J'son & Partners Consulting presents main finding of the research «Mobile Video Market Overview, 2009-2015».
Mobile video market in Russia
In this study mobile video is defined as any video content exception of mobile TV service and downloadable videos that users can view on their mobile devices, using internet access.
The notion of mobile device includes smartphones, tablets, and phones with web-browser with the ability to play video, or capable of supporting applications for online video.
Internet access means the use of Wi-Fi, 3G and other standards of mobile Internet access.
Mobile video viewing through mobile devices includes both its play through a web browser, or using specialized applications.
The report examined both services of paid video and services with a free distribution model (advertising monetization model).
Mobile TV, operator (and other) services to download video aren’t included in the study.
Development of mobile video in Russia is one of the main trends in the market of mobile content. Thus, in 2011 the audience consisted of 8.3 million people, which is 219% more than in 2010. By 2012, experts expect an increase in the number of viewers to 19.7 million.
The main driver of this growth will be the development of adjacent markets (markets of smartphones and tablets sales) as well as the deployment of 4G LTE networks in Russia. For three years (from 2009 to 2012) mobile video audience has grown by 39 times. The largest proportion is represented by mobile phone users - more than 80% of the audience. The structure of the market in retrospect and forecasts for the coming years will be examined more thoroughly.
According to J'son & Partners Consulting estimations, in 2011 the market size of mobile video was nearly $ 25 million. At the end of 2012, its size is estimated at 65 million dollars.
Thus, market growth rate for the period 2011-2012 reached 59.8%, which is higher than the analogue indicator of mobile video audience (37.3%). This is evidence of the ability of developers, owners and other market participants to adopt and adapt quickly the experience of foreign countries on the use of business models of content monetization.
Mobile video will not replace other means of video viewing. On the contrary, this segment is an additional driver and creates new opportunities for video viewing. Shift toward mobile video is seen as a part of broader direction from traditional TV to video-on-demand, which allows users to have more control over viewed content.
Currently mobile devices offer more and more options and features, depending on when and where the viewer wants to watch video content. Videos can be watched on the tablet, lying in bed or sitting in a cafe. Smartphones and mini tablets allow users to watch television sitcom or music video, waiting for a bus at the bus stop.
Mobile video market in the USA
In accordance with eMarketer and HotelMarketing, mobile video audience in the U.S. rose by 167% to 80 million viewers in the last two years.
Mobile video market trends in the United States of America:
• In the U.S., the total number of users of tablets and smartphones is already much higher than
the number of PC users;
• Over the past two years 75% of mobile phone sales are smartphones;
• More than 50% of the population has a smartphone, one-third of the adult population uses the
• In 2015, more people will use Internet without a personal computer (only on mobile devices);
• The following year, one billion smartphones will be sold in the world - more than the number of
sold TVs, radios and computers together.
Drivers and barriers of mobile video market
The following factors can be referred to the market drivers:
1. The increase in sales of smartphones and their share both in the total sales of mobile phones and
the number of mobile phones possessed by people;
2. The growing demand for tablet devices, emergence of new subsegments such as mini-tablets,
which increases the penetration of mobile terminals in the world, and Russia;
3. Changes in design, improved functionality, increase in the speed of the processor, improving
mobile software generates more opportunities for mobile video viewing;
4. Increase in the capacity, development of high-speed wireless 4G LTE networks change mobile
the culture of video consumption through video viewing improvement, contributing to a more
comfortable viewing of mobile video through any device.
Barriers for the market development may be associated with problems of deploying wireless 4G LTE networks:
1. The relatively low (compared to the leading countries - the U.S., Japan, South Korea) penetration
of 4G LTE technology. By the beginning of 2013 the LTE network was deployed in more than two
dozen Russian cities, and almost all of them (except for small networks TD-LTE in Moscow) are
owned by infrastructural operator "Scartel" (brand Yota). "MegaFon" provides services on Yota
network as a virtual operator (MTS provides services on a similar MVNO basis in Kazan). Active
deployment of LTE in the country will begin this year - after the "big four" (MTS, "MegaFon",
"VimpelCom" and "Rostelecom") will begin to implement FD-LTE technology on frequencies
obtained in the competition in 2012.
2. Lack of mobile devices that support 4G LTE
3. High tariffs for high-speed Internet access based on 4G LTE technology
4. Low coverage of 3G networks. The introduction of new networks generations should have
successive character. Thus, for the effective commercial 4G implementation is necessary to
ensure the operation of 3G-networks at a high level of qualitative characteristics and potential
Forecasts of the Russian market of mobile video
Analyzing adjacent markets (wireless broadband, sales of smartphones and tablets), both in Russia and in the world foreign researchers and J'son & Partners Consulting experts predict positive trends in each of them. Thus, the Russian market is expected to increase the penetration of LTE to 10% by the end of 2015, the number of available smartphones will reach 63 million units, and the number of tablets in the hands of the population will reach 12 million units. The global number of available smartphones will be.
