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US Mobile Media Revenues To Double During Next Five Years

US Mobile Media Revenues To Double During Next Five Years

Revenue 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 Mason.

US MME services (excluding messaging, and mobile browsing and data charges) generated US$3.1 billion in revenue in 2007, and Analysys Research forecasts that revenue will grow to $6.6 billion in 2012, at a compound annual growth rate of 16.3%.

The strongest growth will not occur until after 2010, as the technical and market environment for MME services improves, according to the latest Analysys report, Mobile Media and Entertainment in the US: forecasts 2007-2012.

Analysys Research forecasts that MME services will account for 12.3% of non­voice 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, revenue from personalization services will decline from 47% of total MME revenue in 2007 to 17% in 2012.

Alexandra Rehak, co-author of the report, said: “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.

“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.”

A recent forecast from Juniper Research said that the combination of greater 3G adoption and a marked increase in rich media, made-for-mobile content will drive mobile entertainment revenues to $47.5 billion by 2010 (see Mobile Entertainment Revenues To Reach $47.5bn By 2010).

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