Jupiter: Consumers Won't Pay for Video on Phones
Wireless carriers in the United States have launched mobile video applications, but consumers are not interested enough in the service and technical and pricing problems remain to be solved, according to the report from JupiterResearch, a division of Jupitermedia Corp., New York.
"Only 4 percent of consumers cited the ability to watch video as a priority feature for them when purchasing their next handset," said Julie Ask, research director at JupiterResearch. "Although consumer interest in mobile video is strong, the cell phone will remain a voice-centric device in the near term."
Also, the lack of network coverage, high prices for both handsets and devices and limited access to real-time content will dampen consumer interest in the near term, the report said. Video-enabled handsets cost $200 to $300, more than most consumers are willing to pay.
Of those who are interested in video on cell phones, 38 percent would be interested in video weather updates while 27 percent want local traffic updates and 13 percent would view movies.