Big Future Looms for Small-Screen Video Content

Whether via the iPod, PSP, or your mobile phone, there's more and more video hitting mobile handheld devices these days and with the content coming both from industry giants and individuals around the world through podcasting, "shows-to-go" are just getting started.

Industry analysts have credited experimentation by large content holders resulting in legal mobile video, and the popularity of portable media players for the increased supply of mobile format video. Still, they indicated the killer mobile video app has yet to materialize, despite the different efforts and investment that is increasing.

"There are going to be a lot of different models," Jupiter Research Vice President Michael Gartenberg told MacNewsWorld, referring to subscriptions, rentals and downloads of video. "They're in search of something that will work as well as 99-cent downloads did for music."

Real Demand

In addition to announcements for mobile video from the likes of ABC, NBC, TiVo (Nasdaq: TIVO) and others, consumer research shows signs of strong interest in mobile video content, according to Gartenberg.

He said inhibitors such as lack of legal content and the complexity of moving media from one format or device to another were being addressed. Perhaps more importantly, existing video content heavyweights were producing their video to make it more mobile friendly from the get-go, the analyst added.

"People are going to great lengths to put their video in a format that is compatible with conversion to smaller screens," he said.

Gartenberg said there is a lot of video content that is readily available, yet the market continues to be a fertile one.

"There's definitely pent-up demand," he said.

Taken Along by Tech

Gartner (NYSE: IT) research director Michael King said the increased experimentation and announcements around video content for smaller, mobile screens is largely a case of technology forcing the hand of content owners.

He said devices from Apple (Nasdaq: AAPL), Sony (NYSE: SNE), Samsung and others were among a "boatload of devices with good screens and lots of memory," adding that the increased content is likely to continue growing.

"I think the content rush we're seeing is very much the tip of the iceberg," he said.

Video of the People

While the larger content holders such as movie studios and major television networks are looking to shrink their content down for the mobile video demand, smaller players are creating their own content, which may not reach as many viewers, but is nonetheless on the rise.

King said the "self-created content" benefits from lack of copyright/digital rights management (DRM) issues, and lack of a need for a successful revenue model.

However, Gartenberg pointed out that while the video iPod, PSP and other such devices may be providing a vehicle for such homegrown video, creating good content is not easy.

"What people realize is that making quality video and audio is difficult," he said.

IPod and Eye Pain

Nevertheless, Gartenberg said the popularity of the iPod, which he described as the most popular consumer device, and its new video capability are likely to help drive the mobile video market forward in a significant way. He added that with consumer interest in mobile movies even greater than interest in mobile TV shows, the smaller silver screen may be another driver.

King, on the other hand, said the market may be significantly hindered by two things: lack of content, and the limitations of a small screen.

"There's been a lot of hype and less usable stuff," he said.

While he was skeptical of consumer willingness to pay for video content, King added there may also be user experience issues with video, and particularly movies, on the go.

"It terms of how much time are people willing to stare at a two-inch screen, that is a good question," he said. "It's painful. It hurts. It's lame."