Low Tariffs, Combined With Wider Handset Vendor & Carrier Support Required
Boston, MA - January 31, 2008 - AT&T Video Share, a service that simultaneously combines voice and video communication by supporting a one-way video stream initiated during a standard call in real-time, will struggle to gain traction unless usability, pricing and interoperability barriers are lowered, according to the new Strategy Analytics report, "AT&T Video Share: Three Screen Access Not Sufficient to Drive Success."
Launched in July 2007, AT&T Video Share is the first real-time video based mobile communication service offered in the US. However, Nitesh Patel, Senior Analyst, Global Wireless Practice, notes, "The disappointing adoption levels of two-way mobile video telephony services in Europe highlights low latent consumer demand for video based communication services, despite their wide availability in the region. Furthermore, with service usage limited to only AT&T subscribers, the network effects required to drive adoption and usage are absent, despite the carrier's plans to introduce interoperability with PCs and TVs as part of its three screen strategy. Consequently, the Strategy Analytics short-to-medium term outlook for AT&T's Video Share is bleak." This report identifies a number of areas that AT&T can address in order to enhance prospects for Video Share.
David Kerr, Vice President of the Global Wireless Practice, proposes, "Experimentation, adoption and usage of AT&T Video Share can be improved if the current high tariffs for service use are lowered from the current 36 cents per minute pay-as-you-use level. Furthermore, to take the total addressable market beyond its current 1% penetration level, handsets from vendors other than LG and Samsung need to support this service."