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Mobile TV to reach 500M subscribers by 2013

ABI Research predicts that there will be half a billion mobile television viewers and subscribers by 2013.

The approaching switchover to all-digital TV broadcasting in the United States and other major countries will create an opportunity for the mobile TV market, according to a new study from ABI Research. The study also found that mobile TV's revenues will reach $50 billion by 2013.

"I think it may or may not be obvious but mobile TV will become an ad platform as this service becomes more common and more and more consumers start to use mobile TV," said Jeff Orr, senior analyst at ABI, Sacramento, CA.

There's an important distinction to draw between content streamed to mobile handsets over cellular networks, and free-to-air broadcasting to mobile devices equipped with mobile TV tuners.

Mobile TV users do not value the medium properly because it has not been validated as an independent product and service. In fact it has been primarily offered at the end of a long list of more preferred mobile services.

"However, Mobile TV will soon be positioned in a more proper role as an extension of traditional broadcast TV services," Mr. Orr said.

Mr. Orr also said that mobile TV viewing will not solely be on mobile phones but also on mobile Internet devices as well, such as the iPod touch.

"I believe that once the content is available and the services launched, mobile TV will enable more classes of mobile devices that are 'natural fits' for mobile entertainment," Mr. Orr said.

ABI Research believes the timing of the market's emergence is good. As 2009 progresses, signs of economic optimism may emerge, and allow the baby bird industry to establish a foothold before the holiday shopping season of 2009.

The acceptance of mobile TV relies heavily on time and on cultural shift," Mr. Orr said. "Consumers have to willing to receive and interact with mobile content on their phones.

"Advertising and sponsorship opportunities will arise once the channel is solidified and commercially available," he said.