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Report: Mobile Entertainment Revenue Growth to Surpass Online

31 Jan, 2011 By: Erik Gruenwedel

Burgeoning growth in sales of so-called “smart phones” is projected to drive worldwide mobile entertainment revenue growth 24% through 2014, compared to 16% growth for online media, according to a new report.

London-based Futuresource Consulting said smart phone sales increased 56% in 2010, generating unit sales of 280 million and underscoring an install base of nearly 580 million phones. Key drivers for mobile phones include multimedia use, particularly for viewing video, using apps and browsing the Internet.

More than 10 billion apps were downloaded in 2010, and more than 50% of those were via the Apple Apps store — with a total retail value of more than $4 billion, even though 85% of downloaded apps are free. Moving forward to 2014, nearly 35 billion apps are projected to be downloaded by consumers, worth $17 billion.

Streaming media, made popular by Netflix in North America, has risen significantly in recent months, with consumers more likely to stream content than download it. YouTube, repurposed TV online and embedded flash/HTML video have been central to driving streaming activity and traffic.

Improvements in broadband performance, advancements in video compression technology and, more importantly, the availability of compelling services have led to a significant continued rise in streaming media activity, according to the report.


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