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The population of mobile video viewers in the US will grow nearly 30% in 2010 to reach 23.9 million, according to eMarketer’s forecasts. The still represents a reach of only 7.7% of the total population and less than 10% of mobile phone users, but those numbers are set to double by 2013 and increase still further in 2014.
The number of mobile video viewers, which includes people of any age who watch video content on mobile phones through mobile browser, subscriptions, downloads or applications at least once per month, will continue growing in the double digits for a compound annual growth rate (CAGR) of 22.8% from 2009 through 2014.
“Video is in many ways the most fragmented of the three primary mobile content categories,” said Noah Elkin, eMarketer senior analyst. “Video consumption on mobile phones can take place through various channels, including paid and free applications, mobile websites, pay-per-view downloads and subscriptions through mobile carriers.”
The quality of the viewing experience and the cost associated with subscriptions have historically impeded the growth of mobile video. But with the steady improvement of devices, the increase in mobile broadband availability and the emergence of viewing options outside the carrier networks, the mobile video audience is set for expansion.
The increase in the mobile video audience combined with the ongoing digitalization of media spells opportunity for producers of video content. eMarketer predicts that mobile video revenues, including direct downloads, subscriptions and ad-supported video, will roughly triple between 2009 and 2014, rising from $436 million to $1.34 billion.
Of these three primary revenue streams, the ad-supported component will be the fastest growing, much as it is in the online space. Ad-supported mobile video revenues will post a 60% CAGR between 2009 and 2014.
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