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KIT digital Poll Finds 80+ Percent of Corporations Yet to Realize the Opportunity of Mobile VideoU.S. Companies Significantly Behind Global Competitors in the Use of Mobile Video for Marketing, Corporate Communications, and Operational Efficiency (December 02, 2009)
NEW YORK, NY -- (Marketwire) -- 12/02/09 -- According to a new survey of top-tier U.S. marketing and advertising executives, American companies are trailing their international competitors in the use of mobile video as a tool to grow their business. The KIT digital (NASDAQ: KITD) sponsored survey of more than 125 executives found that while nearly 60 percent of respondents believe that video content distribution is "important" or "very important" to their businesses, only 16 percent of the same executives make use of mobile video capabilities. The survey was conducted during a KIT digital-sponsored webinar called Emergence of the 3rd Screen: Trends in Mobile Internet and Video, in which more than 500 senior marketing executives from major multinational corporations and leading marketing / advertising firms participated.
"A variety of corporate verticals throughout Europe and Asia are taking advantage of mobile video solutions," says Barak Bar-Cohen, global head of business development of KIT digital. "We're working with clients all over the world who are starting to use mobile video to market products and brands to end-customers, communicate internally to employees and externally to investors and the media, and even enhance store monitoring and security/surveillance capabilities."
A recent study conducted by The Nielsen Company showed the total number of Smartphone subscribers in the U.S. has increased 72 percent from Q2 in 2008 to Q2 in 2009, with approximately 26.1 million people currently owning Smartphones. Over half of recently purchased phones in the U.S. are "media phones" -- both "smart" and "fast" -- and over 50 percent have 3G capabilities. While this technology is widely disseminated, there are a great of deal of capabilities that are not being used.
"Video content is rapidly becoming the bulk of new content produced for web-based consumption, and while many U.S.-based companies are developing some form of an online video or even IPTV offering, they are behind their global competitors in developing a mobile video strategy," said Arnd Fröhlich, global head of mobile services and innovation, KIT digital. "Internationally we have seen tremendous demand for our end-to-end solution to manage and distribute video assets on mobile platforms; and we anticipate our U.S. client base to grow ten-fold over the next several years as 3G and 4G networks in North America become prevalent, and we see a rapid catch-up period vis-à-vis European and Asian markets."
Survey participants were also asked about how they intend to integrate mobile Internet -- the 'third' screen -- into their corporate video content distribution. Over 1/3 have concrete plans to make use of a mobile distribution platform for their video assets. 38 percent of this group plans to make use of mobile distribution platforms within the next 12 or so months while 11 percent, "know they need to add mobile distribution but don't know when they will do so."
The amount of money currently being invested by the respondent group in the development of a mobile distribution solution does not reflect the group's aspirations -- leading to a classic "outsourcing" and external vendor selection dynamic. Less than 2 percent of respondents are currently investing over $500,000 per year internally in this solution, and over 44 percent of people polled are spending less than $250,000 per year internally on mobile video platforms today.
"The U.S. is still around 12 months behind the rest of the developed world -- and even some of the emerging markets -- in its adoption of mobile video technology," continued Fröhlich. "But that is changing fast as mobile network operators catch up and the iPhone application really becomes a key part of the way video is delivered to those handsets."
KIT digital works with a number of leading corporations, such as Vodafone, Citadel Broadcasting and the Associated Press, helping them to take advantage of the rapidly growing consumer appetite for mobile video. The KIT digital VX platform allows customers to ingest video and deliver it to a computer screen, IP-enabled TV or a mobile phone anywhere in the world. Mobile network operators and global brands use the VX platform to provide end-users with a fully converged VOD and live streaming-capable mobile video solution.
In addition to Arnd Fröhlich of KIT digital, Chris Quick, manager of client services - mobile media, The Nielsen Company presented during the webinar.
About KIT digital, Inc.
KIT digital (NASDAQ: KITD) is a leading, global provider of on-demand, Internet Protocol (IP)-based video asset management solutions. KIT VX, the company's end-to-end software platform, enables enterprise clients to acquire, manage and distribute video assets across the three screens of today's world: the personal computer, mobile device, and IPTV-enabled television set. The application of VX ranges from commercial video distribution to internal corporate deployments, including corporate communications, human resources, training, security and surveillance. KIT digital's client base includes more than 600 enterprise customers across 30+ countries, including The Associated Press, Best Buy, Bristol-Myers Squibb, Disney-ABC, General Motors, Google, IMG Worldwide, Intel, McDonald's, News Corp, Telefónica, Vodafone, Verizon and the U.S. Department of Defense. KIT digital maintains principal offices in Prague, Cologne, Dubai, London, Melbourne (Australia), New York, Stockholm and Toronto. For additional information, please visit www.kitd.com
KIT digital Forward-Looking Statement
This press release contains certain "forward-looking statements" related to the businesses of KIT digital, Inc. which can be identified by the use of forward-looking terminology such as "anticipates," "believes," "estimates," "expects" or similar expressions. Such forward-looking statements involve known and unknown risks and uncertainties, including uncertainties relating to product development and commercialization, the ability to obtain or maintain patent and other proprietary intellectual property protection, market acceptance, future capital requirements, regulatory actions or delays, competition in general and other factors that may cause actual results to be materially different from those described herein as anticipated, believed, estimated or expected. Certain of these risks and uncertainties are or will be described in greater detail in our public filings with the U.S. Securities and Exchange Commission. KIT digital is not under any obligation to (and expressly disclaims any such obligation to) update or alter its forward-looking statements whether as a result of new information, future events or otherwise.
KIT digital Contact:
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