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NSR warns that profits remain scarce despite exponential growth of mobile TV user base
Oct 7, 2008 8:00 AM
NSR’s updated report, "TV and Mobile Video, 2nd Edition: A Complete 360-degree Analysis,” on the converging telecom and entertainment environment indicates that a confluence of trends will drive significant growth for mobile TV, but a number of factors will prevent the sector from fully reaching its revenue potential.
The report projects that broadcast and unicast mobile TV and mobile video services will grow almost ten-fold from an estimated user base of more than 57 million at the end of 2007 to 566 million users in 2013. Much of that growth will come from free broadcast services and unicast video that is part of broadcasters' distribution deals, 3G network expansion, user-generated content and mobile Web social networking integration.
Global service revenues — subscription, advertisement and transactional revenue — are projected to reach $9 billion by 2013. Because free broadcast services and ad-supported video are expected to proliferate, advertising revenue will grow the most. However, NSR emphasizes that mobile advertising is still embryonic — so much so that in 2013, mobile TV advertising revenue will still not have reached its full potential.
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