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Why mobile video is set to explode

Headlines

Mobile video has historically been held back by a single factor: bandwidth. But 4G LTE is changing that, and mobile video is already more popular on the faster wireless networks.

Mobile video is quickly becoming a mass consumer phenomenon, much as digital photos were earlier in the smartphone adoption cycle.

In a new report, Business Insider Intelligence (BII) analyzes the impact of 4G LTE and device design improvements on mobile video growth, examines who watches mobile video and how they watch it, and details the mobile video monetization opportunity.

According to BI Intelligence, here’s why mobile video usage is set to explode:

Significant mobile device growth to come. Over the last two years, the U.S. mobile video audience increased 77 percent to 36 million viewers. The U.S. smartphone market is relatively mature, but globally, we are still early in the smartphone revolution. Plus, tablet sales are expected to explode in the coming years. More mobile devices mean more mobile video consumers and more mobile video consumption.

Increase in 4G LTE accessibility. 4G subscribers in the U.S. are 33 percent more likely to watch a video on their smartphones than the average mobile user. Increased accessibility to 4G LTE and improvement in bandwith generally should mean more mobile video viewing.

Mobile video viewing appears to be additive. Mobile offers new opportunities for video viewing, as smartphones and tablets offer options in terms of both when and where content can be viewed. This plays perfectly into the increasing trend of consumers accessing more and more content on the go and on demand.

Device design also helps. Smartphones are now integrating larger screens and speedier processors. And the increasingly popular mini-tablet format is perfect for on-the-go video.

However, carriers may have a lot to say. Mobile video already accounted for more than 50 percent of global mobile data traffic for the first time in 2011 and will demand more and more bandwidth as consumers embrace it. The big question is how carriers will respond to the resulting data demands. If carriers limit data with tiered plans and high prices, mobile video’s potential could be stifled.

For more, click here.

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