British mobile operator O2 and Hollywood-based producer of mobile multimedia CinemaElectric have signed an agreement to distribute CinemaElectric's PocketCinema multimedia content to O2 mobile subscribers via the O2 Active service in the UK and Ireland. The content will include video, multimedia message service (MMS) content, applications and graphics customized for Nokia, Sony Ericsson, Samsung, Seimens, Motorola and Panasonic mobile phones, as well as the O2 X1.

Based on WAP page impressions, O2 records the highest usage of any UK operator.

CinemaElectric also has content created to fit small screen of handheld devices and personal computer, with distribution of content in Apple Quicktime and Windows Media formats. Content in the Windows Media format is compatible with the latest Windows Media player available in Windows Mobile Pocket PC devices.

According to EMC, 100 million, or 7.7% of all global mobile subscribers can currently access multimedia services and applications. This represents growth of 14% since June 2003 and has been made possible by the robust sales of color mobile phones and new wireless networks. Mobile entertainment products have already proven to be hugely profitable. Tens of millions of mobile users regularly download ringtones and graphics to their mobile phones globally, at prices ranging from $0.30 to $5.00 per download. Reuters estimates global ringtone royalties between $750 million and $1 billion in 2002, from total revenues of $4 billion. Multimedia (graphics & video) revenues are expected to pass ringtone revenues by 2007.