JupiterResearch reports that 41 percent of mobile phone users are interested in some form of video service on their phone. According to Jupiter's "U.S. Wireless Forecast, 2005 to 2010" report, the growing demand for video will generate $501 million in revenue by 2010, up from $62 million in 2005. Adoption of mobile video on phones has been slow, with only 2 percent of users claiming a subscription. Among subscribers, however, 17 said they were interested in watching "live" TV on their cell phones, and 11 said they were interested in short video clips.

"This consumer interest bodes well for the mobile industry as vendors use different business models to try and tap into this consumer demand," said Julie Ask, Research Director at JupiterResearch. "The challenge is not interest but rather finding the correct mix of premium content and price points that is lacking in today's offerings."

"Longer-term adoption will depend more on business models and content offerings than on the technology or devices," said David Schatsky, SVP of Research; consumers are interested, but they're "not interested in paying large fees for mediocre content," he said.