Mobile Customers Predict Significant Rise in Mobile TV and Video Usage by 2010

BARCELONA, Spain-(Business Wire)-February 17, 2009 - QuickPlay Media, the premier provider of mobile TV and video solutions, today revealed the results of an independent Market Tools survey focused on mobile TV and video consumption in the UK. On a positive note the research revealed consumers are confident in the uptake of mobile TV and video, with 74 percent of respondents expecting an increase in usage by 2010. The survey indicates an increase in the number of consumers that have viewed mobile TV and video content on 2008’s results, rising from 41 to 48 percent. However, there are still a number of barriers preventing wide-scale adoption. Almost half (46%) of the respondents were not aware if their mobile operator offered mobile TV or video services, 50 percent were discouraged by perceived costs and 55 percent of those on monthly price plans were subscribed to voice and text services only, limiting access to mobile TV and video.

Despite the recent uptake in multimedia devices, surprisingly, 78 percent of respondents reported they do not currently own a multimedia-enabled PDA/smartphone. However, 44 percent of respondents would watch TV and video on their mobile if they owned a multimedia-enabled device. Almost half (43%) revealed that if they were to consider moving mobile operators, the operator’s ability to offer the latest multimedia-enabled device would positively impact their decision to choose that operator.

The survey also demonstrated the potential for mobile operators to increase data plan subscriptions. 44 percent of consumers agreed they would be more likely to subscribe to a mobile data plan if a set amount of basic video content was included in the package. With 33 percent of consumers already paying an additional fee for desired content, this suggests significant potential for operators to gain incremental revenues by offering hybrid pricing models, to include both free and chargeable premium content.

Consumers indicated a decline in their willingness to accept advertising in return for access to free or discounted mobile TV and video content, with figures decreasing from the 2008 response from 65 to 53 percent. This response may indicate a preference for ‘snacking’ on content, with consumers not willing to spend any time viewing adverts. This is supported by almost half (44%) of consumers stating they would be more likely to watch a full movie on a mobile device if they could pause and resume play.

“2008 saw a distinct change in the adoption and attitude of consuming digital content on a mobile phone. However, while uptake has been encouraging, there is clearly more work to do in effectively educating and selling mobile TV and video to the public to ensure wide-scale adoption,” said Wayne Purboo, president and CEO, QuickPlay Media.

“Demand is clearly present with many believing mobile will be a standard viewing platform for 2010, yet many consumers are still unaware of the types of services on offer to them. To drive growth and build revenue opportunities, pricing must be reviewed and content must be relevant. By promoting their services and aligning pricing models with customer perceived value, operators will quickly see strong results,” continued Purboo.

Reinforcing the results gathered from 2008, demand from consumers to watch mobile TV and video has grown steadily, with over half (51%) confirming their interest in mobile TV and video. Of those already watching content (48%), a third (36%) have spent 60 minutes or longer watching a movie or TV show, with 24 percent using mobile TV and video services more than once per week.

Out of those currently using mobile TV and video services, the most popular places for watching content are divided between home (33%), while in transit (22%) and in-between other activities (19%). The highest consumed types of content were music videos (36%), comedy (23%), movie trailers (22%) and sports (22%). These were closely followed by news and social media (15%).

Further interesting findings of the survey include:

Out of those respondents that already own a multimedia enabled device, a larger percentage was male (25%).
Over a quarter of respondents (27%) would sign up for mobile TV or video services to watch the 2010 FIFA World Cup.

In March, QuickPlay Media will be releasing the results of Market Tools survey focused on mobile TV and video consumption in the US. For full details on the UK survey results or further information on the upcoming US survey, please contact Doug Fraim at fama PR at (617) 758-4176 or email at quickplay@famapr.com.

About QuickPlay Media

QuickPlay Media is the premier provider of mobile video solutions for companies offering video and TV services over broadband wireless networks. The company’s proven solutions offer the fastest and most flexible way to manage, distribute and monetize mobile TV and video for mobile operators and media companies worldwide. QuickPlay Media Inc. is headquartered in Toronto, with sales offices in San Francisco and London. For more information, please visit www.quickplay.com.

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