Verizon Communications, the largest wireless carrier in the U.S., announced that it plans to enter the mobile video market. Verizon’s CEO indicated that negotiations are underway to acquire rights to content for an integrated service that would let Verizon pay-TV subscribers see some content on their mobile devices. In addition to increasing Verizon’s wireless offerings, the planned service is intended to support Verizon’s proposed deals to buy spectrum licenses from cable companies Bright House and Cox Communications. Verizon believes it will be able offer video on an individual basis rather than the bundles that are the norm in the cable TV world. Pricing was not disclosed, but Verizon believes that the service could debut before the end of 2012.
In addition to the usual requirements like popular content and affordable rates, PMA believes there is another very simple step wireless carriers can take to enhance the success of their mobile video services. If the carriers offer their subscribers world class handsets with integrated projectors, like the recently introduced Samsung Galaxy Beam, users are likely to use the service far more extensively, sharing video with small to medium groups of their friends. Advertisers will eagerly pay for such audiences, further increasing profitability.
Since respondents to the ongoing series of PMA Manufacturer and End User surveys repeatedly identify video as the leading driver of the pico projector market, PMA’s projector market analysis closely follows the mobile video market.