Huawei has released its white paper entitled “Mobile Video Report –a Key Driver of Mobile Market Value” focusing on consumer behaviour, data pricing, networks, devices, and content drivers.
The white paper plots a Mobile Video Maturity Scorecard model to identify the strengths and priorities of the regional market for operators. It is also said to introduce global leading operators’ experience on the improvement of user experience, business model exploration and obtaining content sources, and supports operators to succeed in seizing huge video opportunities.
Video as a lifestyle: Video is dominating traffic loads on more and more mobile networks today. Principally, as a means of entertainment, it evolves through the adoption of social video, live streaming, and immersive 360 degree or VR/AR services. Video is also becoming increasingly important to users in other respects, such as a means of communication, a source of information and security, or a means of self-expression. The whitepaper writes that Strategy Analytics forecasts the population of mobile video users will double to more than 2 Billion by 2021, with 36% penetration.
“We keep seeing innovative video services coming up. For example, after Facebook started video autoplay in 2013, mobile video adoption underwent a steep change, and soon all the social networks around the world would follow suit. More recently we see live video streaming as another trend that has kept gaining momentum and competition has intensified. These new services, in addition to opening new monetization channels, are important elements in the social networks’ ecosystem. Mobile video is one of the most effective tools to increase user engagement and extend their stay inside the social networks,” said Nitesh Patel, Director of Wireless Media Strategies, Strategy Analytics.
Growth drivers for mobile video: The demand for drivers in behaviour patterns, quality of experience, and affordability, are propelling the supply factors in video-optimized devices and networks. This also drives content providers and app developers to embrace mobile video, and TMT service provider ecosystems to re-align the platform of choice for mobile video in all its forms. These supply-side factors complete the circle by further driving up demand by enhancing the quality of experience, affordability, and ubiquity of mobile video.
“The mobile video market space is huge, and it is expected to be the next ’voice’ business for operators in terms of profit contribution,” said Qiu Heng, President of Huawei’s Wireless Marketing Operation Department. “We see the world’s leading operators actively exploring video services. They are enhancing user experience through network technology innovation, increasing revenue by exploring new business models, and targeting the future by obtaining the content source. Huawei will continue its efforts to support operators to succeed in seizing huge video opportunities.”
Regional priorities for video service stimulation: While these drivers propel video to the centre of the mobile service experience, the stage of service evolution around the globe is still quite diverse. Operators will need to coordinate their product and service development to tap into the opportunity that video services offer at the appropriate moment. Markets with low mobile broadband coverage may not want to aggressively push data pricing to fuel a video boom, at this present time. However, in all regions, operators should evaluate the influence they have on all of these service drivers to ensure they are ready to exploit the mobile video opportunity as it emerges.
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