Increasing uptake of connected devices with faster processors and better displays will be the engine for two billion mobile and tablet users watching TV and video on their devices by 2017, according to a new report from Juniper Research.
Further boosted by the growing popularity of short and easily shared video clips and the seamless integration of streaming services with social networks, mobile is increasingly being used as the primary screen for consuming TV and video content among younger demographics. The Mobile TV & Video - Cutting the Cord report predicts that Western Europe will account for the most users in 2017, viewers in this region will represent over a fifth of the global user base.
Juniper also believes that the success online of streaming video service providers such as Netflix has led them to offer truly multiscreen experiences via smartphones and tablets, producing both positive and negative outcomes for the pay-TV business. Juniper notes the reality of significant numbers cord-cutting and ending their pay-TV services in favour of Internet streaming services.
"We are now seeing companies such as YouTube trialling paid channels to get a slice of the marketplace,” explained report author Siân Rowlands. “This will have incredible repercussions throughout the mobile space given YouTube comes preinstalled on an immense number of devices and Android's billing options.”
However, the analyst cautions that it remains to be seen whether YouTube will be successful with such a monetisation model. It notes that in 2011, similar paid channels were launched, but with very limited success, and that YouTube has seen limited success with its movie rental service given the foothold which Apple and the iTunes ecosystem has on renting movies to smartphones and tablets.