Study: Revenues for mobile video, messaging to top $17b

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%, according to a new study from ABI Research.

The ABI Research study further predicted that industrialized regions of North America, Western Europe and Asia Pacific will command 90% of the video services revenues.

However, the study added that the conditions that will drive or inhibit growth of these services by region are 'complex.'

'The Web 2.0 phenomena and sites that allow posting of mobile video will increase demand for mobile video services,' principal analyst Dan Shey said. 'However, global demand inhibitors include income levels, messaging and video viewing alternatives, and handset capabilities.'

The analyst also said there is also 'the uncertainty factor for operators of video services on network utilization which will affect their promotion and pricing strategies.'

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, he said.

'The biggest opportunity for carriers in developing world countries is with video messaging services,' he said.