Study: Mobile customers want video streaming

The mobile market is experiencing increased demand for video services, as cell phone companies begin rolling out third-generation networks, according to a study that market research company In-Stat/MDR released Monday.

A number of operators have deployed 3G networks in a limited way, and more are likely to announce services later this year and next year, In-Stat/MDR said. The company predicts that mobile video services will generate revenue of $5.4 billion by 2009.

By that time, nearly 22.3 million Americans will be accessing mobile video content, the company said, while 31.1 million will use video messaging services. Mobile video services will account for nearly 14.9 percent of total wireless-data revenue, the company predicted.

A recent In-Stat/MDR survey of wireless consumers found that 13.2 percent of them are extremely interested or very interested in buying video services for their cell phones. Additionally, the company found that Sprint PCS customers are likely to be early adopters and are the most likely, among those surveyed, to be interested in mobile video services.

A combination of factors, including advances in compression technologies and the availability of multimedia handsets, as well as consumer interest, will boost wireless video services, In-Stat/MDR said.

"While still a relatively small niche of the market, (the number of people who want video services) is significant in that it represents the 'natural demand' for mobile video services, prior to any large-scale carrier deployments or market messaging," Clint Wheelock, director of In-Stat/MDR's wireless research group, said in a statement. "Moreover, interest in mobile video is higher than for all other prospective mobile multimedia services covered in this survey, including gaming and music services."

By comparison, video is also seen as a driver in Europe, but so are music services, ring tones and games, according to research company IDC.

[jacomo]

Video Streaming

Good article, however it focussed on the wrong devices. The story should have focussed on the impact the WiFi or WLAN Metro Area Networks business will have on the resurgence of the PDA with both a WiFi 802.11a/g (future 802.16d)capabilities as well as a VoiceIP over WLAN. That market plus Gaming Content as well as video (MPEG4 Part2 ASP)capabilities on PDA new larger screens will be the darling of the 12-34 year old Set.
3G nets like EV-DO will have a short life when consumers realize that all the bandwidth they are really getting is 128-384Kbps (unless under the tower or in Rochester Mn. in February). They will then settle for using the service when driving between WLAN HotZOnes (Metro Areas).

The WiFi/WLAN HotZone will spring up quickly as new WISP and smaller Telco realize that they can deploy a true Broadband (vs. EV-DO NArrowband at best) in a large geography. If you do not believe "large" here check out what BelAir and Tropos can do with a Wireless Meshed Network.

Need some more articles on just what some of these new Model Service providers are doing in this space. Unfortunately their work does not attract the Ad revenues or the ENterprise Analysts who write on the industry.

Jacomo