A key driver of this growth will be the expansion of broadband video services around the world, according to the forecast. Harry Wang, a senior analyst with Parks, observed: "Video capability fuels the upgrade demand from existing device owners, and more content, especially free and short online video clips, gives consumers the incentive to upgrade" from audio-only players.
The boom in portable media players is good news for mobile video advertisers, provided they can figure out an appropriate ad model. According to a separate report on mobile TV and video published by eMarketer in July, 41% of Americans said they would watch advertisements in return for free mobile video content. Meanwhile, a study published in June by research firm Telephia tallied total mobile video revenues of $146 million in the first quarter of 2007--a 198% increase over the first quarter of 2006. Telephia said mobile video subscriptions grew 155% to 8.4 million over the same period.