With many video clips floating around the Web, like the 12 one-minute episodes of Borat, the mobile video is becoming increasingly popular among the consumers. However, advertisers seem too prudent, giving the film studios problems with monetization.
Another example of the successful mobile video is Warner Brothers’ six-episode series based on the popular Superman television show “Smallville.” Fox also experimented with the mobile version of the popular “Prison Break” series. Both projects had hard time monetizing the work involved, with Sprint and Toyota being the only sponsors (Sprint advertised on “Smallville”, while Toyota supported “Prison Break”).
Mobile advertising is still in its infancy. eMarketer reported that around $421 million was spent to reach the mobile phone users last year. By contrast, broadcast TV advertising was estimated at $48 billion in 2006, according to the Universal McCann media agency. Add to that that only about 5 million users are watching the videos on their handsets, a small fraction of the 195 million mobile phone subscribers nationwide, and you’ll have the complete picture.
While companies are still not that eager to advertise in the new media, film studios are continuing to experiment, but suggest that predicted explosive growth is still some time away. The upcoming Apple iPhone may be the light at the end of the tunnel for Hollywood. Its 3.5″ touchscreen may provide users with a needed comfort for watching the mobile video…
The full article titled “Hollywood Loves the Tiny Screen. Advertisers Don’t.” is available on The New York Times’ site.