Mobile video surging; viewers open to ads, Telephia says

Mobile television and video subscription revenues grew 198% year-over-year to $146 million in the first quarter of 2007, according to the latest data from Telephia Inc. Approximately 8.4 million wireless customers now subscribe to some form of mobile video, representing nearly 4% of all U.S. mobile subscribers.
“Within a very short time, the number of mobile video subscribers has grown to over 8 million, comparable with the average audience size for an episode of ‘The Sopranos’ this season,” said Kanishka Agarwal, VP of mobile media at Telephia.
Additionally, nearly half of the mobile video subscribers polled said they were willing to view ads on their cellphones in exchange for something of value, according to Telephia. At least 55% said they recalled viewing a mobile add in the last 30 days, which is nearly three times the recall rate for mobile data consumers in general.
“Consumers are used to seeing commercials on their TV at home, which has created a learned behavior that is transferring to mobile TV and making advertising more acceptable,” Agarwal said. “Nearly half of mobile video users are willing to view ads on the phones in exchange for something, translating into a compelling opportunity for ad-supported mobile content where marketers can target customers with relevant advertising.”
Meanwhile, revenues from mobile television and video services are quickly gaining on mobile music. Mobile music, which includes realtones, ringtones and full-track music, brought in $239 million for the quarter. At least 27 million subscribers downloaded some form of audio on their mobile devices, marking a growth of 8 million since the same quarter a year ago, Telephia reported.
Finally, nearly 29 million mobile video customers also logged onto the mobile Web last March, signaling a penetration rate of about 12%.