Mobile TV and video usage is growing slowly, but is attracting a higher proportion of the young adult and male demographic, reports Telephia, the leading provider of performance measurement information to the mobile industry. According to Telephia, 1.5 percent or roughly three million wireless subscribers in the U.S. streamed TV or played video content on their mobile devices in Q4 2005 (see Table 1). Historical data from early 2005 show penetration of 1.4 percent.

Younger mobile subscribers, age 18-24 have the highest penetration for mobile TV and video usage, securing a 3.3 percent rate, doubling since the beginning of 2005. Overall, men are more likely to stream TV and play video content on their wireless devices than women, showing a penetration rate of 1.8 percent or more than 3.5 million wireless subscribers during Q4 2005. Female mobile subscribers who accessed mobile TV and video content over their handsets had a rate of 1.2 percent in Q4 2005, equaling 2.5 million consumers, according to Telephia.

"During this early adopter stage, audience demographics play a significant role in directing mobile companies how to best develop mobile TV and video content offerings," said Kanishka Agarwal, Vice President of New Products, Telephia. "The key for providers is to be able to understand the needs of these individual groups and supply targeted content that they will pay for."

According to Telephia, V CAST and MobiTV subscribers spend roughly $40 more per month as compared to non-TV subscribers. During Q4 2005, V CAST and MobiTV subscribers spent an average of $94 in total monthly charges in comparison to non-TV subscribers who had an average total monthly spend of $54.

"The revenue stream for mobile TV and video content is very strong and shows upward promise. The combination of price, quality, diversity of content, and handsets capable of viewing content will be instrumental in the long-term growth," added Agarwal.