Mobile TV and Video to Exceed $15 Billion in Worldwide Revenue by 2012

Wednesday, July 9th, 2008
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SCOTTSDALE, Ariz. — Consumers are demanding more personalization and entertainment content on their mobile phones, driving mobile video subscription revenue to exceed $3.5 billion in 2008, according to resent research by MultiMedia Intelligence. By 2012, the mobile video and mobile TV market will exceed $15 billion, including direct pay and advertising.

Mobile video, which relies on the mobile operator’s 3G network for delivery, has the advantage of an established network, making it the stronger of the two categories in today’s market. However, mobile TV infrastructure deployments and mobile TV handsets are rolling out aggressively, making mobile TV the dominant category in 2012.

“The mobile phone is inherently an inferior entertainment platform compared to other media devices like TVs,” according to Frank Dickson, Chief Research Officer for MultiMedia Intelligence. “However, the mobile handset is inherently a superior portable communications platform. It allows for TV advertising outside the home as well as enabling new forms of advertising, including “call to action” advertising. Call to action leverages the handset’s built in return channel to deliver advertising beyond the capabilities of the living room TV experience.” MultiMedia Intelligence also found that:

  • Mobile TV ARPUs are much higher in North America and Europe than Asia due to the lack of free-to-air alternatives.
  • Total Mobile TV and Video advertising revenue, including “Call to Action” advertising, will exceed $1 billion by 2012
  • With the combination of a large wireless subscriber base and free-to-air alternatives, Asia has the vast majority of mobile TV subscribers. By 2012, Asia will have two thirds of all mobile TV subscribers.

The research, “Mobile TV and Video: Premium Content and Advertising Elevate the Phone Away From Just Voice,” provides revenue, ARPU and subscriber forecasts for mobile TV and mobile video services.