Friday, 8 August 2008

Study: Consumers not Buying-in on Mobile Video Services

A recent Park Associates study has revealed that while nearly one-third of U.S. households have a video-capable mobile phone, majority of them have yet to explore the capability.

According to the study, 56% have never watched a video clip using a mobile phone and these low usage rates are discouraging for operators hoping to boost revenues through new TV and video services.

The report recommends operators to offer free content to entice new subscriber.

“Buy before you try is always a tough sell,” said John Barrett, Director of Research, Parks Associates.

“Most subscribers must pay additional money to watch video and mobile TV services, even once they have purchased an appropriate phone. This circumstance presents an obvious chicken-and-egg obstacle to adoption. Many consumers are hesitant to pay for a new, unfamiliar service, but they will remain unfamiliar with the service until they or someone they know uses it.”

The report predicts operators will overcome this challenge by offering more programming at no cost.

“A free taste would go a long way in making the consumer case for mobile TV,” he said.

“Mobile TV services have taken off in Japan and South Korea, where service is offered free of charge. In Italy, where additional fees have been the norm, usage has been limited. It’s in everyone’s interest to offer some free programming.”

Other findings from the survey include 40% of the respondents never having played music files on their mobile phones; more than 60% never watched live TV on their mobiles and close to 80% never downloaded games onto their mobiles.