Mobile entertainment is bright spot in current economy: QuickPlay

By Giselle Tsirulnik

February 6, 2009

Mobile video is the bright spot

Despite the economic slowdown, mobile users continue to show tremendous interest in streaming and downloading mobile television and video content, according to QuickPlay Media.

This was the key finding of QuickPlay's quarterly consumer consumption analysis. The findings, compiled from Oct. 1 through Dec. 31, revealed that the number of streams viewed in the fourth quarter more than doubled from the previous quarter.

"The key finding of the usage results is that despite a weakening economy, mobile TV and video adoption continues to grow," said Tina Kaichis, director, marketing communications and channel marketing at QuickPlay, Toronto.

In the fourth quarter, QuickPlay experienced an 87 percent increase in video downloads and saw the number of video streams more than double over the previous quarter.

"This speaks volumes toward the health and growth of the mobile video industry as a whole," Mr. Hyland said.

The growth in consumption of streams can be largely attributed to the launch of popular new services, in particular YouTube content.

A decline in streams per user, which occurred over this same period, can be linked to the growing adoption of live TV services that tend to generate longer views but fewer streams.

"These results suggest that there is some opportunity for mobile marketing in the coming year," Ms. Kaichis said. "While other forms of advertising such as TV and print continue to decline, mobile marketing represents an opportunity to reach consumers in a highly targeted and personalized way.

"For example, there are solutions available that make it possible to dynamically insert ads based on videos viewed," she said.

The study found that total live TV and video streams viewed grew 118 percent from the third quarter to the fourth.

Additionally, consumers continued to show preferences when it comes to the types of content they stream and download.

Popular live TV streaming genres were news, music video programs and weather, while video streaming favorites included music and movie previews.

The positive results show mobile entertainment continues to be one of the bright spots in the current economy.

In fact, consumers remain willing to pay for high-quality entertainment services. In 2009, QuickPlay expects to see wireless carriers continuing to focus on mobile data services as it gives them an effective way to protect average revenue per user, or ARPU, by delivering added value to their cost-conscious subscribers.

For mobile TV and video services, this should result in increased promotional activity and more attractive pricing options that stimulate service trial and adoption.

Even though the downturn is expected to have a negative impact on wireless content and entertainment spending, Mr. Hyland anticipates that the industry will still experience growth, just at a slower pace.

In order to remain profitable, providers will not only increase their efforts to collaborate with technology partners to deliver engaging data, but they will also adjust their pricing and business models to encourage consumer take up.

"Companies considering entering the space should keep in mind that mobile marketing offers a great opportunity for companies to extend their brand beyond traditional methods," Ms. Kaichis said.

"It may seem daunting due to the many factors involved in ensuring a high-quality customer-viewing experience, so it is important to choose a strong partner who is able to easily and efficiently address the complexities of supporting numerous types of content, formats, devices and business models," she said.

"Many marketers struggle with how to measure effectiveness of mobile ads so it is important to select a partner with advanced reporting and analytics capabilities that enables them to measure results and adjust marketing programs accordingly. An experienced partner that is able to provide guidance with regard to best practices is also a critical success factor."