Mobile Market to Boom, Games to Suffer?

(c) Next Generation

New mobile research from Screen Digest analyzing the impact of gaming, music and TV on the mobile phone industry through to 2011 suggests that the mobile gaming market will stall unless current business models are adapted.

As phone penetration reaches saturation point in a number of regions, it is believed that mobile operators will increasingly focus on media content to achieve differentiation, new subscribers and increased revenue.

With gaming being the oldest form of mobile content, Screen Digest mobile analyst David MacQueen believes the market will stall unless current business models are changed to counter the growing focus of mobile operators on delivering music and TV services.

From the release of Snake back in 1997, the mobile gaming industry has grown to be worth €1.6 billion ($2.165 billion) today, with 50% of that revenue emanating from South Korea and Japan. However, market growth is slowing, and according to MacQueen the market will rise incrementally over the next five years to be worth €2 billion ($2.71 billion) by 2011.

In contrast, Screen Digest predicts that the global full track music download market will grow eight fold over the next five years, reaching €1.47 billion ($1.99 billion) by 2011, growth largely driven by an increase in subscription services offering more than just music.

Similarly, the mobile TV market, which offers the newest type of mobile content, looks set to explode over the coming years. Screen Digest forecast revenues of €4.7 billion ($6.36 billion) by 2011 from 140 million subscribers.

According to MacQueen, “Regulatory and competitive pressures have pushed down the average consumer spend on voice and messaging. Mobile operators must now look to new content offerings to deliver the business growth they’ve enjoyed over the past decade. Screen Digest believes that the revenue is out there – and operators should be looking to TV, music and games to deliver it.”