Moving Mobile Video from Niche to Mass Market

On-demand mobile video continues to be one of the fastest growing services in the wireless industry. Streaming and downloaded video, user-generated video, interactive video, and video ring tones are all potential revenue streams. According to consumer research organization, Telephia, mobile video revenues in the U.S. totaled $146 million in Q1 2007, growing 198 percent year-over-year.

However, despite its vast potential, mobile video remains a niche offering with under 10 million subscribers and less than 5% market penetration. Clearly, both sides of the market – consumers and providers – want mobile video to succeed. So what will it take to break into the mass market? The road map below offers mobile video companies a route to the masses.

Cost-effective video creation. Mobile video producers need a standard way to create and deliver content. They don’t want to have to manage one vendor to create a video streaming application, a second to stream the video, and a third to insert advertising into the service. A standard platform that integrates all of these services creates economies of scale that support healthy business.

Free content. Yes, free. By offering advertising subsidized mobile video and eliminating subscription fees, companies can remove a core barrier to consumption. Free content means more users, which means more advertising and merchandising revenues, which will more than make up for lost subscription fees.

Consistent user experience. Applications need to be built to make it easy to discover and consume video content. Users should be able to consistently and intuitively download, store, and launch a mobile video, regardless of application or device. Sure, it’s a tall order, but consistency is key to their mass market ambitions and profits.

Proper packaging. Video must be optimized for the mobile environment. Each and every mobile video chunk should be self-contained, with a beginning, middle, and end. And our focus group studies have show that the most effective mobile videos are never more than 7 minutes long. Content providers also need to keep video fresh, updating the user experience, the content, everything about the application on a regular basis.

Application integration. Mobile video applications must be integrated with other applications on the device, so users can act on video prompts without leaving the video application. Integration is key because it simplifies and encourages action – votes, click throughs, purchases, etc.

  

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Detangle the Deck. A consistent methodology and cost for getting video onto carriers’ portals, aka “the deck,” will make it easier for content providers to get their content to consumers. Today, each carrier has its own processes and costs, raising costs for content providers and curtailing broad distribution.

The road to mass market mobile video is still under construction. But as more carriers and media and content companies recognize the bottom line advantages of mobile video, they’ll begin taking the steps above to get in the fast lane.