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More than 4 in 10 mobile phone subscribers are interested in a video service, but carriers must find the right combination of premium content and price, a research firm said Tuesday.
With 41 percent of cellular phone subscribers open to video, JupiterResearch predicts the medium will generate $501 million in revenues by 2010, compared with $62 million in 2005.
Adoption of mobile video has been slow so far, with only 2 percent of cellular-phone subscribers having the service, the research firm said. However, a survey found that 17 percent of subscribers are interested in watching TV on their mobile phones, and 11 percent say they're open to receiving short video clips.
JupiterResearch analyst Julie Ask said consumer interest bodes well for the mobile industry, as long as it can find the right business model to tap demand.
"The challenge is not interest but rather finding the correct mix of premium content and price points that is lacking in today's offerings," Ask said in a statement.
Adoption will depend more on business models and content offerings than on technology or the devices, JupiterResearch analyst David Schatsky said. While consumers are interested in mobile video, they're not going to pay large fees for mediocre content.