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Published on FierceWireless (http://www.fiercewireless.com)

Music, Video: Fastest-Growing Apps in Mobile Entertainment

By Jason
Created Nov 5 2007 - 9:58am

SINGAPORE--(BUSINESS WIRE)--The Asia-Pacific (mobile) premium content market grew 57.4 percent in
2006 on the back of rising popularity of mobile multimedia content and a
fast-growing mobile data services segment as users demand a richer
experience on their mobile devices.

New analysis from growth consulting company, Frost & Sullivan
(http://www.mobileandwireless.frost.com [1]),
Asia Pacific Premium Content Market, estimates that the
market - covering ten Asia-Pacific countries ex-Japan and Australasia -
earned revenues of US$5.98 billion in 2006. Of this, an estimated 22.8
percent were revenues retained by mobile operators, while the remaining
US$4.62 billion were third-party content provider revenue share.

If you are interested in a virtual brochure, which provides service
providers, vendors/manufacturers, end users, and other industry
participants with an overview of the latest analysis of the Asia Pacific
Premium Content Market, then send an e-mail to Sarah Lourdes, Corporate
Communications, at sarah.lourdes@frost.com [2]
with your full name, company name, title, telephone number, fax number
and e-mail address. Upon receipt of the above information, an overview
will be sent to you by e-mail.

The Asia-Pacific premium content market is forecasted to grow at a CAGR
(compound annual growth rate) of 24.6 percent to reach US$22.38 billion
by end-2012.

“We anticipate much of this growth to be
driven by factors such as greater 3G coverage and deployment, as well as
the declining cost of advanced multimedia handsets,”
notes Frost & Sullivan senior research analyst Jeff Teh. “3G
enhances user experience and encourages the development of compelling
premium content applications such as music and video, identified as one
of the fastest-growing segments in mobile entertainment.”

While messaging is likely to continue as the biggest contributor to
overall mobile data revenues, recent trends have seen an uptake in
premium content beyond traditional applications such as ringtones and
wallpapers, to newer ones such as mobile music and video.

Mobile entertainment services continued to dominate at 68.5 percent of
the total premium content revenues (or US$4.09 billion) in 2006, given
the growing popularity of ringback tones (RBT), music and video
downloads, and mobile gaming in Asia-Pac.

Mobile music and video accounted for 12.1 percent of mobile
entertainment revenues (or US$495 million) last year and this is
expected to grow to 21.6 percent (to US$3.1 billion) by 2012. Music and
video applications are believed to hold the strongest potential to
increase operators’ average revenue per user
(ARPU).

However, sideloading of content over alternative wireline sources poses
a threat. A large number of mobile users in developed countries, for
instance, have easy and frequent access to the Internet, and may feel
more inclined to use this medium for entertainment and information
services.

“The availability of well-connected and
ubiquitous Internet access enhances consumer preference for less
expensive online content in many countries,”
says Teh.

Mobile operators and premium content providers across Asia-Pacific have
also started exploring newer business models and securing content
partnerships in a bid to provide enhanced services to subscribers.

“Mobile advertising is emerging as an
alternative revenue generator for mobile operators and content providers,”
he says. “Operators are already exploring
methods of providing advertising without being intrusive, focusing on
personalization to deliver properly targeted advertisements.”

“With the ad-sponsored model, subscribers may
need to pay only a small sum for content or not at all in time to come,”
he adds.

The Asia Pacific Premium Content Market study is part of the Mobile
& Wireless Subscription
, which also includes research in the
following markets: mobile communications, mobile enterprise,
location-based services, and mobile video services. All research
services included in subscriptions provide detailed market opportunities
and industry trends that have been evaluated following extensive
interviews with market participants. Analyst interviews are available to
the press.

Frost & Sullivan, the Growth Consulting Company, partners
with clients to accelerate their growth. The company's Growth
Partnership Services, Growth Consulting and Career Best Practices
empower clients to create a growth focused culture that generates,
evaluates and implements effective growth strategies. Frost & Sullivan
employs over 45 years of experience in partnering with Global 1000
companies, emerging businesses and the investment community from more
than 30 offices on six continents. For more information about Frost &
Sullivan’s
Growth Partnerships, visit http://www.frost.com [3].


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