Mobile TV market to hit US$15bn

9 Jul 2008

Revenues from advertising and direct pay from the mobile TV and video market are predicted to reach US$15bn by 2012, new research claims.

According to new research from MultiMedia Intelligence consumers are demanding more personalisation and entertainment content on their mobile phones, driving mobile video revenue to exceed US$3.5bn in 2008.

By 2012, the mobile video and mobile TV market will exceed US$15bn, 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,” said 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,” Dickson said.

MultiMedia Intelligence also found that mobile TV ARPUs (average revenues per user) 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 US$15bn 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.

By John Kennedy

John Kennedy is a journalist who served as editor of Silicon Republic for 17 years