ABI Research is forecasting that revenue from mobile video services could exceed $2 billion worldwide as early as 2013. The latest data from ABI relates to mobile video services as defined to include video telephony, video messaging, video sharing, video-on-demand, and VoD downloads.
“Video services revenue will only amount to about $121 million this year,” noted senior ABI Research analyst Mark Beccue. “But the growth curve is very steep indeed, and will only continue to accelerate through the end of our forecast period in 2015.”
If the research yields an accurate forecast, it will be video telephony, video messaging, and video-on-demand as opposed to video sharing that will be responsible for the majority of the anticipated ballooning revenue stream. Sparked by the availability of 3G networks, the escalating demand for mobile video content and services will only increase as MNOs move to 4G.
Although consumers’ appetite for mobile infotainment continues to drive the growth of this market, the aftermath of the global economic downturn still presents hurdles to the emergent popularity of mobile video services. The popularity and adoption, for example, 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, the report adds. “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 Ã¢â‚¬Ëœdumb pipes,'” Beccue warns. “They should provide a variety of mobile video services and leverage strategic ecosystems until they upgrade their networks to provide quality video services. 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.”