Small Screens, Smaller Audiences
Burlingame, Calif. -
Tiny screens abound, but consumers aren’t watching--yet.
That’s the status of the mobile video industry, according to an October 2006 study from Nielsen Media Research, which found that only 2.2% of files stored by users on Apple Computer
's video iPods are actually videos.
Apple has been selling downloadable videos, as well as iPods with video capabilities, for more than a year. But it seems more focused on selling hardware than software. Chief Financial Officer Peter Oppenheimer
said during the company’s fourth-quarter earnings call Oct. 18 that “[Apple’s] philosophy is to run [the iTunes] store a little bit over break-even.” Sales from the store were down about 1% from the third quarter to the fourth, bringing in just $452 million.
At a September event, Chief Executive Steve Jobs
said 45 million videos had been purchased. The Walt Disney Co.
, which is the only Hollywood studio to sell full-length movies via iTunes, says it has distributed 500,000 films since September.