According to Infonetics Research worldwide mobile videophone sales neared $99 billion in 2007 and are expected to grow strongly over the next 5 years, despite the challenge service providers face in making mobile video services profitable. The communications market research firm’s report shows that the number of mobile video subscribers topped 10 million worldwide in 2007, and is expected to nearly triple by the end of 2008, with growth continuing through at least 2011.
“The amount of money it takes to manufacture mobile video phones with high-quality screens and extended battery life will continue to drop considerably over the next few years, and as that happens, service providers will want to make sure they have the phones with the most revenue-generating potential in the hands of their subscribers. We expect the number of mobile video phones to quadruple between 2007 and 2011,” said Jeff Heynen, directing analyst for IPTV at Infonetics, said in a statement.
The report also found that service provider revenues from mobile video services nearly tripled worldwide in 2007 and is expected to nearly triple again in 2008. The firm expects advertising will play a major role in ensuring the profitability of mobile video services, and mobile operators will be working throughout 2008 with advertisers and media buying agencies to sell mobile video ads, which should become more prevalent in mid-2009.