Mobile TV Requires Ad Revenue in Order to Reach Monetization Potential

6:00 am on September 26, 2008 | Category: Multimedia, Telecom Services, Television, Wireless

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Mobile TV will grow almost ten-fold in the coming years, but a number of inhibiting factors in the mobile advertising industry will prevent the technology from achieving its full monetization potential in the near future, according to a recent report by NSR.

The number of mobile TV and video subscribers will increase from 57 million at the end of 2007 to 566 million in 2013, with much of that growth expected to come from free broadcast services and unicast video as a result of broadcaster involvement in mobile broadcast distribution, 3G network expansion, user-generated mobile video content, and social networking integration, according to the report.

Global revenues from mobile TV are projected to reach US$9 billion by 2013, with advertising revenue exhibiting the highest growth, as free mobile broadcast services and ad-supported video continue to proliferate. The embryonic stage of mobile advertising in general, however, will prevent cell phone TV commercials from reaching their full monetary potential, even by 2013.

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    Edited by Jeremy Maddock