Parks Associates recommends operators should offer free content to entice new subscribers
While nearly one-third of U.S. households have a video-capable mobile phone, operators are struggling to find an audience for their mobile video services, according to Mobile TV: Analysis & Forecast (Second Edition).
This new report by market research firm Parks Associates found a majority of consumers with a video-capable mobile phone have never used the video features. For example, 56% have never watched a video clip using a mobile phone. These low usage rates are discouraging for operators hoping to boost revenues through new TV and video services.
“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.”
Mobile TV: Analysis & Forecast (Second Edition) is a study of the global market for mobile TV services. For more information, visit www.parksassociates.com or contact sales@parksassociates.com, 972-490-1113.
About Parks Associates
Parks Associates is an internationally recognized market research and consulting company specializing in emerging consumer technology products and services. Founded in 1986, Parks Associates creates research capital for companies ranging from Fortune 500 to small start-ups through market reports, primary studies, consumer research, custom research, workshops, executive conferences, and annual service subscriptions.
The company’s expertise includes new media, digital entertainment and gaming, home networks, Internet and television services, digital health, mobile applications and services, consumer electronics, and home control systems and security.
