Mobile Video subscriptions surge

The popularity of video and Internet TV is proliferating to the mobile! About 8.4 million wireless customers in the U.S. now subscribe to mobile video, reports Telephia – that’s 4% of all U.S. mobile subscribers. In the first quarter of 2006, there were 3.3 million mobile video subscribers, and in the first quarter of 2007, this number had grown to 8.4 million, signaling a Year-over-Year growth of 155%. This is starting from a very low number, but it’s still very decent growth. Mobile video revenues in the U.S. totaled $146 million in Q1 2007, growing 198 percent year-over-year.

In comparison, mobile music, which includes realtones, ringtones and full-track music, is a $239 million per quarter business in the U.S. Mobile music has been around for 3-4 years and music subscriptions grew 42% during the same period, from 19 million subscribers who downloaded some form of audio on their mobile devices to 27 million.

More interestingly, the survey has found out that nearly half of the mobile video subscribers were willing to put up with view ads on their cellphones – that should be very good news for the likes of Google/YouTube and other video providers.

Recent agreements between wireless operators and video content providers, such as this between Veoh and Verizon Wireless and this will further increase interest in mobile video. Of course, a compatible wireless device is required to view video on mobile phones.