Mobile TV set to ring up profits in Germany

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MUNICH -- German broadcasters could be earning €655 million ($874 million) a year from mobile telephone video services by 2012, according to a study released Monday by Berlin-based media consulting firm Goldmedia.

The prognosis is based on current market and user research as well as experience with mobile phone TV services outside of Germany -- mostly in Korea and Japan, according to a Goldmedia spokesman.

Goldmedia believes that the leading commercial players will have debuted mobile TV services in Germany by this time next year. But the study warns that, should the process of distributing frequencies and capacity for mobile TV in Germany be delayed, the financial rewards will have to wait as well.

"Despite the fact that the German market is heavily influenced by free TV, Goldmedia sees real opportunities for mobile TV to establish a subscription-based business model," the study said. "In contrast to Internet or classical television users, mobile phone users are accustomed to paying for services."

The study indicates that German cell phone users will be willing to pay an average of €7.50 ($10) a month for mobile television.
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