Mobile based entertainment has greatly evolved over the last few years as a result of newer and better technologies that are available to most users at very low prices. Gaming produces the greatest part of the total revenue of this market, but mobile video is catching up really fast and it is scheduled to become the biggest source of profit in the following years.

The mobile video segment has now reached a turning point in its evolution. Because of the great number of users, networks have reached their maximum loading capabilities. From now on, service providers have two possibilities, both with advantages and disadvantages. They have the option of increasing the bandwidth in order to allow an additional number of users access to video services. Of course, this method can take a lot of time and will require massive investments in infrastructure and facilities. Pumping more money in to this service isn't a thing that operators desire because, by adding users to video networks, they look to obtain more profit and it would be something like "win some to lose some" to them. On the other hand, the providers can lower the quality of video content they share to the users so that more people can benefit from the same amount of traffic. This means cutting bitrates, resolutions and frame rates and it certainly won't please the vast majority of users. Most of them are used to high definition content from their home TV's so taking a serious step back would definitely make these people angry. Another argument against this method would be the fact that it can't seriously increase network broadcasting capabilities, despite being a very cheap solution.

Mobile video providers have to treat this situation very carefully and choose the best possible solutions for the future of this segment that has the biggest potential of all mobile entertainment.