Music, browsing and video services will be the key drivers behind the growth of the Western European mobile entertainment market, according to a new report called Mobile Entertainment in Western Europe: value chain and forecasts 2006–11.
The report is published by Analysys.
Music in particular is expected to experience tremendous growth, with revenues rising by more than 75% per year to reach EUR3.4 billion by 2011.
However, the report cautions that while revenues for mobile broadcast TV services will be considerable in the longer term, operators will struggle to recoup their initial infrastructure and spectrum costs
Key findings from the report include:
•Total mobile content revenue is forecast to grow at a compound annual growth rate of 29.2%, from EUR4.9 billion in 2005 to EUR23.4 billion in 2011.
•Complex pricing and billing structures have deterred potential repeat purchasers, and operators must implement a range of transparent pricing options while devising a variety of attractively priced content bundles.
•The mobile value chain has become increasingly elaborate and confused, with operators, owners of content rights and vendors seeking to become aggregators.
Other key growth factors and challenges facing this industry, such as consumer awareness of services, ease of use, pricing and billing, device features, standardisation, digital rights management, and regulation, are covered in the report.