Mobile entertainment services will generate over $27 billion by 2008 and will have over 2.5 billion users, according to new research from mobile industry analysts, ARC Group.
In the early stages of development, mobile music will be the main market driver, with further impetus from mobile gaming and applications.
“Musical content adds to the attractiveness of the mobile device as an entertainment portal enhanced by developments including polyphonic ringtones and music download and streaming technologies,” said Paul Merry, research analyst at ARC.
He said that mobile video will further enhance user experience but added that compelling video content that relies on next generation networks is unlikely to be prevalent until 2008.
ARC believes that operators will have to re-educate users from voice models of use to data models of use. At present, gaming makes the best use of the potential of data services and educates the end user into the bargain.
Key concerns going forward are issues of pricing for premium content, billing, revenue share and the management of complex relationships that will develop between existing and new players in the value chain.
