The Number One reason mobile phone subscribers will upgrade to third generation wireless services is to download, stream, and swap short videos. That is one of the conclusions of the new 105-page report, Mobile Movies: the Market for Short Videos on Small Screens.

“A large market for short videos is emerging: mobile phone and portable computer users,” said Michael Hentschel, Managing Director of Techvest International and the report’s lead author. "To succeed, wireless operators must support both professionally and user-created video content enabling diverse personal, preview, and promotional applications," he added.

Mobile Movies: the Market for Short Videos on Small Screens is the result of more than 20 in-depth interviews with operators, manufacturers, content providers, and application developers. The report includes sections on applications, markets, technical challenges, and business models. More than 50 vendors are profiled.

Mobile Movies: the Market for Short Videos on Small Screens is the sequel to Datacomm Research Company’s popular report, Wireless Streaming Media: Markets & Business Opportunities.

Additional conclusions found in Mobile Movies: the Market for Short Videos on Small Screens:

- Mobile video will gain traction in 2004 and take off in 2005. Handsets capable of playing and recording short videos are hitting the market. Third generation mobile phone and Wi-Fi hotspot services, capable of streaming live video, are rolling out around the globe. However, the supply of MPEG-4 content must rise to meet demand.

- Which is best: downloading or streaming? The answer depends on the application. Downloading requires more device memory and digital rights management (DRM) for security, but can be performed during off-peak hours to save money. Streaming is sometimes finicky but enables live video, requires less handset memory, and is arguably more secure.

- Six categories of mobile video to watch: Stay Tuned and See What I See for mobile phone service; Video Library and Video Rendezvous for Wi-Fi hotspot service; and On Location and Rent-a-Peripheral for proximity service.

- The film industry has long searched for a larger market for short videos. That market has finally been found. Short videos are perfect for informing, instructing, and entertaining mobile users. One operator has even produced short movies specifically for mobile users.

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