US mobile media and entertainment market to see stronger growth from 2010 onward, says Analysys

Revenue from mobile media and
entertainment (MME) services in the US will more than double during the
next five years, according to the latest research from Analysys, the
global advisers on telecoms, IT and digital media (www.analysys.com [1]). US
MME services (excluding messaging, and mobile browsing and data charges)
generated US$3.1 billion in revenue in 2007, and Analysys Research
forecasts that revenue will grow to $6.6 billion in 2012, at a compound
annual growth rate of 16.3%. The strongest growth will not occur until
after 2010, as the technical and market environment for MME services
improves, according to the latest Analysys report, Mobile Media and
Entertainment in the US: forecasts 2007-2012.

Key trends that are driving market growth include:
*       Improvements to service accessibility: mobile Web browsing
platforms will improve and facilitate access to off-deck content, and
presentation of off-deck content will become more streamlined and user
friendly.
*       Wider availability of content, driven in part by
higher-generation network and device penetration: "As 3G, 3.5G and
Qualcomm's MediaFLO network coverage increases, a greater range of
services will become available to a wider audience, and off-deck content
markets (both operator-billed and non-operator-billed) will develop,"
said Katrina Bond, co-author of the report. "Non-operator-billed revenue
from MME content and services will increase significantly during
2007-2012, and will account for $1.3 billion, or nearly 20%, of MME
revenue by 2012."
*       Improvements to service usability: providers have not focused
enough on the end-user experience for MME services, and users'
frustration when the experience does not meet their expectations has
inhibited the growth of some services.
*       Simplified and more attractive pricing of MME content and
applications, as well as mobile data access: complex pricing, high data
charges, and unfavorable revenue-sharing arrangements for content
providers have inhibited growth in the MME market.

Analysys Research forecasts that MME services will account for 12.3% of
non-voice service revenue in the US by 2012. Mobile TV and VoD services
will experience the highest growth rate of any MME service during the
next five years. When combined, broadcast and unicast TV and video
services will account for 36% of MME revenue by 2012. By contrast,
revenue from personalization services will decline from 47% of total MME
revenue in 2007 to 17% in 2012.

"Operators, content providers and device manufacturers will have to work
together to increase subscriber awareness of MME offerings and to ensure
straightforward pricing, and simpler purchase and delivery processes,"
said Alexandra Rehak, co-author of the report. "It is also critical that
the user experience of MME services be compelling and complementary to
the subscriber's experience of entertainment across other media."

Mobile Media and Entertainment in the US: forecasts 2007-2012 provides
forecasts for subscriber numbers, adoption rates, ARPU and revenue for
mobile MME services. The forecasts are broken down by prepaid and
contract segments, as well as by technology generation. Market drivers
and barriers to growth are analysed for the overall MME market and for
individual mobile service types. The specific mobile services discussed
include music, TV and video on demand, games, social networking and
user-generated content, browsing and information services (including
location-based services), adult content and mobile advertising. The
report examines the drivers and barriers that will shape the US MME
market, identifies key market participants and evaluates market growth
opportunities.

The report is available to purchase online at
http://research.analysys.com/store [2], priced at $3000 (or GBP1500 plus
VAT).

Please enquire for other options, including bundled pricing for
purchasing this report together with the companion report, Mobile Media
and Entertainment in the US: value chains and pricing models, which
discusses business models and end-user pricing for MME services in the
US.

For more information, contact the press office on +44 (0)1223 460600 or
email press@analysys.com [3].

About Analysys (www.analysys.com [1])
Analysys provides strategy and management consultancy, information
services and start-up support throughout the telecommunications, IT and
media sector. Its grasp of market dynamics, coupled with creativity,
rigor and renowned objectivity, enables Analysys to consistently exceed
the high levels of quality and innovation that its clients expect. The
company has over 160 staff worldwide, and, as part of the Analysys Mason
Group, has offices in Cambridge, Dublin, Edinburgh, London, Madrid,
Manchester, Milan, Paris, Singapore and Washington DC.