TDG - October 31, 2005

While research continues to suggest that there is a sizeable long-term market for mobile video content, the key to success in the early market is identifying the specific content and payment structures likely to appeal to early adopters, according to a new research report and complementary white paper by The Diffusion Group analysts. ``There is an abundance of research suggesting that consumers are `interested` in viewing video on their mobile phones. But this data only tells part of the story,`` said Dale Gilliam, director of primary research at TDG.

``It is not simply a question of general interest; rather, it is a question of what percentage of consumers would actually pay to receive such a service -- making this determination is the real challenge,`` continued Gilliam.

TDG`s research found that both general interest in and proclivity to purchase mobile video services varies relative to the types of content offered. In fact, knowing which content offerings to offer specific groups of consumers will actually increase the likelihood that these consumers will sign up and pay for the service.

``Securing a wide range of brand-name content will no doubt help to attract new users,`` Gilliam continued. ``Focusing on breadth of content over high-quality targeted content, however, would be a huge mistake, a move that could dilute the quality of those efforts that stand the best chance of success.``

Market segmentation and targeting will be critical for vendors hoping to profit in the early market for mobile digital video.

``As with any new entertainment technology, the success of mobile multimedia ultimately depends on the quality of content,`` said Michael Greeson, President of The Diffusion Group. ``Securing a wide range of brand-name content is no doubt important for mobile video and has thus been the primary focus for service providers. The danger, however, is that focusing on breadth of content may dilute the quality of those efforts that stand the best chance of success. For example, only certain types of content will appeal to certain age groups, and only specific segments within these age groups are willing to pay for specific types of content. It`s more than just a matter of offering interesting content -- it`s about offering the specific form of content most compelling to those most likely to pay for such services.``

Free white paper

TDG`s latest topic paper, Mastering Content in the Mobile Video Market, highlights data from August 2005 interviews with more than 2,100 US mobile phone users regarding their usage of and interest in a variety of mobile multimedia platforms and services including mobile phones, portable multimedia players, and portable gaming devices, as well as a variety of associated services.

About the market research report

TDG`s latest primary research initiative, ``Understanding the Market for Mobile Multimedia Devices & Services``, features August 2005 interviews with more than 2,100 US consumers regarding their usage of and interest in a variety of mobile multimedia platforms and services including mobile phones, portable multimedia players, and portable gaming devices, as well as a variety of associated services.

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