Entertainment will form 23pc of mobile revenue by 2011

5 Mar 2008

Mobile entertainment will account for nearly a quarter (23pc) of mobile data revenue by 2011, IDC has predicted.

The analyst firm has forecast the number of wireless broadband subscribers worldwide to grow by a little more than a billion over the next four years, generating US$800bn in revenue. Mobile entertainment will account for 5.1pc of this total, it said, with the vast majority of mobile entertainment revenue derived from ringtones, ringback tones and mobile television and video services.

According to IDC, ringback tones will overtake ringtones in 2010 and become the single largest revenue source for mobile entertainment due to a variety of inherent advantages.

“The fact that the ringback tones sector is expected to actually increase its share several percentage points through the forecast period is a testament to the inherent strengths of the service,” said Lewis Ward, research manager of IDC’s Wireless Communications Research.

“One could argue that because the ringback tones sector is the most closely tied into the network and as cannibalisation from third parties is virtually impossible, it has some additional advantages over other mobile entertainment services and content types for mobile network operators.”

Worldwide wireless revenue is poised to increase at least 25pc annually between 2006 and 2011, IDC stated.

By Niall Byrne