U.S. Mobile Video Revenue Up 198%; Users Open to Advertising

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U.S. Mobile Video Revenue Up 198%; Users Open to Advertising

6:55 am on July 15, 2007 | Category: Business, Wireless, Cell Phones, Multimedia

U.S. mobile TV and video revenue reached a total of $146 million in the first quarter of 2007, according to new data from Telephia Inc., up 198% from the first three months of 2006.

Approximately 8.4-million Americans now subscribe to some form of mobile video service, representing almost 4% of U.S. wireless customers.

“Within a very short time, the number of mobile video subscribers has grown to over 8 million, comparable with the average audience size for an episode of ‘The Sopranos’ this season,” commented Telephia’s vice president of mobile media, Kanishka Agarwal.

Telephia’s study also revealed that almost half of mobile video subscribers would be open to the idea of viewing wireless ads in exchange for a discount or additional services. At least 55% of those surveyed recalled seeing at least one mobile ad in the past 30 days, which is more than three times the rate observed for mobile data users in general.

“Consumers are used to seeing commercials on their TV at home, which has created a learned behavior that is transferring to mobile TV and making advertising more acceptable,” Agarwal explained. “Nearly half of mobile video users are willing to view ads on the phones in exchange for something, translating into a compelling opportunity for ad-supported mobile content where marketers can target customers with relevant advertising.”