US mobile content revenues to double by 2014

8 Sep 2010

Revenues for mobile content – including video, games and music – will reach an estimated US$1.54bn this year, according to a new report from eMarketer.

“The continuing advance of smart devices — including tablet-style computers, led by Apple’s iPad — and the growing ubiquity of mobile broadband networks mean that consumers have to make fewer compromises when it comes to the consumption of games, music and video,” said Noah Elkin, eMarketer senior analyst and author of the new report, Mobile Content: Games, Music and Video Take to the Cloud.

According to eMarketer, estimates combined revenues from three main channels — subscriptions (streaming music and mobile TV services); direct and pay-per-view downloads (full music tracks, games and TV/movie/event programming); and advertising-supported (games, music services and video) — will more than double from 2010 to reach US$3.53bn in 2014.

Gaming is the out-and-out leader in terms of usage and revenues: the number of US mobile gamers is expected to reach 64 million in 2010, driving revenues of US$849m.

Meanwhile, the number of US consumers watching mobile video or television on their mobile devices is expected to reach 23 million this year and draw revenues of US$548.3m. By 2014, however, mobile video revenues are expected to reach $1.3bn.

According to eMarketer, the main factor driving revenues to game, video and music publishers is still paid or subscription-based content, though ad-supported revenues are expected to grow at more than double the rate of paid mobile content through 2014.

“The rules have not been written — yet,” said Elkin. “The ongoing digitalisation of media and the increased emphasis on monetisation spells opportunity for mobile game and music publishers as well as producers of video content.”

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