The Asia-Pacific mobile video services market is expected to see huge growth potential as mobile operators continue to spend millions on developing innovative services and content to arrest the declining average revenue per user (ARPU), a new report says.
Mobile TV, essentially an extension of mobile video services, in particular is seen as a new killer application that could potentially bring alternative source of revenues for carriers, reports consultancy firm Frost & Sullivan. The company said that an analysis of 12 countries in Asia-Pacific revealed that the mobile video services market generated combined revenues of over US$440 million in 2007, and this is estimated to reach US$1.88 billion by end-2013.
While South Korea remained the biggest market for mobile video in the region (outside of Japan), other potential leading markets include Singapore, China, Hong Kong, Taiwan, Australia and New Zealand.
“Amid the growing interest in triple-play and mobile advertising, mobile TV has been the buzzword in the Asia-Pacific mobile and wireless market,” said Frost & Sullivan industry analyst Shaker Amin.
Pricing however remains the biggest hurdle to a wider uptake of mobile video and TV services. In 2007, the total mobile ARPU in Asia-Pacific stood at US$16.8 (including Japan), largely due to the region’s lower disposal income.
(Source: Asia-Pacific Broadcasting Union)
