Downloadable games will replace ringtones as the most profitable mobile content and entertainment service in Western Europe, according to Analysys.
In a new report, the telecoms consultancy suggests that mobile games have the best short term growth prospects with revenues expected to surge from E255 million in 2002 to more than E3 billion in 2005.
“Ringtones, logos and other personalisation services have formed the backbone of mobile content and entertainment services to date, with an estimated market value of E1.2 billion across Western Europe in 2002,” said principal analyst Katrina Bond, author of the report. “But growth in the personalisation market is slowing rapidly, while downloadable games, a logical extension of personalisation services, are just taking off.”
Prospects for the whole entertainment sector are less promising, particularly while interoperability and digital rights managment issues remain unresolved. MMS picture messaging has been available across Western Europe for the last six months, but there is no guarantee that customers will be able to send messages to people on other networks.
Nonetheless, Analysys predicts that total revenues from mobile content and entertainment services are set to rise from E2 billion this year to E11 billion by 2005.
