Mobile TV to generate $10bn in 2013

Mobile TV services will generate $1.5 billion in revenues in 2008, rising to over $10 billion in 2013. At present the revenues are predominantly from subscription fees but this is expected to change over time as the advertising business model starts to gain prominence. Informa Telecoms & Media believes that by 2013 nearly half of the revenues will come from advertising.

In the next two years, growth is anticipated to be strongest in the pioneering markets of South Korea and Japan before the rest of the world starts to catch up around 2010/2011. Despite isolated success stories in places like Italy and Austria, Europe is not expected to see rapid growth in Mobile TV until 2009. The US is expected to take even longer as confusion over standards prevents growth. Eventually, concerted momentum behind ATSC-MH is expected to boost the market for mobile TV in North America.

"As the owner of the marketing and billing relationship with subscribers, operators are in the best position to offer mobile TV services", comments Shailendra Pandey, Senior Analyst. "It seems that a good approach for mobile operators will be to start with a free-to-air business model which also involves minimum capital investmen. Once user uptake of services starts to grow, operators can then think of developing new revenue models that can be established on top of the free-to-air content platform", adds Pandey.

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