Mobile Entertainment Forum’s (MEF) fourth Business Confidence Index (BCI), compiled by KPMG, points to signs of recovery and a clear trajectory of revenue growth of 28% for the coming year.
The latest BCI survey of the MEF Membership, representative of the whole mobile media entertainment value chain, demonstrates a fourth consecutive growth prediction since January 2009 and a clear trend that the industry consistently projects growth in the region of 25-35% for the next 12 months.
Andrew Bud, the Global Chair of MEF commented: “Our industry has faced a difficult period, but these latest findings clearly show that confidence in the growth of our industry has not diminished in the last year. 81% of respondents report that their actual performance for the last quarter was either better than or in line with budget, and viewed alongside the consistent and significant market growth predictions being made by our industry is very positive news as we move into a new year.”
Rimma Perelmuter, MEF Executive Director added that: “The BCI demonstrates growing demand for paid-for mobile content. As with previous findings, 61% of revenues for the next quarter are projected to come from subscription and one off purchases. There is also consensus amongst respondents that applications will provide a substantial additional revenue source. Half of the revenue projected to come from applications in the next quarter will be from paid for apps.”
Mark Harding, Director of Digital Content at KPMG, who analysed the survey findings, stated that: “Following some uncertainty in the market over the last 12 months, headcount growth actually exceeded the projections made last quarter and respondents predict further headcount growth in the coming quarter. Applications have developed considerably as a driver of growth over the past 6 months, illustrating the dynamism of this new business model for monetising mobile content."
"The findings also identified regional variations in outlook. Central and South America have demonstrated great potential and confidence, with growth predicted for this region for each quarter to date, up from a projected 2% share for the year ending December 2009 to an actual share of 9% of the market for the year ending September 2009. Respondents believe Africa, the Middle East and China will see increases in revenues for the next 12 months, while established and other emerging markets are forecasting relatively stable revenues. Overall, these are very positive findings following a necessary period of adjustment and refocus.”
Showing posts with label BCI. Show all posts
Showing posts with label BCI. Show all posts
20 January 2010
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
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
23 June 2009
Mobile entertainment industry confident despite economic crisis
The findings of the latest MEF Business Confidence Index (BCI) on the $32bn global mobile entertainment industry has shown that the industry remains confident despite the current economic challenges, predicting average revenue growth of 28% for the coming year. The Mobile Entertainment Fo
rum (MEF) BCI is compiled by KPMG.
Commenting on the findings, Andrew Bud, Global Chair of MEF, said: “A vital part of MEF’s mission is to provide insight in to the market and the BCI is a uniquely valuable tool to do so. This second release begins to reveal the trends in the industry and confirms its optimism about the future.
“In spite of an incredibly difficult economic landscape, the prediction for average revenue growth in the mobile content sector is up 1% on the annual growth prediction from the last BCI to 28%. This echoes the finding that 81% of respondents are as confident about the future of their organisation as they were at the end of last year.”
Rimma Perelmuter, Executive Director at MEF, comments: “The mobile entertainment industry is relatively stable due to proven business models, with more than 50% of total revenue generated from consumer purchased content. Social networking looks set to be the biggest area for growth; followed by games and video; music and ‘infotainment’. It is encouraging to see an optimistic outlook throughout the mobile entertainment value chain, despite uncertainties around forecasting and budgeting.”
The analysis also shows that the ‘marketing mix’ of communication channels within the industry is evolving.
Mark Harding, Director of Digital Content at KPMG, added: “The revenue growth and confidence shown by the sector proves that, despite tougher economic times, consumers are still prepared to spend money on mobile content. The coming of age of the smart phone has no doubt helped to support this, by improving the customer experience and access to exciting mobile applications.
“More organisations in the mobile entertainment value chain are moving their marketing budget towards the industry’s own platform of mobile, at the expense of online and sponsorship and events. However, the mobile entertainment industry’s marketing budgets remained constant over the last quarter and are predicted to remain so over the next, with 87% predicting their marketing budget will remain the same or increase.”
rum (MEF) BCI is compiled by KPMG. Commenting on the findings, Andrew Bud, Global Chair of MEF, said: “A vital part of MEF’s mission is to provide insight in to the market and the BCI is a uniquely valuable tool to do so. This second release begins to reveal the trends in the industry and confirms its optimism about the future.
