Mobile entertainment revenues to hit $65 billion 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 $65 billion annually by 2016, up from $36 billion last year.



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 $65 billion annually by 2016, up from $36 billion last year.


The report by Juniper Research (Hampshire, UK) 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 ringback 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, says Juniper Research.


Meanwhile, report author Dr Windsor Holden observed 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.”


The report also predicts that the Far East and China will account for the largest share of mobile entertainment revenues throughout the forecast period. Also, 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.