US Mobile TV/Video Market To Expand — IDC

IDC has predicted that around 24 million US mobile users will be paying for some form of TV/Video content and services on their mobile devices by 2010, up from 7 million this year. “Although our research found penetration of these services isn’t likely to exceed 10% of all subscribers by 2010, video/TV services are poised to become a significant contributor to carrier data ARPU while emerging as a hotbed for community-oriented interaction and interesting advertising experiments,” said Lewis Ward, research manager in IDC’s Wireless and Mobile Communications program…Overall, blended cellular TV video/TV content and service ARPU is expected to settle in at about $6.50. This metric is comprised of three elements: a la carte content purchases, narrowband (i.e. “2.5G”) subscriptions, and broadband (i.e. “3G”) subscriptions. Within this mix, broadband video/TV services should grow from less than half of all revenues last year to about 85% of the total in 2010, with a substantially above average ARPU. Survey data suggest that a mix of on-demand clips and live streaming content is the most appealing to consumers.”

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