Mobile entertainment to become a US$64bn business


24 Jan 2008

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Music, games and mobile TV will be the major contributors to the global mobile entertainment market, which will rise from just over $20bn in 2007 to more than $64bn by 2012, according to a new report by Juniper Research.

Other mobile entertainment sectors including user-generated content, gambling, adult and infotainment will form a part of this substantial market.

The report says mobile music will remain the largest single sector of the mobile entertainment industry over the next five years.

Revenues from music will rise from nearly US$9bn in 2007 to US$17.5bn in 2012, bolstered by the increasing availability of full-track download and streamed services, the former in both paid-for and rental formats.

Likewise, mobile games will retain second-ranking in terms of end-user generated revenues: boosted by rapid growth in mass market ‘casual’ gaming, revenues are expected to rise from just under $5bn in 2007 to nearly $16bn in 2012.

Meanwhile, strong growth is also expected from mobile TV, with many developed (and some emerging) markets launching dedicated mobile broadcast networks within the forecast period.

This, plus increased adoption of streamed TV bouquets, should see the market rise from $1.4bn in 2007 to $11.9bn in 2012.

“With revenues from voice services declining and messaging revenues flatlining, last year finally saw a number of more sophisticated entertainment services begin to fulfil their potential and redress the balance,” report author Dr Windsor Holden explained.

“With more widespread penetration of 3G handsets, or entertainment-focused 2.5G handsets like the iPhone, there is likely to be a much greater surge in both the adoption and overall usage of rich media services.”

Dr Holden said regulations and prohibitions will limit opportunities in the adult and gambling sectors, although Juniper Research predicts that restrictions on gambling services in the key US market will ease in the medium term.

It is envisaged that China and the Far East will remain the largest regional market for mobile entertainment, with revenues rising from $8.5bn in 2007 to nearly $21.3bn by 2012.

By John Kennedy

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