Mobile Video Is A Tough Sell

US : With the emerging availability of mobile video, a recent In-Stat US mobile phone subscriber survey revealed that one in eight respondents indicated they were interested in purchasing mobile video services from their wireless carrier, reports In-Stat (http://www.in-stat.com). However, two thirds of mobile phone subscribers are not yet ready for video services on their handsets, a number that is nearly unchanged from the previous year's survey, the high-tech market research firm says.

"Though mobile video does not yet appear to have widespread appeal, In-Stat believes that there is enough interest for it to generate some significant revenue for carriers in the near term," says David Chamberlain, In-Stat senior analyst. The number of subscribers purchasing mobile video content in the U.S. will increase from an estimated 1.1 million in 2005 to over 30 million in 2010, In-Stat forecasts.

A recent report by In-Stat found the following:

The most desirable customers (long-term loyal customers who are satisfied with their service and unlikely to churn to other carriers) are the least interested in purchasing mobile video.

In-Stat's analysis of the consumer survey provides some pricing guidelines that maximize carrier revenue.

Between now and 2010, the greatest year-on-year growth will come in the 2005-2006 period as deployment of high-bandwidth networks become more widespread in the US. It will also be a period of expanded carrier marketing of video services increases and broader availability of video-capable handsets.

The report, "Mobile Video Services - Perched at the Brink" (#IN0502050MCD),covers the US market for mobile video services. It includes results of the Consumer Mobility Study (CMS) conducted in January 2005 by In-Stat, and subscriber and revenue forecasts through 2010. The report also contains analysis of global trends and carrier strategies, and vendor profiles.