Mobile Video Revs and Subscribers Up 300%

May 16, 2007

This article is included in these additional categories:

Asia-Pacific | Europe & Middle East | Global & Regional | Media & Entertainment | Telecom | Television

Worldwide, mobile video service provider revenue jumped 317%, to almost $200 million, from 2005 to 2006, and is expected to triple in 2007, according to a report from market research firm Infonetics Research. Moreover, the number of worldwide mobile video subscribers increased more than 300% between 2005 and 2006, and is projected to soar to over 46 million by 2010.

Drivers for such strong growth include increasingly powerful and efficient handsets and anticipated switchoffs of analog broadcast signals, according to the report, titled Mobile Video Devices, Services, and Subscribers.


Highlights from the Infonetics report:

  • Asia Pacific will be the regional stronghold of mobile video subscribers through at least 2010, with 57% of the world total in 2006, followed by EMEA (Europe, Middle East, Africa) at 31%, North America at 10%, and CALA (Central and Latin America) at 3%.
  • SK Telecom in Korea and NTT DoCoMo in Japan offer their mobile video services essentially free, a major reason Asia Pacific’s share of mobile video service revenue is about half that of EMEA, despite having almost twice as many subscribers.
  • The number of mobile video handsets sold worldwide nearly doubled from 2005 to 2006 (including video-capable handsets not necessarily tied to a specific mobile video service).
  • Mobile video service ARPU (average revenue per user) in all regions increases significantly from 2006 to 2010, tripling in Asia Pacific (from a low base) and more than doubling in CALA.

“We will continue to see healthy growth in the mobile video services market as mobile operators expand the bandwidth of their existing 3G networks…, roll out dedicated broadcast networks, and deploy new mobile video service delivery platforms,” said Jeff Heynen, directing analyst for broadband and IPTV at Infonetics.

“Competition among service providers will keep subscription prices lower in the long term, but that revenue will be supplemented by incremental service revenue from on-demand viewing. We expect to see a spike in mobile video service revenue in 2008 due to the Summer Olympics in Beijing which, similar to last year’s World Cup, is a deadline for many operators to get their mobile video services up and running.”

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