Mobile video to take up 60% of all mobile traffic by 2016
Joseph O'Halloran ©RapidTVNews | 16-10-2011 A new report by analyst Visiongain has calculated that more than three-fifths of mobile traffic will be accounted for by TV and video applications in the next five years.
The "Mobile Video & TV on Smartphones: Market Drivers and Challenges Report 2011-2016" also predicts that the market will increase at a CAGR of 28% with revenues reaching $22.5 billion by 2016.
Yet before anyone can make good the potential offered by the explosion in traffic, the analyst warns that the mobile video and TV market needs to overcome several challenges during the forecast period.
Visiongain cautions that at present mobile video and TV services are straining the 3G networks and notes that its research suggests that operators will migrate to LTE to solve the bandwidth/capacity issues, suggesting that operators do not want to lose the revenues from data intensive services such as mobile video and TV and will embrace LTE with full gusto. In addition, Visiongain identifies streaming videos with Sling's Android player over Verizon's 4G network as already a success in the US.
Visiongain believes that understanding the competitive landscape and identifying voids will help the players in designing monetising strategies and gain early movers advantage.