Companies Lining up to Entice Consumers with Mobile Video Options

Experts expect worldwide market to boom by end of decade

PLANO, Texas--March 7, 2006 -Watching "Survivor" on your cell phone? Watching your favorite basketball team on the iPod? The idea of watching TV or streaming video on a handheld device is not yet main-stream, but telecom providers are spending millions developing services in hopes of riding the expected wave of increasing consumer adoption. A wide range of research firms are forecasting the market to grow to anywhere between $5 billion and $25 billion worldwide by 2010.

ABI Research forecasts that from about 1 million customers today, demand will explode by 2010 to 250 million customers worldwide who subscribe to video services on mobile phones, creating a market worth $27 billion.

In the U.S., consumers are slower to adopt handheld video offerings and EMarketer forecasts that only 15 million U.S. consumers will watch TV on mobile devices by 2009.  In-Stat/MDR puts the U.S. number at 22.3 million and a U.S. market worth $5.4 billion. The company also predicts that 31.1 million people will use video messaging services by 2009, meaning that mobile video services will account for almost 15 percent of total wireless data revenues.

A recent In-Stat/MDR survey of U.S. wireless consumers found that 13.2 percent of them are extremely or very interested in buying video services for their cell phones. Many factors like advances in compression technologies, availability of multimedia handsets and consumer interest, will boost wireless video services, according to In-Stat/MDR. By comparison, video is a driver in Europe, but so are music services, ring tones and games, according to market researcher IDC.

ViewCast develops video and audio communication products for delivering content dynamically via a variety of network types and protocols. These products include Osprey� Video capture cards, Niagara� video encoders/servers and ViewCast� IVN enterprise software and systems. Our products address the video capture, processing and delivery requirements for a broad range of applications and markets.

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