JupiterResearch Finds That Consumers Do Not Want To Pay For Mobile Video

NEW YORK--(BUSINESS WIRE)--Sept. 7, 2006--JupiterResearch, a leading authority on the impact of the Internet and emerging consumer technologies on business, finds that while consumers are interested in watching video on their cell phones, the majority of mobile subscribers are not willing to pay for it. According to a new JupiterResearch report, "Video on Cell Phones," eleven percent of mobile phones will be video capable in 2006, but only one percent of mobile subscribers will pay for a subscription this year.

Overall, twenty five percent of consumers are interested in watching video on their cell phones, with live TV topping the list of preferences.

“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.”

"This high level of interest demonstrates that there is market potential," said Julie Ask, 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 express 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," said David Schatsky, President of JupiterKagan. "Doing so will generate a video service worthy of paid subscriptions as well as advertiser attention."

The complete findings of this report are immediately available to JupiterResearch clients online at www.jupiterresearch.com. For details on JupiterResearch's methodology visit www.jupiterresearch.com/bin/item.pl/methodology or email [e-mail] to request a detailed methodology statement. For additional information on this report or JupiterResearch's Wireless research service, visit www.jupiterresearch.com or contact Kieran Kelly, Senior Vice President of Global Sales and Client Service, at 1-800-481-1212 or [e-mail].

About JupiterResearch

JupiterResearch provides unbiased research, analysis and advice, backed by proprietary data, to help companies profit from the impact of the Internet and emerging consumer technologies on their business. The company helps online businesses make critical decisions about technology selection, spending, staffing, and Web site effectiveness; advises consumer-facing companies with online advertising, marketing, and customer service strategies to understand, attract, convert and retain customers; and guides technology vendors and service providers on market opportunity, positioning, product definition, and pricing. JupiterResearch is headquartered in New York City and has offices throughout the US and Europe. For more information, visit www.jupiterresearch.com. JupiterResearch is a division of JupiterKagan, Inc.

About JupiterKagan, Inc.

JupiterKagan, Inc. was formed in 2006 from the merger of JupiterResearch and Kagan Research, two companies providing thought leadership, research and advice in the domain of the media and telecommunications, Internet, and emerging consumer technologies. The company's deliverables include continuous information services (available by subscription), research reports, data, inquiries with research analysts, appraisals, litigation support and consulting. JupiterKagan operates from six offices in the United States, United Kingdom, France and Germany. For more information, visit www.jupiterkagan.com.