Mobile Video Calling to be Promoted by Vendors

As consumers show more interest in video calling, vendors are releasing products that target this growing market. Recently, both Cisco and Logitech announced new hardware designed to help consumers make video calls through their HDTVs. It’s too soon to tell how the marketplace will react to those products but  consumers are clearly excited about video chat. They’ve had the capability to tap this technology through their PCs and now vendors are developing the mobile video chat market.

One popular category of video chat revenue is found in the mobile adult content and services industry, tracked by research firms like Jupiter. According to Jupiter analysts, the $1.8 billion global mobile adult content and services industry is currently driven by the download category.  Along with text services, adult downloads comprised 56% of the total revenue for the industry. By 2015, the entire industry will be worth $2.8 billion. Analysts expect that growth to be largely driven by more activity in the video chat services sector. Four year from now, the video chat sector will account for 50% of the industry or represent a market worth $1.4 billion.

While video chat has been a popular feature on services like Skype, analysts expect Apple’s FaceTime video-​calling feature will  play a role in helping the mobile technology reach a critical mass. By 2015, at least 29 million people, globally, will be video callers. At the same time, Juniper senior analyst Anthony Cox said, “the market may be held back by a lack of interoperability between different devices.”  Now that Apple has released the technology, look for competitors to begin marketing their me-​too products and for vendors who will introduce services that address the interoperability problem.

[Sources: Reisinger, don. Mobile video calling. News​.cnet​.com. 12 Oct. 2010. Web. 26 Oct. 2010; Chat to Drive Mobile Adult Revenue Growth. MarketingCharts​.com. n.d. Web. 26 Oct. 2010] 
Kathy Crosett
Kathy is the Vice President of Research for SalesFuel. She holds a Masters in Business Administration from the University of Vermont and oversees a staff of researchers, writers and content providers for SalesFuel. Previously, she was co-​owner of several small businesses in the health care services sector.