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July 4, 2008

Overall, global mobile videophone sales were almost $100 billion last year, and are expected to grow rapidly until at least 2013, according to Infonetics Research.

And this is despite the challenge wireless service providers face in making mobile video services profitable.

The communications market research firm’s survey shows that the number of mobile video subscribers topped 10 million worldwide last year, and is expected to nearly triple by the end of this year.

Growth is strongly expected to continue well into at least 2011.

The report also found that wireless service provider revenues from mobile video services nearly tripled worldwide last year, and is expected to nearly triple again this year.

Infonetics expects advertising will play a major role in ensuring the profitability of mobile video services, and mobile operators will be working throughout 2008 with advertisers and media buying agencies to sell more of mobile video ads, which should become more prevalent in mid-2009.

Jeff Heynen, directing analyst at Infonetics said “the amount of money it takes to manufacture mobile video phones with high-quality screens and extended battery life will continue to drop considerably over the next few years, and as that happens, service providers will want to make sure they have the phones with the most revenue-generating potential in the hands of their subscribers."

He added "we expect the number of mobile video phones to quadruple between 2007 and 2011.”

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Source: Infonetics.