14 DAY TRIAL // The number of users who access mobile video and TV services is expected to see an impressive growth in the following few years, a recent report coming from market researcher Pyramid Research shows. Compared to 2008, the number is expected to register a fivefold increase, up to 534 million in 2014, the report says.
It seems that the increase will be based on the latest enhancements in bandwidth, while also being driven by lower data costs and by the advancements in the hardware of the mobile phones. The mobile video the report refers to includes paid video clips, music videos, TV episodes, TV programming, and online movies, all of which are offered directly to the handsets.
“The availability of improved devices and networks are contributing to a higher level of adoption and spending on mobile video services,” says Derek Medlin, senior analyst at Pyramid Research and author of the report. “Pyramid Research believes that a substantial proportion of mobile Net additions in the next five years will come from emerging markets, especially in Asia/Pacific, and will drive a 37 percent growth in total mobile subscriptions from 2009 to 2014.”
According to Pyramid Research, the revenue from mobile video services on the United States market is expected to reach $16 billion by 2014, but the firm also says that the greatest demand for these services will actually come from Europe and Asia/Pacific. While countries like Japan, Hong Kong, and South Korea are already placed among the first when it comes to the number of mobile video subscriptions, it seems that India and the LATAM region will see a higher growth during the following five years.
“Looking ahead, Asia/Pacific will remain in the top spot, attaining more than 281 million subscriptions by 2014,” says Medlin in the report, “although we expect Latin America to grow at the fastest pace, increasing at a CAGR (compounded annual growth rate) of 39 percent from 2009 to 2014.”