Mobile video to spike with 5G

Mobile video to spike with 5G
Michelle Clancy
| 05 September 2018

The move to active mobile video offerings will grow as entertainment bundling with mobile services becomes a must, according to the 2018 Economics of Mobile Programming Report by Kagan.

mobile video 5 sept 2018The analyst says that North American and Asian markets lead the charge in a shift to active mobile video markets. In both the Asia-Pacific and North/South American regions, 86% of operators offer mobile video services, followed by 71% in the Mideast and Africa region.

On the 5G front, Verizon and T-Mobile in the US are both poised to launch new mobile video services that may mirror AT&T’s initial digital video offerings, DIRECTV NOW and WatchTV.

Of the 159 global mobile operators reviewed in the report, 64% offer a mobile video-service directly or via partnerships. Europe has the fewest mobile video services available at a mere 28%, due in part to concerns over net-neutrality rules. Mobile video services in Europe are most prevalent in markets where competition among operators is highest, the report found; there, carriers looking to attract new customers offer access to mobile video or OTT services at discounted rates for a period of time. These types of value-added services are uncommon in countries where competition in the mobile industry is less intense.

“As 5G moves forward, over the next decade consumers will increasingly make a choice between wires versus wireless for home broadband,” said John Fletcher, principle research analyst with Kagan parent S&P Global Market Intelligence. “And mobile network operators are already bundling video services alongside mobile phone services to not only retain existing customers but to position themselves as a future one-stop shop for home broadband and video services.”