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Mobile entertainment revenue set for growth

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Games and infotainment are set to drive mobile entertainment revenues to $65-billion by 2016.

This is according to a new report from Juniper Research, which has found that strong growth amongs games and infotainment applications – in part fostered by a burgeoning consumer tablet market – will push mobile entertainment revenues to more than $65-billion annually by 2016, up from $36-billion last year.

The report, “Mobile Entertainment Strategies: Business Models & Forecasts 2012-2016”, notes 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

In addition, 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.

Meanwhile, report author Dr Windsor Holden observes the 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,” he said. “This is already translating into markedly higher usage – and consumer spend – on selected apps within these areas.”

In addition, the Far East and China will account for the largest share of mobile entertainment revenues throughout the forecast period.

And, 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.