Wednesday, March 22, 2006

Telephia: Mobile TV and Video Attracting a High Percentage of the Coveted Young Adult and Male Audience

According to a new report from Telephia , while Mobile TV and video usage is growing slowly, it "is attracting a higher proportion of the young adult and male demographi. The report found that "1.5 percent or roughly three million wireless subscribers in the U.S. streamed TV or played video content on their mobile devices in Q4 2005. Historical data from early 2005 show penetration of 1.4 percent."

Telephia's data showed that "younger mobile subscribers, age 18-24 have the highest penetration for mobile TV and video usage, securing a 3.3 percent rate, doubling since the beginning of 2005. Overall, men are more likely to stream TV and play video content on their wireless devices than women, showing a penetration rate of 1.8 percent or more than 3.5 million wireless subscribers during Q4 2005. Female mobile subscribers who accessed mobile TV and video content over their handsets had a rate of 1.2 percent in Q4 2005, equaling 2.5 million consumers."

Kanishka Agarwal at Telephia said, "During this early adopter stage, audience demographics play a significant role in directing mobile companies how to best develop mobile TV and video content offerings. The key for providers is to be able to understand the needs of these individual groups and supply targeted content that they will pay for."

Penetration Rates of Mobile TV/Video Activity (U.S.)

Penetration Rate (%)
Demographic Segment Q1 2005 Q2 2005 Q3 2005 Q4 2005
All Subscribers 1.4% 1.4% 1.4% 1.5%
Youth Subscribers 1.8% 2.9% 2.9% 3.3%
Male Subscribers 2.2% 1.9% 1.7% 1.8%
Female Subscribers 1.1% 1.0% 1.2% 1.2%
Source: Telephia, Q1 2005-Q4 2005
The report also found that "V CAST (from Verizon) and MobiTV subscribers spend roughly $40 more per month as compared to non-TV subscribers. During Q4 2005, V CAST and MobiTV subscribers spent an average of $94 in total monthly charges in comparison to non-TV subscribers who had an average total monthly spend of $54."

Agarwal added, "The revenue stream for mobile TV and video content is very strong and shows upward promise. The combination of price, quality, diversity of content, and handsets capable of viewing content will be instrumental in the long-term growth."