Mobile Video: smartphone and tablet traffic skyrocketing

Wednesday, June 22nd, 2011
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Market and forecasts 2010-2015

IDATE has just released its “Mobile Video” report which takes a look at the mobile video market and its different business models, technologies and core devices. It also provides readers with an analysis of the market and forecasts for its development up to 2015, along with key data on the stakeholders, traffic and sales.

“The global mobile video market (cellular networks only) was worth an estimated 4.3 billion EUR in 2010, and forecast to reach 12.6 billion EUR in 2015, which translates into a compound annual growth rate (CAGR) of 24% for the period. The increase is even more impressive when looking at traffic volume (i.e. number of video minutes) which is due to rise at an average annual rate of more than 80% over the next five years. OTT (over-the-top, i.e. online) traffic accounts for the majority of video viewing time on mobile networks: 60% in 2010, and increasing to 70% in 2015,” says Project manager and Senior consultant Samuel Ropert.

Breakdown of video minutes consumed on mobile networks
worldwide in 2010, by type of network infrastructure:

OTT  Managed Services
---  ----------------
62%               38%

Source: IDATE

Mobile video market in the biggest countries in 2010

The United States and Japan top the ranks of the world mobile video market on cellular networks. Over in Europe, Italy is the biggest market at close to 300 million EUR, followed by Germany. Italy owes its status to heavy take-up levels combined with an attractive selection of content, such as championship football, which stimulates usage and sales revenue. The price of a basic mobile video service is also much cheaper in Italy than in other countries, plus users have the ability to pay by the week and not just by the month as is usually the case.

Japan’s mobile video market is being undermined by the broadcast video market (which is not covered in this report) which is free for users, but which generates hundreds of millions of euros in ad revenue.