Mobile Media Startups Struggling

WSJ writes that media services have failed to catch up in the US market:

While the number of U.S. cellphone users has doubled over the past six years to 215 million, only around 1% of them regularly use cellphones to watch videos, for example. Cellphones also are facing competition from iPods, Blackberries and other multimedia devices.

Even if the wireless start-ups succeed in persuading consumers to pay a premium for their entertainment services, the larger carriers are likely to respond by bringing similar services to market, says John Simon, managing director of General Catalyst Partners, a venture-capital firm that has invested in wireless companies. “The challenge is that they can be imitated by the major carriers,” he notes.

The start-ups say they expect to gain more traction with consumers within a year or so as their aggressive advertising produces results.

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