Content and Pricing Limit Mobile Video Adoption

Electronic News cites a "new study from JupiterResearch which notes that 41 percent of mobile phone users are interested in some form of video service on their handsets." The study says the "growing demand for video will generate $501 million in revenues by 2010, up from $62 million in 2005."

Although Jupiter notes that "adoption of the technology has been slow to take hold with only 2 percent of mobile phone users claiming a subscription," Jupiter said, "17 percent of mobile subscribers said they were interested in watching “live” television on their cell phones while 11 percent indicated interest in short video clips."

Julie Ask at JupiterResearch said, "This consumer interest bodes well for the mobile industry as vendors use different business models to try and tap into this consumer demand. The challenge is not interest but rather finding the correct mix of premium content and price points that is lacking in today’s offerings.”

David Schatsky at JupiterResearch added, "Longer term adoption will depend more on business models and content offerings than on the technology or devices. Our research shows that there’s a strong consumer interest in consuming mobile video. Consumers are just not interested in paying large fees for mediocre content."