Mobile entertainment market to triple

The global mobile entertainment market is set to rise from $20bn in 2007 to more than $64bn by 2012, according to Juniper Research.

Mobile music, games and TV will be the major contributors, but sectors such as user-generated content, gambling and adult entertainment will also play a part.

The report found that mobile music will remain the largest single sector of the mobile entertainment industry over the next five years.

Revenues from music are predicted to rise from $9bn in 2007 to $17.5bn in 2012, bolstered by the increasing availability of paid-for and rented full-track downloads and streamed services.

Mobile games will rank second in terms of end-user generated revenues, boosted by rapid growth in mass market casual gaming. Revenues are expected to rise from just under $5bn in 2007 to nearly $16bn in 2012.

Juniper also expects strong growth from mobile TV as developed markets launch dedicated mobile broadcast networks.

"With revenues from voice services declining and messaging revenues flat-lining, last year saw a number of more sophisticated entertainment services begin to fulfil their potential and redress the balance," said Dr Windsor Holden, the report's author.

"More widespread penetration of 3G handsets, or entertainment-focused 2.5G handsets like the iPhone, will mean a much greater surge in the adoption and overall use of rich media services."

Although the adult and gambling sectors add to these revenues, regulations and prohibitions will continue to limit growth, the research found.

However, Juniper reckons that restrictions on gambling services in the key US market will ease in the medium term.

China and the Far East will remain the largest regional markets for mobile entertainment throughout the period covered by the report, with revenues rising from $8.5bn in 2007 to nearly $21.3bn by 2012.

Overall, difficulties with the user interface, network speed and the excessive cost of data services are expected to be the biggest hurdles to increased adoption of mobile entertainment services.