• August 29, 2006

Mobile video subscribers are expected to make up 10 percent of all U.S. cell customers by 2009, according to a new report released Monday by technology research firm In-Stat. Following an experimental stage, long-form mobile video (videos of a half hour or more) will begin to gain traction among consumers by 2008. Today, long-form content downloaded to portable devices amounts to just 1 percent of the $20 billion-plus video consumer market in North America--not including cell phones. Much of that content comes from downloadable TV shows available via iTunes and other portable media players. Companies such as Apple Computer, AOL and Amazon are now also taking steps to offer downloadable movies via PC and mobile devices. Giving consumers the ability to transfer files from their own collections will be a key factor in the growth of mobile video. "Without the ability to 'carry' mobile content derived from users' physical libraries, the mobile/portable market will likely fail to reach its utmost potential," stated the report. The emerging mobile video market is unlikely to cannibalize revenue from traditional media platforms, such as DVDs, according to the study--instead, it will add to top-line growth.

--Mark Walsh