Global Entertainment Market To Reach $42.8 Billion By 2010
Consumers are increasingly using their mobile phones to play music and games, and gamble, opening up lucrative new revenue streams for mobile and content industries, resulting in the global mobile entertainment market predicted to be worth $42.8 billion by 2010.
The report predicts the value of audio-based mobile music services to double during the five years to 2010, exceeding $11 billion.
According to Simon Dysob, co-author of the report: “the growth of mobile music has been astounding, from a cottage industry making basic monophonic ringtones in 1998 to a multi-billion dollar global business on which the music industry is staking much of its future.”
Total global revenues from mobile games are forecast to increase from $2.6 billion in 2005 to a massive $11.2 billion by 2010. Downloads are predicted to account for around two thirds of total global revenues through 2010, with online multiplayer traffic starting to generate significant income for mobile operators. Informa estimates that, by 2010, online multiplayer games will generate 20.5% of total global revenues.
Stuart Dregde, co-author of the report said: “The Asia-Pacific and Europe will continue to dominate the global gaming market in terms of revenues and users. However, the US is set to become the second largest individual market by revenues and users, behind Japan and China respectively, by 2010.”
However, the mobile games industry still has work to do to encourage mass-market adoption of mobile games, with just 6.7% of all mobile subscribers worldwide downloading and playing a mobile game, rising to 15.4% by 2010.
The market for mobile gambling is also expected to follow this trend, forecast to increase to annual revenues of $7.6 billion by 2010, up from $1.2 in 2005.
Europe is estimated to remain the largest market for the sector, generating $3.2 billion by 2010. It will be closely followed by the Asia-Pacific, forecast to reach $2.7 billion by 2010, with the US predicted to hit $979 million.
Dredge added: “Mobile gambling is already generating significant revenues, but there is room for sharp growth in the years ahead.”
“Operators recognise that there is a strong demand for mobile gaming services, and there is a strong demand for mobile gambling services, and there is no shortage of companies looking to provide them. However, the industry must keep in mind its responsibilities to tackle underage and problem gambling.”
Mobile phone companies are deepening the mobile content they offer to users, with operators and advertisers becoming aware of the different channels through which they can reach their audience.
Mobile television is one such medium being explored. Research experts and mobile service providers are predicting that the new technology will increase its penetration rate over the next few years.
A report in May, by research company Frost & Sullivan, forecast the mobile phone arena to receive substantial investment from service providers, predicting mobile service revenues to increase to over $1.5 billion by 2009, up from just $28.8 million in 2004 (see Mobile Service Providers To Deepen Mobile Content).
Research published last year by In-Stat estimated subscribers of worldwide mobile phones would hit 2.5 billion by 2009 (see Growth Returns To Mobile Phone Market).