Video not so mobile on cell phones

Research: Only 2.3 million consumers view content clips

By Susanne Ault -- Video Business, 4/3/2006

APRIL 3 | Wireless video content radiates potential, but in terms of consumer usage, it is mostly still unrealized.

The number of Americans with video-capable cell phones grew from 10 million at the end of 2004 to 30 million by January. This year also has unleashed a flood of studio programming for cell phone users, such as Cingular’s on-demand service selling episodes and programs including The Sopranos, Sex and the City and House (VB, 3-8) and MTV Networks’ launch of clips from The Daily Show, Laguna Beach and others for Sprint’s on-demand service. But the number of mobile subscribers accessing the available video remains tiny.

Research group M:Metrics reports that people are primarily using their mobile phones for communication purposes, such as texting and instant messaging friends (see chart below).

M:Metrics estimates that just 2.3 million people are using their cell phones to view content clips.

“One could say that the glass is less than half empty [with video],” M:Metrics VP and senior analyst Mark Donovan said. Regardless of current conditions, however, Donovan believes studios are wisely investing to seed the market.

South Korea and Japan “are far ahead of the pack” and the U.S. “brings up the rear” in the consumption of sophisticated wireless applications, he admitted.

At the end of January, 7.3% of U.K. wireless users subscribed to 3G networks. Just 1.9% of U.S. users subscribe to such networks that are capable of delivering video content.