Mobile Video Subscribers in Asia/Pacific to Reach 250 Million by Year-End 2014, Pyramid Finds

CAMBRIDGE, Mass., Nov. 10, 2010 /PRNewswire/ -- Despite the difficulties to date, the timing is ripe for mobile video services to take off in certain Asia/Pacific markets due to the enhanced capability of the networks, increasing popularity and affordability of smartphones, and improvements in the mobile video business, according to a new report from Pyramid Research (www.pyr.com).

Network Upgrades Put Mobile Video on the Fast Track analyzes the changes and improvements in the mobile video ecosystem that will act as stimulants for the adoption of mobile video services. Specifically, this report will address the contribution of three key areas to the development of the mobile video business.

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Pyramid Research estimates there will be 59 million mobile video users in Asia/Pacific by year-end 2010. Over the next five years, this user base will increase, at a CAGR of 23 percent, to reach over 250 million subscribers and will generate a cumulative US$31 billion from mobile video services in Asia/Pacific.

Operators in Asia/Pacific will be prepared for their networks to deliver an enjoyable mobile video viewing experience to their subscribers due to network improvements allowing faster data transfer speeds with lower latency, in addition to the development and deployment of mobile broadcasting technology, notes Leslie Arathoon of Pyramid. "Ultimately, success will mean different things for different stakeholders. Mobile operators will want to make sure they are able to monetize rising demand for mobile video, particularly given the huge strain that bandwidth-rich video and streaming television can put on a mobile network," adds Arathoon.

Regardless of the varied goals, one thing is clear - the need to develop successful business cases for all involved parties in the provision of mobile video services. Mobile operators will face the largest challenge, given the downward pressure on ARPS that most are experiencing and the strain on their networks from the launch of mobile videos.

"Operators in the region that are serious about their mobile video offerings are starting to understand the type of content, service, and pricing that best meets the needs of consumers," Arathoon explains. "Simply put, the old system of simply forwarding TV content to mobile devices has proven ineffective, and operators are now going beyond editing content to producing content."

SOURCE Pyramid Research