Joseph O'Halloran ©RapidTVNews | 19-07-2011

With nearly two-thirds of smartphone owners watching video on their devices, and nearly 86% of tablet owners doing so, mobile video is now rapidly developing market according to new research from In-Stat.

Indeed even though many mobile video products have only recently launched, the analyst believes that providers are experiencing significant growth in usage rates and forecasts that mobile video consumption will surpass 693 billion minutes by 2015.

The Mobile Video on Tablets and Smartphones: IP Delivery Creates a New Battleground for Pay-TV Providers report suggests that the numbers indicate the potential market demand and are indicative of a larger trend of strong growth in mobile video consumption worldwide.

Despite the wishes and prediction of many in the mobile TV and video industry, the survey revealed that the majority of video access is occurring in a non-mobile environment, often in the home, particularly for tablet devices and in the consumption of long-form video.

Indeed, In-Stat found that tablet viewer watch more video and are willing to pay a higher price for that video compared to smartphone viewers. However, the report also showed that only a small portion of viewers wish to watch full length premium video.

“As content restrictions are liberalised and the proliferation of smartphone and tablet devices continues to expand, so too will mobile video consumption,” commented Amy Cravens Market Analyst. “However, it is important to note that the consumption differs significantly between smartphones, tablets, and notebook/netbooks. Differences include content length, content genre, and content acquisition. Content providers need to customise their offerings by target platform.”
Even though there are currently significantly more smartphone viewers than tablet viewers, In-Stat expected the gap to narrow in coming years.

On a cautionary note, In-Stat warned that the largest barriers to mobile video growth are those erected by content owners, followed by network capacity issues.