Highlights
- Survey of industry professionals shows incremental handset developments are not meeting consumer demands
- Nearly half of respondents believe a zero-rated approach is crucial to driving mobile video while 5G and LTE-Broadcast will be influential
- The smartphone edges out television as the number one device for video viewing In the home according to respondents in developing countries; television is by far the preferred device in developed countries
London, UK – February 22, 2017 – Cartesian (NASDAQ: CRTN), a provider of consulting services and managed solutions to the telecoms, digital media, and technology sector, today released “The Future of Mobile Video” survey report. The study was conducted in collaboration with Mobile World Live, GSMA’s online communications hub for the global mobile industry. The study surveyed players across the mobile ecosystem worldwide and provides an in-depth analysis into current and future smartphone video consumption trends.
Although video is the biggest driver of traffic on today’s mobile and Wi-Fi networks, the survey of 370 industry professionals reveals that there are still obstacles when using phones to consume video content.
When asked about the top three barriers to consuming video while on the move, industry professionals cited battery life (74% of respondents) ahead of mobile data charges (70%) and network performance (59%). When it comes to watching linear broadcast TV, 71% say data charges are the biggest barrier, ahead of battery life (67%) and network performance (59%).
The research reveals that the key factors that will drive video consumption outside the home are improved mobile infrastructure, 5G and cheaper data plans including zero-rated video.
The reinvigorated LTE-Broadcast standard will be key to driving mobile video through 2022, according to 28% of respondents, ranking it higher than faster speeds and availability. In terms of service developments, a zero-rated approach is considered most crucial to driving mobile video, winning 47% of respondents’ votes.
Jean-Marc Racine, Senior Vice President at Cartesian, said, “Video can be considered both a burden and an opportunity for the operator. The US is leading the way with operators investing in video convergence through acquisition, such as AT&T buying DirecTV and Verizon acquiring in AOL and Yahoo. We believe more European operators will launch zero rating services, following the popularity of services that provide free video streaming such as T-Mobile US’s Binge On service. But operators need to take a considered approach as zero-rating video comes under scrutiny under certain net neutrality principles.”
Although industry professionals across the world held similar views on mobile video generally, opinions differed in ranking devices used to watch video in the home today. The majority of respondents in developed countries (55%) cited television as the number one device for video in the home with other devices well behind: smartphone (17%), PC/Laptop (15%), and tablet (13%). However, respondents in developing countries viewed the market differently – smartphones were ranked as the number one device in the home for watching video with 35% of respondents, followed closely by television (34%), then PC/Laptop (19%), tablet (11%), and the VR device (1%) far behind.
Across all countries, however, the majority (82%) of respondents agree that smartphone video watching in the home will increase over the next five years, with no significant change in the role of television in the home.
When asked about the top three barriers to watching video in the home, 63% of respondents highlighted the audio and video experience on phones. Battery life is also a challenge (44%) but only 15% said storage limits are a barrier, reflecting the trend towards streaming. Surprisingly, given the availability of Wi-Fi is in the home, 31% said mobile data charges are a factor.
Against this backdrop, 61% of respondents believe operators are best placed to drive mobile video growth over the next five years, far ahead of video service providers (24%) and mobile device manufacturers (7%).
“There is clearly an appetite for increasing the role smartphones play in consuming video both inside and outside the home. Across the ecosystem, players are looking to operators to take the lead in growing this opportunity. We are seeing operators employing strategies to improve their networks and enhance mobile video. The winners will be the ones who offer the market the best deal first,” states Racine.
The study contains further industry insights including views on mobile video content and virtual reality.
To read “The Future of Mobile Video” survey report, it is free to download at: http://content.cartesian.com/the-future-of-mobile-video-survey-report
About Cartesian, Inc.
Cartesian, Inc. (NASDAQ: CRTN) is a specialist provider of consulting services and managed solutions to leaders in the telecoms, digital media, and technology industries. The firm offers a unique combination of sophisticated analysis, real-world experience, and in-depth industry knowledge. In 2015, Cartesian further strengthened its capability to serve the converged communications sector through the acquisition of Farncombe, a leading consultancy in TV and video. Cartesian’s clients include mobile network operators, MVNOs, equipment vendors, TV broadcasters and content distributors. The company has offices in Boston, Kansas City, London, New York, Paris, Philadelphia, and Washington.
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