Report: Mobile Revenue to Soar

LOS ANGELES — A new report by the Mobile Entertainment Forum (MEF) predicts that mobile revenues will surge by more than a third in the coming year.

MEF's Business Confidence Index (BCI), its third such report, reveals that the mobile industry remains confident of future growth regardless of any current economic challenges; and cites an anticipated increase in revenue of 33 percent — a figure which reflects a six percent climb over the growth rate predicted in early 2009.

According to the association, the Mobile Entertainment Forum is the global trade association of the mobile media industry, "working on behalf of its diverse membership to drive mobile entertainment adoption, shape regulation and deliver competitive advantage to its members."

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

"A [six percent] 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," Bud added. "This quiet confidence and positive outlook suggests that we are going to see some exciting opportunities developing within our industry."

"The results point to a divide between the established and emerging markets," MEF Executive Director, Rimma Perelmuter, offered. "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 and 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," Perelmuter added.

According to Mark Harding, Director of Digital Content at KPMG, the service firm which compiled the report's findings, games, video, music, social networking and infotainment marketed directly to consumers will drive much of the growth.

"Paid for content is still a big revenue generator for the mobile media sector," Harding said, "with respondents predicting that 63 percent of their revenue over the next quarter will come from both subscription and one off purchases."

"The survey results also show that the well publicized growth of applications is developing into tangible revenue streams," Harding offered. "14 percent 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," Harding concluded. "These results demonstrate what can be achieved through a positive consumer experience and that consumers are willing to pay for content they value."

The MEF estimates the mobile entertainment industry to be worth some $32bn annually. The latest survey, available to MEF members, includes responses "from across the mobile entertainment value chain, from operators to content owners, billing aggregators and service providers." Members were reportedly asked fifteen questions relating to their confidence in the mobile value chain, including questions about revenue, headcount and marketing decisions, along with questions about the respondent's confidence in different types of mobile content.

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