Report: Mobile Video Users Say Free is Better
According to a new study from Internet research company JupiterResearch, mobile users love video on their phones, but don’t want to pay for it. The “Video on Cell Phones” report found that while 11% of mobile phones in consumer hands will be capable of playing video by the end of 2006, and 25% of consumers want to watch video on their phones, by the end of 2006, only 1% of mobile users will pay a subscription fee to do so. The most desired video content: live TV.
“This high level of interest demonstrates that there is market potential,” said JupierResearch director Julie Ask in a statement. “Service providers will need to give consumers context for watching TV on a small screen in order to convert interest into paid subscriptions. Given current consumer resistance to paying, the most plausible business model for carriers to adopt is one that combines paid and ad-supported mobile video subscriptions.”
The study also examined how mobile video services in the U.S. are changing and what mobile providers are doing to increase the appeal of paid subscription video. Other preferred types of content: full-length movies, video clips, and pre-recorded TV shows.
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