Mobile web video has seen a staggering rise in popularity over the past few years, with the result that projections now estimate that nearly 400 million wireless users will have access to mobile videos by 2016. However, with this rapid increase in demand, service providers are now being faced with the difficult challenge of finding cost effective ways of meeting this demand, while at the same time finding some means of turning a profit. Moreover, many providers are now struggling with the issue of messaging costs, as more and more consumers have begun to discover that they can get the same services for free through other carriers.
One factor that has begun to fuel this problem is services such as Blackberry Messenger and iMessage which now provide users with free text and multimedia messaging services. As a result, many consumers have now been conditioned to expect more services at a lower cost from their providers. Providers are now being further strained as these same expectations are becoming a problem with mobile video as well, as it takes on an ever more important role for users.
Already, service providers have begun to explore various solutions to the problems presented by the rising demand for mobile web video. One such solution being explored is the use of a multi-tiered video service. This would mean that all consumers would be provided with the most basic level of service for free. From that point, revenue could still then be produced through the placement of ads as well as by offering upgrades and advanced features both to businesses and more video heavy users.
Such a strategy has only recently become feasible through the application of certain technological advances which would allow for a cost effective means of supporting consumers' free use. For those providers without this means, analysts have begun to speculate that one viable way in which video messaging could be made profitable is if service providers tie video usage in to their service packages. This may not be to dramatic a process, as many carriers have already been forced to adapt their services to meet increases in data usage and messaging by offering new plans.
In contrast to merely a few years ago, text messaging has become a necessity among most consumers, and is now viewed as a vital piece of any good service plan. Such is the progress of mobile video as well, so that, in just a few years' time, video too will be an essential component. With ever more rapid advances being made in mobile technologies, such as the advent of the 4G network and its compatible devices, new doors are being opened daily for the progress of mobile video services.
In order to keep up with the rapid growth of mobile web video, one way or another, providers will be forced to find new ways of offering these services to their users, be it through the introduction of new, more sophisticated plans or cleverly designed multi-tier strategies. Video use is on the rise and those companies who fail to recognize and adapt to this shift in demand will fall by the wayside in coming years.
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