Half of Subscribers to Video Cell Phone Services Never Use Video Capabilities

Groundbreaking study of mobile video also shows that almost 90% of mobile video downloaders would watch a commercial for free content

Menlo Park, CA; July 11, 2006: A new Knowledge Networks study has found that 50% of those who subscribe to video cell phone services – and 30% of video iPod® owners – never use these devices for viewing video. The study also revealed that 88 percent of people who download mobile video would watch a commercial in exchange for free content, and that laptop computers are actually the most commonly used devices among those who view mobile video.

The new report, How People Use® Mobile Video, is part of the ongoing service The Home Technology Monitor™, which combines annual nationwide surveys of media technology ownership with special reports on key devices and services. These special reports are based on Knowledge Networks/SRI's exclusive How People Use® media methodology, a proven technique for studying the quality of media exposures, including engagement.

Based on a large-scale quantitative survey – conducted among homes with broadband Internet access – as well as in-depth ethnographic research, How People Use® Mobile Video measured

• where mobile video is used,
• what sources of video viewers rely on,
• satisfaction with mobile video devices, and
• perceived effects on regular television (TV) viewing.

In addition, those without mobile video devices were surveyed about their degree of interest in the technology and their reasons for wanting or not wanting the devices and services.

The study found that consumers are usually not purchasing video cell phones and video iPods® for their mobile video capabilities. Using the data in this study, we can project the proportion of video iPod® or video cell phone owners who actually watch video on either of those devices to be just 3 percent of the 13-54 broadband population, whom we would normally consider to be technologically oriented.

The study also shows that, even among those who actually subscribe to one of the three major video service providers for cell phones – paying extra to have mobile video available to them – only 50% are actually using that capability. Consumers questioned for the study were carefully screened to confirm that they actually have video cell phone service or a video iPod®.

By contrast, the proportion of laptop video users projected to the 13-54 broadband population is closer to 17 percent. The study found that, among those who use laptops for downloading or streaming video:

• 77 percent watch streaming video, and 61 percent have downloaded video for later viewing,
• 23 percent who have downloaded video for later viewing have paid for the video content,
• 88 percent of people who download mobile video would watch a commercial in exchange for free content, and
• 89 percent of people who watch live streaming video would watch a commercial in exchange for free content.

"The buzz in mobile video may be around iPods and video cell phones, but laptops are actually trumping those super-small screens when it comes to real-world usage today," said David Tice, Vice President of Client Service at Knowledge Networks/SRI and Director of The Home Technology Monitor. "Even among those who have gone out of their way to obtain mobile video service, use of this capability is still not prevalent. This suggests that either consumers do not really have the time for viewing mobile video, or comfort with the technology is still embryonic among early adopters, not to mention mainstreamers."

Knowledge Networks delivers quality you can use - superior methodologies, design, and analysis that give you an edge when it comes to making smart, safe business decisions. KN's unmatched consumer research resources include the only projectable Web-based consumer panel. The company leverages its expertise in brands, media, advertising, and analytics to provide insights that speak directly to clients' most important marketing issues. In addition, Knowledge Networks has built a substantial practice in government and academic research, an area notable for its rigorous methodology standards.

In 2001, Knowledge Networks acquired assets and expertise from Statistical Research, creating Knowledge Networks/SRI. KN/SRI is one of the country's leading authorities on consumers' use and ownership of media and technology. The company is the leading measurement provider for Yellow Pages directories; other specialties include cross-media allocation ("MultiMedia Mentor"™) and studies of consumers' interactions with media ("How People Use"® research).