The iPhone may drive a new wave of growth growth in mobile video usage, according to research conducted by new media research firm Interpret.

Research Highlights:

• Despite owning their new iPhones for a short period of time, 63% of iPhone owners have already used the widescreen-enabled device to watch video (compared to only 28% of regular cell phone owners).
• Half of iPhone owners (51%) have watched a YouTube video on their phone.
• 46% have watched a music video.
• 34% have watched the news.
• 32% have watched a movie trailer.

The study suggests that it’s not the consumers who are different, it’s the iPhone. Prior to buying the iPhone, few owners had watched video on their cell phone (only 17% had seen YouTube clips, 21% had watched a music video, 16% had seen the news, and only 15% had watched a movie trailer on a phone).

“Apple has already made a name for itself as a top destination for music and video on-the-go, and consumers expect the iPhone to deliver on that reputation,” said Jason Kramer, Chief Strategy Officer, Interpret. “Consumers want to watch video on their cell phones, but they have high expectations for the experience. The iPhone shows consumers that the potential is there to meet or exceed their expectations for mobile video.”

iPhone Could Have Halo Effect For Mobile Video

The study also suggests that the iPhone could have a “halo effect” for mobile video, even among non-owners. Only 28% of non-iPhone owners have ever watched video on their cell phone, and interest in watching video on their current phone is not strong. One-quarter or fewer are interested in watching music videos (25%), TV shows (25%), movies (24%) or video clips like on YouTube (24%).

However, after seeing a 2-minute video about watching video on the iPhone, nearly three-quarters (73%) of non-owners say they are interested in watching video on an iPhone, and 42% say they are “extremely” or “very” interested. Further, widescreen video is a compelling selling point for the iPhone – half (50%) of non-owners who are open to buying the device say that seeing the iPhone’s video capabilities makes them more interested in buying one.

“What’s surprising is how wide open the market for mobile video is right now,” added Kramer. “The iPhone is definitely raising consumer awareness, but there are other players to watch, like Verizon and LG’s VX9400 Mobile TV phone. Consumers are remarkably open to who delivers mobile content to them.”

A majority of both iPhone owners and non-owners consider carriers, broadcast and cable networks, movie studios, and Internet portals appropriate sources for mobile video. iPhone owners and non-owners have some different expectations as to who will provide their mobile entertainment – 73% of iPhone users expect to get it from iTunes (compared to 43% of non-owners), and 46% of non-owners expect to get it from their cable or satellite company (compared to 37% of iPhone owners).

According to the survey, 66% of iPhone owners and 73% of non-owners said they prefer to watch content for free, with ads. One-third of iPhone owners (34%) would consider a monthly subscription model (compared to only 21% of non-owners) and 28% would consider pay-per-download (compared to only 20% of non-owners).

“In order to fully capitalize on the opportunity for mobile video, Apple and its competitors will need to move beyond a pay-per-download business model,” said Michael Dowling, Interpret’s CEO. “Consumers are used to an ad-supported model for video, and are open to a wide range of advertising if companies like Apple can deliver on the user experience.”

Source: Interpret