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Mobile Entertainment Is Moving On Up
added: 2008-01-28

Mobile entertainment revenues will reach $64 billion worldwide by 2012, from just over $20 billion in 2007, according to Juniper Research's "Mobile Entertainment Markets: Opportunities & Forecasts 2007-2012" report.

"With more widespread penetration of 3G handsets – or entertainment-focused 2.5G handsets like the iPhone – there is likely to be a much greater surge in both the adoption and overall usage in rich media services," said Windsor Holden, author of the report.



Juniper said that mobile music revenue would account for $17.5 billion of the mobile 2012 entertainment market, up from nearly $9 billion in 2007.

The company projected that mobile gaming revenues would hit $16 billion in 2012, from just under $5 billion in 2007. Mobile TV was pegged to grow to $11.9 billion in 2012, up from $1.4 billion in 2007.

Juniper's numbers are generally in line with projections made by Informa Telecoms and Media one year ago for 2011.

Informa predicted that mobile music revenues would pass $13 billion for that year. Considering that iPhone owners and many other mobile subscribers can now download music directly to their phones without using PCs, such growth seems plausible.



John du Pre Gauntt, senior analyst at eMarketer, said that retail revenues associated with mobile music should interest advertisers and marketers.

"Retail revenue is the money that consumers pay for their music downloads or, potentially, the money an advertiser or sponsor would pay to make the music available free to end users," Mr. Gauntt said. "For the next two years at least, it is highly probable that the mobile carriers and music labels will attempt to sell full-track downloads and mastertones at full retail price, without seeking significant participation by brand advertisers.

"This creates an opportunity for brands to take an increasing role in subsidizing ringtones, wallpapers, screensavers and a host of other digital content connected with a given song title or artist," he concluded.


Source: eMarketer

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