Mobile TV and VOD to drive US mobile media and entertainment market
24 April, 2008 - 20:55Despite the current economic downturn, revenues from mobile media and entertainment (MME) services in the US will more than double during the next five years, according to the latest research from Analysys.
According to the research firm's report, ‘Mobile Media and Entertainment in the US: forecasts 2007-2012', US MME services (excluding messaging, and mobile browsing and data charges) generated US$3.1 billion in revenue in 2007.
Analysys forecasts that revenue will grow to $6.6 billion in 2012 and that that the strongest growth will not occur until after 2010, as the technical and market environment for MME services improves.
The firm also predicts that MME services will account for 12.3% of non¬-voice service revenue in the US by 2012. Mobile TV and VoD services will experience the highest growth rate of any MME service during the next five years.
When combined, broadcast and unicast TV and video services will account for 36% of MME revenue by 2012. By contrast, Analysys expects revenue from personalisation services to decline from 47% of total MME revenue in 2007 to 17% in 2012.
Among the other key drivers for the market growth will be improvements to service accessibility. That is to say, mobile Web browsing platforms will improve and facilitate access to off-deck content, and presentation of off-deck content will become more streamlined and user friendly.
Analysis also predicts wider availability of content, driven in part by higher-generation network and device penetration.
"As 3G, 3.5G and Qualcomm's MediaFLO network coverage increases, a greater range of services will become available to a wider audience, and off-deck content markets (both operator-billed and non-operator-billed) will develop," commented Katrina Bond, co-author of the report.
"Non-operator-billed revenue from MME content and services will increase significantly during 2007-2012, and will account for $1.3 billion, or nearly 20%, of MME revenue by 2012."
On a note of caution, however, Analysys warns that improvements to service usability are needed as it believes providers have not focused enough on the end¬-user experience for MME services, and users' frustration when the experience does not meet their expectations has inhibited the growth of some services.
Furthermore it calls for simplified and more attractive pricing of MME content and applications, as well as mobile data access. The researcher argues that complex pricing, high data charges, and unfavourable revenue¬ sharing arrangements for content providers have inhibited growth in the MME market.
"Operators, content providers and device manufacturers will have to work together to increase subscriber awareness of MME offerings and to ensure straightforward pricing, and simpler purchase and delivery processes," added Alexandra Rehak, the other co-author of the report. "It is also critical that the user experience of MME services be compelling and complementary to the subscriber's experience of entertainment across other media."
