(29 March 2006 6:00 pm)

MUMBAI: New research indicates that the mobile is on its way to becoming the third screen in the US.

A new study from JupiterResearch notes that 41 per cent of mobile phone users are interested in some form of video service on their handsets. The study US Wireless Forecast, 2005 to 2010 says the growing demand for video will generate $501 million in revenues by 2010, up from $62 million in 2005.

At present, only two per cent of mobile phone users in the US subscribe to some form of mobile content. However, 17 per cent say that they are interested in watching live television on their cell phones while 11 per cent indicated interest in short video clips.

The study notes that this consumer interest bodes well for the mobile industry as vendors use different business models to try and tap into this consumer demand. The challenge is not interest but rather finding the correct mix of premium content and price points that is lacking in today's offerings.

Longer term adoption will depend more on business models and content offerings than on the technology or devices. Americans are understandably not interested in paying large fees for mediocre content.