SOURCE: eMarketer

April 12, 2007 13:46 ET

Mobile TV/Video to Reach $12.7 Billion Globally

But Many Questions Remain in These Early Days

NEW YORK, NY -- (MARKET WIRE) -- April 12, 2007 -- A slew of announcements by mobile carriers, and technology and media/broadcast companies have touted mobile TV and video over the past year. In the US, MobiTV announced its 2 millionth subscriber. Mobile broadcast services are growing in Japan and Korea.

Reports of problems with quality and service continue, however, and the reality is that mobile video penetration in the US is stuck at 3% of mobile phone users. eMarketer's latest report Mobile TV and Video: Big Dreams for the Smallest Screen ( separates the growing pains from the real problems that must be solved before mobile TV and video can deliver a significant audience at a reasonable price.

Two key drivers of the market are 3G and smartphones, both of which are necessary for mobile video and TV. So any attempt to size up the potential Mobile TV/video market is largely a function of 3G penetration forecasts. eMarketer predicts that by 2011 there will be 120 million 3G subscribers who pay a premium for mobile video clips or streams. There will be 80 million mobile TV subscribers worldwide by 2011.

Mobile TV will generate more revenues than mobile video starting in 2011. A significant assumption is that mobile TV subscribers will be among the top quartile of mobile customers in terms of income and revenue potential. These early-adopting, coveted users will be courted by service providers and handset makers to buy the most cutting-edge mobile phones.

Many of the pieces are in place in terms of handsets and higher-speed networks. But this isn't cause for celebration, says John Gauntt, senior analyst and author of the report. "Instead it implies that many of the hard questions that need asking with regards to rights management, revenue sharing and marketing to the consumer must be tackled definitively if the opportunity is to scale above the experimental phase into full deployment."

Inside the report:

--  What is the current state of play for mobile video and mobile TV in
    North America, Europe and the Asia-Pacific region?
--  What are the primary differences between mobile video and mobile TV?
--  How are consumers responding to various trials and the first
    commercial deployments of mobile TV?
--  What are some of the potential wild cards for marketers to understand?

About eMarketer

eMarketer is "The First Place to Look" for market research information related to the Internet, e-business, online marketing and emerging technologies. eMarketer aggregates and analyzes e-business research from over 2,800 sources, and brings it together in analyst reports, daily research articles and the "eStat Database" -- the most comprehensive database of e-business and online marketing statistics in the world.

Contact Information

  • Media Contacts:
    Kris Oser
    Director of strategic communications, eMarketer
    Email Contact
    Tel. 212-763-6033
    Jared Jenks
    Marketing communications coordinator, eMarketer
    Email Contact
    Tel. 212-763-6044