Report: Financing Mobile Video Projects Not an Easy Task

The market for mobile TV and video is growing rapidly, but content providers are finding it difficult to finance new projects, according to a new report by Informa Telecoms and Media in partnership with peacefulfish.

Informa forecasts worldwide revenue from mobile TV and video services will rise from $2.46 billion in 2006 to $8.35 billion in 2011, but content providers vying for a share of this market face challenges.

"While mobile TV and video content is less expensive to produce than film or broadcast TV content, it still requires upfront production costs that typically run several thousand dollars per minute," said Chris Coffman, senior research analyst at Informa and author of the report. "Revenue shares don't fund the initial creation of content. The mobile TV and video sector would benefit from distributors, such as broadcasters, mobile operators and content aggregators, sharing in more of the risk."

The report said companies from both the mobile and media industries are using minimum guarantees and licensing payments to help finance projects. Content providers also rely on outside investments.

The report also suggested producers take advantage of mobile video users’ desire to watch short clips and create new formats and programs designed specifically for that format.

Informa Telecoms and Media www.informatm.com  

peacefulfish www.peacefulfish.com