Mobile entertainment heads for the big time

Providers have not focused enough on the end user for mobile media and entertainment

Revenue from mobile media and entertainment (MME) services in the US will more than double during the next five years, according to new research.

Analysys reports that US MME services (excluding messaging, and mobile browsing and data charges) generated $3.1bn in revenue in 2007.

Revenues will grow to $6.6bn in 2012, at a compound annual growth rate of 16.3 per cent.

The strongest growth is not expected to occur until after 2010, as the technical and market environment for MME services improves.

The latest Analysys report found that 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.

The study also forecasts 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 (operator-billed and non-operator-billed) will develop," said Katrina Bond, co-author of the report.

The analyst believes that providers have not focused enough on the end user experience for MME services, and that frustration when the experience does not meet their expectations has inhibited the growth of some services.

Analysys forecasts that MME services will account for 12.3 per cent 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.

"Operators, content providers and device manufacturers will have to work together to increase subscriber awareness of MME offerings and 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 is compelling and complementary to the subscriber's experience of entertainment across other media."

• Analysys report: Mobile Media and Entertainment in the US: forecasts 2007-2012