Mobile video is struggling because the economics don't work yet, so says Mark Collins, vice president of consumer data services for AT&T. He said that every major U.S. carrier, including Verizon, Sprint and T-Mobile, is looking at video as a potential driver of data traffic and revenue. But so far, Collins says, no one has figured out how to deliver the video that consumers want at a price they're willing to pay – while still managing to compensate Hollywood studios and carriers for their part.

“Everything that we're doing on mobile is sort of the opposite of what customers are doing with their own consumption habits,” Collins says. “Bigger screens, higher resolution, on-demand, long-form content – I can't really do any of that right now.”

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