyst at American Technology Research (ATR)."
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