“In spite of an incredibly difficult economic landscape, the prediction for average revenue growth in the mobile content sector is up 1% on the annual growth prediction from the last BCI to 28%. This echoes the finding that 81% of respondents are as confident about the future of their organisation as they were at the end of last year.”
Rimma Perelmuter, Executive Director at MEF, comments: “The mobile entertainment industry is relatively stable due to proven business models, with more than 50% of total revenue generated from consumer purchased content. Social networking looks set to be the biggest area for growth; followed by games and video; music and ‘infotainment’. It is encouraging to see an optimistic outlook throughout the mobile entertainment value chain, despite uncertainties around forecasting and budgeting.”
The analysis also shows that the ‘marketing mix’ of communication channels within the industry is evolving.
Mark Harding, Director of Digital Content at KPMG, added: “The revenue growth and confidence shown by the sector proves that, despite tougher economic times, consumers are still prepared to spend money on mobile content. The coming of age of the smart phone has no doubt helped to support this, by improving the customer experience and access to exciting mobile applications.
“More organisations in the mobile entertainment value chain are moving their marketing budget towards the industry’s own platform of mobile, at the expense of online and sponsorship and events. However, the mobile entertainment industry’s marketing budgets remained constant over the last quarter and are predicted to remain so over the next, with 87% predicting their marketing budget will remain the same or increase.”
16 February 2009
Mobile entertainment industry confident in face of economic downturn
MEF has launched the first quarterly Business Confidence Index (BCI) for the $32bn global mobile entertainment industry. It reveals that the industry is confident it will continue to grow despite the economic downturn, with MEF members predicting an average revenue growth of 27% in 2009.
“We believe that the quarterly BCI will make a great contribution to the industry, at a time when companies face great uncertainty in their forecasting and budgeting. It is an example of how MEF offers leadership in illuminating the status and trends of our industry. We appreciate the support of KPMG in running this large scale and highly confidential operation.”
The MEF BCI will be conducted on a quarterly basis moving forward. A report on the findings of the first Business Confidence Index can soon be accessed by MEF members at www.m-e-f.org.
The MEF BCI, compiled in collaboration with KPMG, is the first of its kind and was undertaken to gauge the confidence of the mobile entertainment industry and to highlight specific trends over time. Every quarter it surveys MEF members across the globe, representing the entire mobile entertainment value chain.
News of the BCI has already appeared in publications such as Mobile Entertainment and mocoNews.net, and the report can soon be accessed by MEF members at www.m-e-f.org.
"I believe that the BCI’s positive outlook reflects ROI that our industry expects to see in 2009 and beyond after almost a decade of investment in mobile media. With growth anticipated across key segments of the industry, MEF will be working with our members to help them capitalise on new opportunities and address existing bottlenecks presented over the next twelve months.”
"I believe that the BCI’s positive outlook reflects ROI that our industry expects to see in 2009 and beyond after almost a decade of investment in mobile media. With growth anticipated across key segments of the industry, MEF will be working with our members to help them capitalise on new opportunities and address existing bottlenecks presented over the next twelve months.”As well as being optimistic about the growth of the industry as a whole, the MEF BCI identified a number of areas within mobile entertainment which are set to grow throughout 2009. The top five areas of growth were cited as:
When asked whether demand for mobile entertainment consumption would be impacted by the credit crunch, over half of respondents said they saw mobile entertainment as a 'feel good' affordable purchase and it would therefore be resilient to the effects of the downturn.
The MEF BCI also reveals the spread of mobile entertainment revenues across the globe, with China and Central & South America being seen as hotspots over the next twelve months and respondents predicting growth in excess of 50% in both regions.
- Social Networking
- Music
- Video
- Games
- Infotainment
When asked whether demand for mobile entertainment consumption would be impacted by the credit crunch, over half of respondents said they saw mobile entertainment as a 'feel good' affordable purchase and it would therefore be resilient to the effects of the downturn.
The MEF BCI also reveals the spread of mobile entertainment revenues across the globe, with China and Central & South America being seen as hotspots over the next twelve months and respondents predicting growth in excess of 50% in both regions.
“We believe that the quarterly BCI will make a great contribution to the industry, at a time when companies face great uncertainty in their forecasting and budgeting. It is an example of how MEF offers leadership in illuminating the status and trends of our industry. We appreciate the support of KPMG in running this large scale and highly confidential operation.”Andrew Bud, Global Chair of the MEF
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