12 October 2009

Mobile media industry predicts revenue growth of 33% for the next year

MEF’s third Business Confidence Index (BCI), compiled by KPMG, shows us that the $32bn global entertainment market industry remains quietly confident about its continued growth, despite the economic challenges faced globally. An average revenue growth of 33% has been predicted for the coming year, which is an increase of 6% on that being predicted at the beginning of 2009.

Commenting on the findings, Andrew Bud, Global Chair of MEF, said: “The latest findings demonstrate that the BCI continues to offer us invaluable insight into the state of our industry. The economic downturn has proved challenging for us all but despite this, overall confidence in the growth of the market remains steady.

A 6% increase in the predicted growth of the market since the beginning of the year shows that despite a general downturn and a degree of belt-tightening in some areas, any remaining uncertainty is offset by a sense of optimism within the industry looking forward. This quiet confidence and positive outlook suggests that we are going to see some exciting opportunities developing within our industry.”

Rimma Perelmuter, Executive Director at MEF, added that: “The results point to a divide between the established and emerging markets. Our members in the established markets such as Western Europe and North America are forecasting relatively stable revenues but see emerging markets such as Central & Latin America, as well as India, driving proportionately larger revenue increases for the coming year. With the majority of respondents also telling us that their actual performance for the last quarter was either in line with or better than budgeted, the industry has demonstrated resilience and confidence of heading in the right direction. ”

Mark Harding, Director of Digital Content at KPMG, who analysed the survey findings, stated that: “Paid for content is still a big revenue generator for the mobile media sector, with respondents predicting that 63% of their revenue over the next quarter will come from both subscription and one off purchases. Games, video, music, social networking and infotainment continue to lead the way.

The survey results also show that the well publicised growth of applications is developing into tangible revenue streams. 14% of all revenue is now projected to come from applications, with an expectation that over half of this revenue will be generated through consumers buying them. This is a new and fast growing revenue stream for the industry. These results demonstrate what can be achieved through a positive consumer experience and that consumers are willing to pay for content they value.”

About the research

The Mobile Entertainment Forum ‘Business Confidence Index’ (BCI) was launched in January 2009 to analyse revenue and business trends in the $32bn mobile entertainment industry.

The responses to the BCI survey, which was completed by MEF member companies, are analysed by KPMG. MEF members were surveyed from across the mobile entertainment value chain, from operators to content owners, billing aggregators and service providers. MEF members were asked a total of fifteen questions relating to their confidence in the mobile entertainment value chain. Questions relating to revenue, headcount and marketing decisions were asked alongside those about the confidence in different types of mobile content.

The MEF BCI is conducted on a quarterly basis, with a report on the findings of the Business Confidence Index available to MEF members at www.m-e-f.org

1 comment:

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