According to the latest market study by ABI Research, video communications and online messaging services over mobile networks were used by fewer than 47 million subscribers at the end of 2011, but will grow to reach 390 million users in 2016. Mobile network operators once regarded video communication as the likely successor to voice communication and a source of potential new revenue, but their expectations are now more realistic. Free alternative video chat offerings will always be available, which requires the service providers to offer substantive value-added offerings that are likely to generate revenue. That said, challenges remain in the marketplace. "Only a small minority of consumers are willing to pay a premium price for video calls," says senior analyst Aapo Markkanen at ABI Research . Video services will be monetized by their bundling with other communication media, promoting premium features to enterprises, and/or delivering advertisements. But could ope...
TMT Market Research and Analysis