Mobile Video Sales Hit 1.4M Units: TRG

MINNETONKA, MINN. — According to research group TRG, growth in mobile video will be moderate in the OEM sector but slim in the aftermarket during the next five years.

OEM sales of mobile video will grow to 2.6 million units in 2012, up from 1 million units in 2005. Mobile video aftermarket sales will grow to 1.5 million units in 2012, up from 1.15 million in 2005.

For 2007, mobile video OEM sales will reach 1.39 million units, which is almost even with expected aftermarket sales to consumers at 1.4 million units.

"The point is that the aftermarket for rear seat entertainment is moderate to flat. The OEMs all have solutions as they realize that not offering rear-seat entertainment is like leaving money on the table," said TRG president/principal analyst Phil Magney.

TRG expects that eventually mobile video will follow in audio's footsteps in that consumers will use portable media players (PMPs) as a chief means of transporting video to the car. This may be played back on a car video screen using wireless USB or other technologies.

In addition, long-term demand for car video may get stronger, as mobile video services such as Modeo, MediaFlo and VCast become more prevalent.

Finally, TRG expects that eventually mobile video will migrate to the front seat of the car.

In Asia and in Europe front-seat video is legal up to speeds of 3 or 4 miles per hour so drivers can watch TV in slow traffic. In the United States, front seat video is permissible only when the car is stopped and the parking brake is engaged.

There are new technologies, however, such as dual-screen imaging that will send one image to the front-seat passenger and another to the driver, simultaneously on the same screen, which could eventually lead to the use of front seat video in the United States by the year 2012, TRG said.