The Mobile Entertainment Forum (MEF) has published a report
that takes an in-depth look into the impact of ad-funded mobile
entertainment (AFME) on the mobile entertainment market in the U.S. The
report forecasts that the U.S. AFME market will be worth a total of
US$336.35 million by 2013, expanding the already burgeoning mobile
entertainment market by 4.6%.
Brands subsidizing content will contribute the majority of the
revenue (US$262.7 million) as they look to capitalize on mobile's
captive audience, and the remainder will come from premium content
up-sells (US$73.7 million). Mobile video and TV will generate 41.4% of
ad-funded revenues by 2013, with music at 34.5% and games at 24.1%.
"AFME is just beginning in the U.S., and its promise is clear," said
Andrew Bud, Chairman, MEF Global. "Its contribution of US$336.35
million by 2013 to the mobile entertainment business shows that it will
have a real impact on the future of our industry."
"MEF is at the forefront of providing our members with market data
and information allowing them to make informed business decisions. In
the report, we have shown that being able to provide consumers with
content for free or at a subsidized rate can drive up mobile content
consumption by up to 4.6% in the U.S. alone," added Suhail Bhat, Policy
and Initiatives Director, MEF.
Since February 2008, MEF has provided the Industry with a roadmap of
AFME for the on-portal mobile entertainment market in the U.K. and
France. An AFME study on India will be released at CommunicAsia (June
17-20).
Since releasing the results of its industry survey on AFME in 2006,
MEF has worked to ensure that ad-funded mobile entertainment services
have the potential to redefine the way customers engage with and
consume mobile content. The unique strengths of mobile to deliver
targeted, location based and real time content have yet to be taken
advantage of by the mobile industry. MEF currently has two working
groups composed of industry leaders specifically examining the
potential for AFME and how this potential can be realized. The first
working group is looking at developing metrics and measurement, and the
second is looking at education -- MEF will produce a lexicon and
develop a guide setting out the different types of mobile content and
examine how best services can be ad-funded and what the business models
will look like.
The report is available to MEF members at www.m-e-f.org