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Report: Mobile Media and Entertainment to Soar After 2010

22 Apr, 2008 By: Erik Gruenwedel

Ongoing improvements in Web browsing, content availability and the user experience should help mobile media and entertainment revenue in the United States reach $6.6 billion by 2012, according to a new report.

The study by Analysys, a Washington, D.C.-based research firm, said mobile media and entertainment revenue in the United States topped $3.1 billion in 2007 and isn't expected to explode until 2010, when technology and market conditions improve.

Analysts project that such services will comprise about 12.3% of non-voice service revenue during the next five years. Mobile TV and video-on-demand will spearhead the greatest percentage growth at 27%.

By contrast, the report said revenue from personalization services such as navigation, content filtering and tailoring the Web and multimedia resources to user needs would decline from 47% of mobile media and entertainment revenue in 2007 to 17% in 2012.

Alexandra Rehak, co-author of the report, said it remained critical that the user experience of such services be complementary to similar entertainment opportunities currently available across other media.

“Operators, content providers and device manufacturers will have to work together to increase subscriber awareness of [mobile media and entertainment] offerings and to ensure straightforward pricing, and simpler purchase and delivery processes,” Rehak said.

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