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iPhone 'halo effect' boosts mobile video Apple's iPhone is already showing promise as a catalyst for growing mobile video usage, according to new research, despite being in the hands of US consumers for only two weeks. Research firm Interpret said 63% of iPhone owners have already used the widescreen-enabled device to watch video, compared with only 28% of regular cell phone owners, and 51% have watched a YouTube video on their phone. The company also reported that 46% have watched a music video, 34% watched news and 32% have already watched a movie trailer. The mobile video market is desperately in need of the kind of boost the iPhone could bring, but the situation is a bit like David Beckham trying to make soccer mainstream in the US. Interpret said iPhone could have a "halo effect" even among non-owners, of whom only 28% have ever watched video on their cell phone, but warned that interest among these consumers was "not strong." Only a quarter or fewer of non-iPhone owners are interested in watching TV shows, music videos, movies or video clips from the likes of YouTube, the research company found. It went on to add, however, that after seeing a two-minute video on the iPhone their interest was pricked, with almost three quarters now deciding they were interested in watching more on the Apple gadget. Interpret highlighted the wider problem that exists in the mobile video market, however, which is the fact that consumers are generally unwilling to spend money on such an untested experience. "In order to fully capitalise on the opportunity for mobile video, Apple and its competitors will need to move beyond a pay-per-download business model," said Interpret CEO Michael Dowling. "Consumers are used to an ad-supported model for video, and are open to a wide range of advertising if companies like Apple can deliver on the user experience." Jonathan Webdale 17 Jul 2007 © C21 Media 2007 
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