Video messaging to bring in $17 billion by 2012

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Mobile cameraThe upcoming BlackBerry OS might be packing streaming video support, but the real moneymaking could be in video messaging. A recent report from ABI Research forecasts $17 billion in revenues from video messaging and telephony services by 2012. RIM’s still getting their feet wet in multimedia devices, and to be honest, video messaging seems a long way off. Incoming video streaming is a good start, but not only will the camera hardware have to evolve, but a network which reliably supports the data stream will also be necessary for outbound video messaging to happen. Even then, data-intensive activity like that isn’t exactly RIM’s style. The consumer angle for mobile video support is obvious (who doesn’t want a webcam on their phone?), but could video conferencing functionality make a camera more of a business-oriented feature on a BlackBerry?

Revenues from Mobile Video Telephony and Messaging Services to Exceed $17 Billion by 2012

NEW YORK – August 15, 2007 -

A growing number of mobile carriers worldwide are increasing their video messaging and telephony offerings. According to a new study from ABI Research, the market value for mobile video telephony services including video mail, video calling, and video sharing services, will grow from $1 billion in 2007 to over $17 billion by 2012, a CAGR of 74%.

However the conditions that will drive or inhibit growth of these services by region are complex. According to principal analyst Dan Shey, “The Web 2.0 phenomena and sites that allow posting of mobile video will increase demand for mobile video services. However, global demand inhibitors include income levels, messaging and video viewing alternatives, and handset capabilities. And then there is the uncertainty factor for operators of video services on network utilization which will affect their promotion and pricing strategies.”

Reflecting such complex conditions, ABI Research has created forecasts for uptake of mobile video messaging and telephony services for eight different regions of the world. According to the report, the industrialized regions of North America, Western Europe and Asia Pacific will command 90% of the video services revenues.

While only 10% of the service revenues will come from the developing regions of the world, the opportunity for video services serving customers from developed regions should not be discounted. Says Shey, “The biggest opportunity for carriers in developing world countries is with video messaging services. The mobile phone is the most common device in these regions and 2.5G networks are sufficient for this service. With more people migrating and immigrating to find work, video messaging can be the service that provides a rich form of communication for social and familial connectivity.”

ABI Research’s study, Mobile Video Communication Services provides a comprehensive analysis of the global mobile video services market. While the main focus of the report is video messaging and telephony services, video broadcast service market forecasts are also included. The report examines in detail the network and device telecommunication enablers as well as the regional differences for various demand drivers and inhibitors. It is rounded out by a review of the role and current activities of value chain participants. Market forecast analysis includes video phone penetration and shipments, and video services uptake by customer, service type, revenues, and penetration for eight different world regions.

The study forms part of two ABI Research Services, Business Mobility and Mobile Content.

Founded in 1990 and headquartered in New York, ABI Research maintains global operations supporting annual research programs, intelligence services and market reports in broadband and multimedia, RFID & contactless, M2M, wireless connectivity, mobile wireless, transportation, and emerging technologies. For information visit www.abiresearch.com, or call +1.516.624.2500.