Increased demand for paid content to drive recovery and growth in mobile entertainment

The latest version of the Mobile Entertainment Foundation (MEF) Business Confidence Index (BCI), compiled by KPMG, has shown signs of recovery and a clear trajectory of revenue growth.

The fourth MEF BCI 4th Survey, said to be representative of the whole mobile media entertainment value chain, suggests that mobile applications will drive substantial new revenue streams and projects growth in the region of 25-35% for the next 12 months. KPMG found that even though the mobile entertainment industry had undoubtedly suffered, over the last twelve months, headcount growth in the sector had actually exceeded the projections made in the previous quarter.

Very encouragingly, the survey also found growing demand for paid-for mobile content. Over three-fifths (61%) of revenues for the next quarter are projected to come from subscription and one off purchases. It added that mobile entertainment applications had developed considerably as a driver of growth over the past 6 months, illustrating what KPMG described as the dynamism of the new business model for monetising mobile content. The survey showed that half of the revenue projected to come from applications in the next quarter will be from paid for apps.

Commented Andrew Bud, the Global Chair of MEF, "Our industry has faced a difficult period, but these latest findings clearly show that confidence in the growth of our industry has not diminished in the last year. 81% of respondents report that their actual performance for the last quarter was either better than or in line with budget, and viewed alongside the consistent and significant market growth predictions being made by our industry is very positive news as we move into a new year."

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