Global Portable Audio And Video Player Sales To Hit $6.8 Billion In 2005

Informa claims, however, that lack of content and high retail prices will limit consumer uptake of video-enabled portable devices during the next five years.

The report predicts the number of mobile phones offering MP3-playback to rise sharply over the years to 2010, with music-enabled handsets estimated to increase to 478 million in 2010, up from 76 million in 2005.

Mobile phones that include MP3-playback are forecast by Informa to begin to impact on the sales of flash memory devices towards the end of the next five years.

Simon Dyson, author of the report explained: “If a mobile handset can offer the same music playback functions as a smaller memory flash player then some consumers will simply choose to use their phone as a portable player. It’s unlikely that higher capacity players will be affected.”

Informa’s predictions confirm those made in its Mobile Entertainment report, showing that consumers are increasingly using their mobile phones to play music and games, opening up lucrative new revenue streams for mobile and content industries and resulting in a global mobile entertainment market predicted to be worth $42.8 billion by 2010 (see Global Entertainment Market To Reach $42.8 Billion By 2010).

The report claims that emerging new markets, such as mobile TV, user generated services and personalisation, graphics and visual themes, are forecast to contribute a further $11 billion in revenues by 2010 as the market expands.