Mobile entertainment revenue expected to reach $62B in 2010
December 12, 2007
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The global market for mobile entertainment should generate approximately $62 billion in annual revenue by 2010 despite many high-profile failures such as Disney Mobile, ESPN Mobile and Amp’d, according to a new report from Research and Markets.
Mobile social networks have a growing role in the mobile space and are expected to contribute to mobile entertainment revenue by 2010, the Dublin, Ireland-based market researcher said.
“The report demonstrates how mobile carriers and content providers see strategic opportunities in leveraging social networking to drive awareness and demand for mobile content, and how the likes of YouTube, Facebook, and MySpace show real promise as they leverage the inherent drive in people to share content within their social circles,” a statement on the study said.
Communities are a great tool for diversifying mobile content. In addition, their ability to contribute positively to the end-user experience in content discovery adds value to an increasing demand for content, especially in the youth market, the study pointed out.
Although it is estimated that the global market for mobile entertainment will generate considerable revenue in two years, there is consensus that growth rates for mobile content have flattened over the past years.
“Consolidations in the industry and many high-profile failures in recent months like ESPN Mobile, Disney Mobile and Amp’d have put pressure on both content providers and carriers to look at new ways to grow revenues,” Research and Markets said in the report.
Viral spiral
However, increases in mobile bandwidth and the relative successes of video and mobile music provide opportunities that have yet to be fully monetized.
Carriers and content providers both see opportunities in leveraging social networking to drive awareness and demand for mobile content.
“Internet video successes like YouTube and social networking sites like Facebook and MySpace show real promise as they leverage the inherent drive for people to share content within their circle of friends,” the report said.
“Much more than simply viral distribution, adding a community aspect to mobile content improves the experience of content discovery and also adds value and demand to the content, especially for the youth market,” per the report.
Within communities are users who create, use and promote the content within their community.
“Marketers have begun to utilize social networking to capture eyeballs and to increase the credibility for their messages by encouraging the input of their fans,” the report stated.
“The models and techniques continue to evolve as agencies and their clients try to [find] the best ways to use these channels effectively to extend their traditional marketing and promotional activities and also to launch campaigns that would be considered risky in traditional media.”