Report: Consumers Unwilling to Pay for Mobile

NEW YORK, September 7: A new
study from JupiterResearch has found that while 11 percent of mobile phones
will be video capable by the end of this year, just 1 percent of subscribers
will actually be willing to pay for mobile content.

The report, Video on Cell Phones, says that 25 percent of consumers are interested in
watching video on their cell phones, with live TV topping the list of
preferences. "This high level of interest demonstrates that there is
market potential," said Julie Ask, the research director at
JupiterResearch. "Service providers will need to give consumers context
for watching TV on a small screen in order to convert interest into paid
subscriptions. Given current consumer resistance to paying, the most plausible
business model for carriers to adopt is one that combines paid and ad-supported
mobile video subscriptions."

After live TV, consumers also expressed interest in watching
full-length movies, short video clips and pre-recorded television shows on
their cell phones.

"Wireless carriers must leverage the uniqueness of the
cell phone to deliver an experience that is personalized and customized for
individuals," added David Schatsky, the president of JupiterKagan.
"Doing so will generate a video service worthy of paid subscriptions as
well as advertiser attention."