According to research conducted by new media research firm Interpret, Apple’s iPhone has the potential to be a catalyst for growth in mobile video usage, among both iPhone owners and owners of regular cell phones. Despite owning their new iPhones for a short period of time, 63% of iPhone owners have already used the widescreen-enabled device to watch video (compared to only 28% of regular cell phone owners). Half of iPhone owners (51%) have watched a YouTube video on their phone, while 46% have watched a music video, 34% watched the news, and 32% have already watched a movie trailer.
The study shows that it’s not the consumers who are different, it’s the iPhone – prior to buying the iPhone, few owners had watched video on their cell phone (only 17% had seen YouTube clips, 21% had watched a music video, 16% had seen the news, and only 15% had watched a movie trailer on a phone).
“Apple has already made a name for itself as a top destination for music and video on-the-go, and consumers expect the iPhone to deliver on that reputation,” said Jason Kramer, Chief Strategy Officer, Interpret, in the press release. “Consumers want to watch video on their cell phones, but they have high expectations for the experience. The iPhone shows consumers that the potential is there to meet or exceed their expectations for mobile video.”
The study also shows how the iPhone could have a “halo effect” for mobile video, even among non-owners. Only 28% of non-iPhone owners have ever watched video on their cell phone, and interest in watching video on their current phone is not strong. One-quarter or fewer are interested in watching music videos (25%), TV shows (25%), movies (24%) or video clips like on YouTube (24%). However, after seeing a 2-minute video about watching video on the iPhone, nearly three-quarters (73%) of non-owners say they are interested in watching video on an iPhone, and 42% say they are “extremely” or “very” interested. Further, widescreen video is a compelling selling point for the iPhone – half (50%) of non-owners who are open to buying the device say that seeing the iPhone’s video capabilities makes them more interested in buying one.
“What’s surprising is how wide open the market for mobile video is right now,” added Kramer. “The iPhone is definitely raising consumer awareness, but there are other players to watch, like Verizon and LG’s VX9400 Mobile TV phone. Consumers are remarkably open to who delivers mobile content to them.” A majority of both iPhone owners and non-owners consider carriers, broadcast and cable networks, movie studios, and Internet portals appropriate sources for mobile video. iPhone owners and non-owners have some different expectations as to who will provide their mobile entertainment – 73% of iPhone users expect to get it from iTunes (compared to 43% of non-owners), and 46% of non-owners expect to get it from their cable or satellite company (compared to 37% of iPhone owners).
According to the survey, 66% of iPhone owners and 73% of non-owners said they prefer to watch content for free, with ads. One-third of iPhone owners (34%) would consider a monthly subscription model (compared to only 21% of non-owners) and 28% would consider pay-per-download (compared to only 20% of non-owners).
“In order to fully capitalize on the opportunity for mobile video, Apple and its competitors will need to move beyond a pay-per-download business model,” said Michael Dowling, Interpret’s CEO, in the press release. “Consumers are used to an ad-supported model for video, and are open to a wide range of advertising if companies like Apple can deliver on the user experience.”
The survey was conducted online among a representative sample of 1,000 cell phone users, including 200 iPhone owners and 800 non-owners.
• Survey was conducted last Friday-Tuesday (July 6-10, 2007).
• Nationally-representative sample of cell phone users ages 13-64.
• To obtain a representative sample of iPhone owners, potential respondents were randomly chosen from four major online research panels and data was statistically adjusted for survey response bias.
• iPhone owners had to triple-verify ownership of the device.
• Non-owners were required to own a working cell phone, have current service, and be the primary/joint decision maker in making new cell phone purchases.
• US Census estimates were used to insure that the overall sample was representative of all US cell phone users ages 13-64.
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Tell me something I don’t know!
The carriers are going to miss the point of this — again! Yes, we’re interested in video on the iPhone, but that doesn’t translate into an interest in seeing it on a smaller screen piece of junk that is difficult to use. Television didn’t really catch on until it became easy to use, and video on the iPhone is popular because it’s easy, not because it’s video.
Which means that MPEG4/QuickTime and H.264 Codec have the potential to become the dominant standard for mobile video.
I would however like to see a survey of iphone owners who have rented video content from itunes against their experience of popping down to a lender like Blockbuster.
Value for money, ease of choice, ease of returning content or dvd, time saved, how many people watched the film, as in was an Apple Tv accessed by the iphone? etc.
Just so that we can all judge whether there are any real savings to be made by avoiding late return penalties (if you are ill and cannot return it)
If the family could all watch content from the iphone together via a medium such as tivoli or Apple Tv.
There is an awful lot to explore in relation to Great Expectations of the iphone that I cannot help but feel that at this time, analysts are jumping the gun in order to appear to be at the forefront of technology!
I have about 50 short clips from DVDs, and personal video (diving) on my iPhone. When I give an iPhone tour to a newcomer, it’s the video that always grabs them.
Nothing like HD sharks in your hand.
@ Crabapple: You can’t rent video from iTunes. You can buy it, though.
I agree, Crabapple. The other cell phone makers are drooling over this because they think they can ape the iPhone and fool customers into using their products/services instead. They have failed to learn from history. What happened to the products that tried to deliver a second-rate “me too” iPod? Apple is doing it again.
Okay, so maybe this might not be so obvious to all the other cell phone users out there but for Apple users this is one article for the DUH file.
@ Woody (I hope not the Wood Pecker!) or (Woody as in permanent Hard-on! ha! ha!!!) Sorry I couldn’t resist my base instincts.
Apple had announced at some stage that the history of the video platform had been established on the rental platform. So customers are used to hiring & returning DVD’s et al. TV programs were never available permanently until several years down the road when the studios wanted to maximise on a series popularity. There for unlike the music platform were ownership of the Record, cassette, CD without DRM had been long established, Apple were not of the view that films could be sold under a similar format, since virtually all DVD’s have always had some form of DRM. Hence Mr. Jobs floating the idea of renting a film for a week or two at which point it would be deleted from your iphone or videopod, how many times you watched the film was not going to be a factor.
This platform was going to be available on the Apple Tv as well.
Don’t forget, Mr. Jobs is the biggest individual shareholder at Disney inc and he is not likely to bite the hand that feeds him, is he?
Unfettered: Having YouTube convert its content to H.264 will only speed the process. Hopefully my employer will soon see the light and ditch WMV.
“In order to fully capitalize on the opportunity for mobile video, Apple and its competitors will need to move beyond a pay-per-download business model”
Where have I heard this before?
It’s well known that money makes people free. But what to do when somebody has no cash? The only one way is to receive the personal loans and student loan.
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