Mobile video services revenue is expected to exceed $2 billion worldwide in 2013, according to the latest data from ABI Research.
ABI Research’s (News - Alert) “Mobile Video Services” study focuses on regional mobile video services that are branded or co-branded by MNOs and provided to mobile consumers for a periodic subscription fee or a per unit transaction fee, including video telephony and video messaging, P2P and Web 2.0 video sharing, and mobile video entertainment.
Video services included in this forecast are video telephony, video messaging, video sharing, video-on-demand, VoD downloads, and “other” video services.
“Video services revenue will only amount to about $121 million this year,” said senior analyst Mark Beccue, in a statement.
Beccue said that but the growth curve is very steep indeed, and will only continue to accelerate through the end of the company’s forecast period in 2015.
The study pointed out that video sharing will be a small portion of this revenue while video telephony, video messaging and video-on-demand will account for the lion’s share.
Consumers’ appetite for mobile infotainment, sparked by the availability of 3G networks, is one of the main drivers for this market, the study said.
This, the study said, will only increase as MNOs move to 4G. At the same time, the proliferation of connected mobile devices means more screens in the hands of subscribers. Web 2.0 services, with their emphasis on real-time collaboration, communication and networking add fuel to the fire.
A few factors, however, do have the potential to limit this growth. The lingering global recession may affect consumption patterns, especially in industrialized nations.
The popularity and adoption of OTT services provide intense competition for MNO-branded mobile video services.
There is still an insufficient range and variety of video-capable mobile devices. And because this industry is still in its infancy, the business models are still immature and imperfectly matched to consumers’ preferences.
“MNOs mustn’t settle for the role of undifferentiated mobile ISPs that manage ‘dumb pipes’,” Beccue advises.
He said that they should provide a variety of mobile video services and leverage strategic ecosystems until they upgrade their networks to provide quality video services.
Beccue said that partnering with device OEMs and software solution providers will help to optimize mobile devices. This will contribute to an already significant investment, but the rewards will be great.
Anil Sharma is a contributing editor for TMCnet. To read more of Anil’s articles, please visit his columnist page.
Edited by Marisa Torrieri