Revenue from mobile media and entertainment (MME) services in the US
will more than double during the next five years, according to the
latest research from Analysys, the global advisers on telecoms, IT and
digital media (www.analysys.com).
US MME services (excluding messaging, and mobile browsing and data
charges) generated US $3.1 billion in revenue in 2007, and Analysys
Research forecasts that revenue will grow to $6.6 billion in 2012, at a
compound annual growth rate of 16.3%. The strongest growth will not
occur until after 2010, as the technical and market environment for MME
services improves, according to the latest Analysys report, Mobile
Media and Entertainment in the US: forecasts 2007-2012.
- Key trends that are driving market growth include:
- Improvements to service accessibility: mobile Web browsing
platforms will improve and facilitate access to off-deck content, and
presentation of off-deck content will become more streamlined and user
friendly. - Wider availability of content, driven in part by
higher-generation network and device penetration: “As 3G, 3.5G and
Qualcomm’s MediaFLO network coverage increases, a greater range of
services will become available to a wider audience, and off-deck
content markets (both operator-billed and non-operator-billed) will
develop,” said Katrina Bond, co-author of the report.
“Non-operator-billed revenue from MME content and services will
increase significantly during 2007-2012, and will account for $1.3
billion, or nearly 20%, of MME revenue by 2012.” - Improvements to service usability: providers have not focused
enough on the end-user experience for MME services, and users’
frustration when the experience does not meet their expectations has
inhibited the growth of some services. - Simplified and more attractive pricing of MME content and
applications, as well as mobile data access: complex pricing, high data
charges, and unfavorable revenue sharing arrangements for content
providers have inhibited growth in the MME market.
Analysys Research forecasts that MME services will account for 12.3%
of nonvoice service revenue in the US by 2012. Mobile TV and VoD
services will experience the highest growth rate of any MME service
during the next five years. When combined, broadcast and unicast TV and
video services will account for 36% of MME revenue by 2012. By
contrast, revenue from personalization services will decline from 47%
of total MME revenue in 2007 to 17% in 2012.
“Operators, content providers and device manufacturers will have to
work together to increase subscriber awareness of MME offerings and to
ensure straightforward pricing, and simpler purchase and delivery
processes,” said Alexandra Rehak, co-author of the report. “It is also
critical that the user experience of MME services be compelling and
complementary to the subscriber’s experience of entertainment across
other media.”
Mobile Media and Entertainment in the US: forecasts 2007-2012
provides forecasts for subscriber numbers, adoption rates, ARPU
(Average Revenue Per User) and revenue for mobile MME services. The
forecasts are broken down by prepaid and contract segments, as well as
by technology generation. Market drivers and barriers to growth are
analysed for the overall MME market and for individual mobile service
types. The specific mobile services discussed include music, TV and
video on demand, games, social networking and user-generated content,
browsing and information services (including location-based services),
adult content and mobile advertising. The report examines the drivers
and barriers that will shape the US MME market, identifies key market
participants and evaluates market growth opportunities.
The report is available to purchase online at ,http://research.analysys.com/store priced at $3000 (or GBP1500 plus VAT).