Mobile Video: A Global Mass Media Revolution

Nickhil Jakatar
CEO & Co-Founder-Vuclip
Thursday, January 3, 2013
Nickhil Jakatar
Headquartered in Milpitas, CA, Vuclip is an independent mobile video and media company that serves video on-the-fly, on any device. Founded in 2008, the company has raised $27 million from Jafco Ventures, NEA and SingTel Innov8.

We all know that everything is going mobile. Mobile video is quickly becoming a mass consumer phenomenon and is going to continue to grow in popularity in the near future. A Cisco report released early in this year predicts that mobile video will generate 66 percent of mobile data traffic by 2015. Mobile video demand and thereby data usage is skyrocketing worldwide driven by four major factors: proliferation of low cost smartphones, the surge in mobile web access and bandwidth improvement, virality of mobile videos, and compelling content.

Proliferation of Low Cost Smartphones

The conventional wisdom in regards to mobile video is that someday in the near future the entire global mobile market will rise up to the consumer elite and everyone will have a high-end smartphone and 4G speeds will become global standard.

We think that the economic realities point to something fundamentally different; the continued solidification of a two-tiered mobile world. One, where there is a high-end goods market for a minority who can afford the top tier hardware and data plans, and then a mass market for the vast majority who cannot afford them. And the research supports our philosophy. According to a recent study by Ericsson, around 40 percent of all phones sold in the third quarter of this year were smartphones. Also, in October of this year, a global research firm, NPD Group forecasted that by 2016, low-cost Android handsets alone could account for up to one-third of global smartphone shipments. More mobile devices mean more mobile video consumers, and more mobile video consumption.

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