As a result, the active development of adjacent markets will favorably influence the mobile content market, mainly in the segment of mobile video. According to Cisco forecast, global mobile video traffic will rise to 5 million terabytes by 2015, surpassing 70% of the total mobile traffic in the world.
According to J'son & Partners Consulting forecasts in 2015 the Russian market of mobile video will reach $ 344.8 million dollars, demonstrating the increase of 56% in 2014.
Contents of the full report «Mobile video market overview, 2009-2015»
1. Mobile video market in Russia – market overview
2. Comparative analysis of platforms and mobile video delivery technologies: the
advantages and disadvantages, the characteristics of major market players
2.1. Web platforms
3. Business models and methods of monetization of mobile video (Shareware (advertising)
model, the subscription model, PPV model): use of business models, key players
on the Russian market
4. Structure of the market, participants, changes in distribution models of mobile video
5. Leading companies of the market and providers of mobile video: features, advantages and
5.3. Providers of online video and VOD for mobile platforms
6. Development of mobile video in various regions: USA, UK, Germany
7. Market size and dynamics in Russia and the world, 2009-2012
8. Forecasts of mobile video market, 2013-2015
8.1. Development of mobile video in the world, 2013-2015
8.2. Development of the Russian market of mobile video, 2013-2015
8.3. Drivers and barriers of the market
9. Adjacent markets, 2010-2015:
9.1. Wireless broadband communication in Russia and the world
9.2. The market of smartphones in Russia and the world
9.3. The market of tablets in Russia and the world
List of Figures:
Fig. 1. Mobile video audience in Russia, 2009-2012
Fig. 2. Proportion of users of applications or browsers among smartphone owners, 2010-2011
Fig. 3. IVI Mobile version
Fig. 4. TVIGLE Mobile version
Fig. 5. RUTUBE Mobile version
Fig. 6. NETFLIX Mobile version
Fig. 7. BBC Mobile version
Fig. 8. YOUTUBE Mobile version
Fig. 9. YOUTUBE Mobile application
Fig. 10. IVI Mobile application
Fig. 11. TVIGLE Mobile application
Fig. 12. RUTUBE Mobile application
Fig. 13. NETFLIX Mobile application
Fig. 14. BBC iPlayer Mobile application
Fig. 15. STREAM Mobile application
Fig. 16. Contextual advertising
Fig. 17. Video advertising
Fig. 18. Subscription model
Fig. 19. PPV model
Fig. 20. Previous model of mobile video content distribution in Russia
Fig. 21. New model of mobile video content distribution in Russia
Fig. 22. Mobile video audience in the United States, million people, 2010-2012
Fig. 23. Mobile video audience by browsers and applications in the United States, million people, 2012
Fig. 24. Mobile video audience in the Great Britain and Germany disaggregated by paid and free services, 2012
Fig. 25. The global mobile video traffic, 2009-2012
Fig. 26. Mobile video share of total online video viewing time in the world, by smartphones / tablets, 2012
Fig. 27. Long video share in the structure of mobile video viewing from a smartphone screen, 3Q 2011 - 2Q 2012
Fig. 28 Mobile video audience in Russia by smartphones / tablets, 2009-2012
Fig. 29. The Russian market of mobile video in monetary terms, $ million, 2009-2012
Fig. 30. The forecast of global mobile video traffic, 2013-2015
Fig. 31. The forecast of mobile video audience in Russia, by smartphones / tablets, 2013-2015
Fig. 32. The Russian market of mobile video in monetary terms, $ million, 2013-2015
Fig. 33. LTE subscriber base in Russia, million, 2011-2015
Fig. 34. LTE subscriber base in the world, million, 2011-2015
Fig. 35. Smartphone market in natural terms in Russia, mln units, 2010-2015
Fig. 36. Smartphone market in natural terms in the world, mln units, 2010-2015
Fig. 37. Tablet PC market in natural terms in Russia, mln units, 2010-2015
Fig. 38. Tablet PC market in natural terms in the world, mln units, 2010-2015
List of Tables:
Tab. 1. Comparative characteristics of mobile applications and web sites
Tab. 2. Use of business models be the participants of the Russian market of mobile video
This Information Note is Prepared by J’son & Partners Consulting, We strive to provide factual and prognostic data that fully reflect the situation and are available to us before issuing the material. J’son & Partners Consulting reserves the right to revise the data after publication of new official information by the market players.
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