Mobile Entertainment Service Revenues to Reach $54 billion by 2015

By John Levett

Juniper’s latest Mobile Entertainment report observed that the combination of app stores and smartphones had created an unprecendented level of awareness and usage of services such as social media, games, video and streamed music. At the same time, the transition from the “walled garden” business model to an open mobile Internet had created greater opportunities for D2C players in niche areas such as gambling and adult services.

In addition, the report noted that the rise in consumer adoption of rich media content had prompted unprecedented interest in mobile channels from major brands, which are allocating increasing proportions of digital budget to mobile. As a result, content providers in particular are benefitting from the additional revenue stream created through in-app advertising.

New business models create new challenges

According to report author Dr Windsor Holden, “We’ve witnessed a quite dramatic evolution of the mobile entertainment market over the past few years, in terms of type of content, scale of content and how that content is monetised. The challenge for the players across the redefined mobile ecosystem is to recognise how best to leverage their strengths to ensure that their respective revenue streams are optimised.”

Other key findings from the report include:

• Despite the erosion of the ringtone market, mobile music will remain the largest single contributor to mobile entertainment content revenues over the next five years.

• The fastest growing product sector will be mobile gambling, followed by social media.

• On a regional basis, Far East & China will continue to account for the largest share of revenues, followed by Western Europe.

The Mobile Entertainment white paper is available to download from the Juniper website together with further details of the study ‘Mobile Entertainment Strategies: Markets, Opportunities & Forecasts 2011-2015’.

About the author Jonh Levett is PR for Juniper Research, a company which provides research and analytical services to the global hi-tech communications sector, in addition to consultancy, analyst reports and industry commentary.

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