Although the global market for mobile TV and video will grow quickly (rising from US$2.46 billion in 2006 to US$8.35 billion in 2011) content providers are finding it difficult to finance new projects, according to Informa Telecoms & Media. “While mobile TV and video content is less expensive to produce than film or broadcast TV content, it still requires upfront production costs that typically run several thousand dollars per minute,” said Chris Coffman, senior research analyst at Informa and author of the report. “Revenue shares don’t fund the initial creation of content. The mobile TV and video sector would benefit from distributors, such as broadcasters, mobile operators and content aggregators, sharing in more of the risk.”
This is in a report by Informa, Getting Into Mobile TV, that was done “in partnership with peacefulfish”, a German financial consultant. Juliane Schulze, senior partner at peacefulfish, suggests that “Content producers could accept the challenge of financing the development and production of made-for-mobile content, for example by actively involving brands and advertisers in their content creation.”
As an interesting comparison, Informa predicts that operator revenues from video-sharing services will rise to more than $13 billion by 2011 from $3.45 billion this year.
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–<a href="http://www.moconews.net/entry/be-cautious-with-mobile-tv-in-europe-ovum/" title="Be Cautious With Mobile TV In Europe
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