Mobile video service subs to grow five-fold

The global number of users paying for mobile video services will grow five-fold from 2008 to 2014, surpassing 534 million, with a substantial proportion of mobile net additions coming from emerging markets, according to a report from Pyramid Research, the telecom research arm of the Light Reading Communications Network.

Video is increasingly making its way into the mobile space across developed and emerging markets. “Pyramid Research estimates that the global number of users paying for mobile video services directly delivered to their handsets will grow five-fold from 2008 to 2014, surpassing 534 million at the end of the period,” says Derek Medlin, senior analyst at Pyramid Research and author of the report. “This is equivalent to 8.5 per cent of all mobile subscriptions, up from the current 2.5 per cent level,” he adds.

“The availability of improved devices and networks are contributing to a higher level of adoption and spending on mobile video services,” says Medlin. “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 per cent growth in total mobile subscriptions from 2009 to 2014,” he explains. Markets such as Japan, Hong Kong, and South Korea already lead in terms of mobile video penetration of subscriptions, but Pyramid also expects important uptake in India in the next five years.

“Looking ahead, Asia/Pacific will remain in the top spot, attaining more than 281 million subscriptions by 2014, although we expect Latin America to grow at the fastest pace, increasing at a CAGR of 39 per cent from 2009 to 2014,” Medlin says. “Because of intense competition in the video market, operators have to be creative when launching new services; to meet surging demand for video, mobile players are making network upgrades, reducing data charges, improving content, and offering more advanced handsets,” he adds.

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