Early Mobile Video Market Adoption

While research continues to suggest that there is a sizeable long-term market for mobile video content, the key to success in the early market is identifying the specific content and payment structures likely to appeal to early adopters. According to The Diffusion Group's most recent primary consumer initiative, market segmentation and targeting will be critical for vendors hoping to profit in the early market for mobile digital video.

"As with any new entertainment technology, the success of mobile multimedia ultimately depends on the quality of content," said Michael Greeson, President of The Diffusion Group. "Securing a wide range of brand-name content is no doubt important for mobile video and has thus been the primary focus for service providers. The danger, however, is that focusing on breadth of content may dilute the quality of those efforts that stand the best chance of success. For example, only certain types of content will appeal to certain age groups, and only specific segments within these age groups are willing to pay for specific types of content. It's more than just a matter of offering interesting content - it's about offering the specific form of content most compelling to those most likely to pay for such services."