Games and infotainment to drive mobile entertainment revenues to $65bn by 2016
A new report from Juniper Research has found that strong growth amongst games and infotainment applications, in part fostered by a burgeoning consumer tablet market, will push mobile entertainment revenues to more than $65bn annually by 2016, up from $36bn last year. By Windsor Holden.
By Windsor Holden
The report, ‘Mobile Entertainment Strategies: Business Models & Forecasts 2012-2016,’ noted that while the transition to an app-store centric ecosystem had dramatically increased consumer adoption of casual games, it had also resulted in the development of a far greater variety of content for mobile devices. Hence, revenues across a spectrum of infotainment services – most notably leisure and lifestyle applications – have already experienced dramatic growth.
However, the report observed that while overall entertainment revenues would continue to increase steadily, some sectors would fare less well. It highlighted the music sector as a case in point, where growth in streaming subscriptions and full-track downloads have been more than offset by the continuing decline in ringtones. Furthermore, with the global ringtone tone market expected to peak this year, by 2016 the music sector as a whole is expected to be worth just 80% of its peak 2008 dollar value.
Tablet Activity Will Boost Revenues
Meanwhile, there is an increasing contribution made by consumer activity on tablet devices. For applications such as streamed TV, multiplayer gaming or casino gambling, tablets offer a richer, more immersive experience than smartphones. This is already translating into markedly higher usage – and consumer spend – on selected apps within these areas.
Other key findings from the report include:
• Far East & China will account for the largest share of mobile entertainment revenues throughout the forecast period.
• While network operators have largely been bypassed by OTT storefronts, they should seek to leverage their billing relationship to retain a share of entertainment revenues.
The ‘Mobile ~ Now That’s Entertainment!’ whitepaper is available to download from the Juniper website together with further details of the full report.
About the author
Dr. Windsor Holden is the author of the report, working at Juniper Research, which provides research and analytical services to the global hi-tech communications sector, providing consultancy, analyst reports and industry commentary.