Mobile entertainment to surge in next five years
By Erina Lin, Monday 28 January 2008 at 21:38 :: World Digital Media Trends :: #1160 :: rss
Global mobile entertainment revenues will exceed US$64 billion by 2012, from merely US$20.7 billion in 2007, according to the latest report from Jupiter Research. "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 in rich media services," stated Windsor Holden, author of the report, "Mobile Entertainment Markets: Opportunities & Forecasts 2007-2012."
Mobile music revenue would account for $17.5 billion in 2012, up from nearly $9 billion in 2007. Mobile gaming revenues would reach $16 billion in 2012, from merely less than $5 billion in 2007 and mobile TV was pegged to grow to $11.9 billion, up from $1.4 billion in 2007, the report predicts.
Another research firm Informa Telecom and Media predicted that mobile music revenues would pass $13 billion by 2011. It is plausible, considering iPhone owners and many other mobile subscribers can now download music directly to their phones without first having to download it to a computer.
Senior analyst at eMarketer John du Pre Gauntt pointed out that retail revenues associated with mobile music should interest advertisers and marketers.
"Retail revenue is the money that consumers pay for their music downloads or, potentially, the money an advertiser or sponsor would pay to make the music available free to end users. For the next two years at least, it is highly possible that the mobile carriers and music labels will attempt to sell full-track downloads and mastertones at full retail price, without seeking significant participation by brand advertisers,” du Pre Gauntt said, in an eMarketer report.
This will create opportunities for brands to increasingly subsidize ringtones, wallpapers, screensavers and a host of other digital content connected with a given song title or artist, according to eMarketer.







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