Mobile video – give it time and watch it fly

Despite the somewhat underwhelming response to mobile content so far, video mobile will be big – it'll just take some time, according to analysts.

Big content deals between operators and providers – such as the recent match-up between Vodafone and Sony – suggest that the operators are confident enough to put their funds into it. A report by analyst firm ARC Group, Mobile Video and Strategic Outlook 2003-2008, predicts that once operators have got the balance between networks, handsets and content right, the format will be a winner.

The report says that by 2008, the mobile video market will be worth $5.4bn and, while between 2003 and 2005 take-up will be tentative, by 2008, 250 million consumers will be using some form of mobile video.

In order to get consumers joining the mobile content bandwagon, the first major obstacle to overcome is the price of handsets – at present, says the report, the cost is putting them off.

Consumer interest in video mobile is certainly there. A survey of consumers this week revealed that almost a quarter of UK mobile owners want to own a video phone. ARC predicts "mass-market penetration of video-enabled handsets by 2006".

Affordable handsets should be combined with networks with enough bandwidth to suit the video content proposition and enough mobile-only content to keep users interested, the report concludes.