A new report from Screen Digest predicts that by 2011 mobile TV revenue will reach €4.7 billion from 140 million subscribers.
The new broadcast services, says Screen Digest, which launched in only a handful of markets, are growing rapidly. For instance, Unicast services, delivered over existing 3G networks, have begun to generate real revenues in Europe.
Just under 6 million people watch broadcast mobile TV in Japan and South Korea and the new broadcast networks in Italy have already attracted just under half a million subscribers only a few months after launch.
Mobile TV’s revenue potential is greater than that of games or even music due to the mass market nature of the product. Screen Digest mobile TV specialist Ronan de Renesse believes customers will subscribe to ‘simulcast’ channels – that is, simultaneous broadcasts of conventional TV programming.
David MacQueen says “Regulatory and competitive pressures have pushed down the average consumer spend on voice and messaging. Mobile operators must now look to new content offerings to deliver the business growth they’ve enjoyed over the past decade. Screen Digest believes that the revenue is out there – and operators should be looking to TV, music and games to deliver it.”
The mobile game market is currently worth €1.6 billion says Screen Digest with 50% of that revenue based in South Korea and Japan, but market growth is slowing.
By 2011 it will be worth €2 billion – increasing only incrementally in the next five years. Screen Digest mobile analyst MacQueen believes that as operators shift focus onto music and TV services, the mobile games market will stall unless current business models change.
Screen Digest also forecasts that the global over-the-air full track music download market will grow explosively over the next five years, reaching €1.47 billion by 2011 – an eight fold increase from 2006.
One of the major contributing factors to this growth is going to be the availability of subscription services which offer more than just audio tracks. However, the majority of music on mobile phones will still be ‘side loaded’ from the PC.
Recent research from comScore said that nearly two out of three US mobile TV subscribers are male, and nearly half are below the age of 35 (see US Mobile TV Popular Among Males and Younger People).
Meanwhile, In-Stat revealed that the number of commercially launched mobile TV broadcast networks will grow from 9 in 2006 to 13 in 2007 (see Mobile TV Broadcast Market Expands).
Related Links
