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Mobile entertainment market will hit $38.1bn by 2011

Report predicts revenue surge

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The mobile phone entertainment market will double over the next five years reaching $38.1bn in 2011, according to a report from Informa Telecoms and Media.

The mobile entertainment market generated worldwide revenues of $18.8bn during 2006, according to the report.

Music and images dominate the space, accounting for 64 per cent of revenues. Music services such as ringtones and downloads generated $7.3m in revenue alone.

According to Informa, the mobile music sector will continue to grow but the market for wallpapers, avatars and other images will shrink. By 2011, images will have fallen to fourth place, behind mobile games and video.

Ringtones and wallpapers, mainstays of mobile entertainment revenue, are becoming less important as consumers upgrade to more advanced handsets which support a wide array of entertainment features, from 3D games and broadcast TV to high-quality music playback.

Mobile games and mobile video, which together represent only one-quarter of mobile entertainment revenues in 2006, will account for close to half of the mobile entertainment market's growth over five years' time.

"Although music services such as ringtones, full track downloads and ringtones will continue to generate the highest proportion of revenues seen in the mobile entertainment industry, mobile TV service revenues are set to sky rocket over the next five years, growing from $178m to more than $1.8bn in 2011," said Daniel Winterbottom, senior analyst at Informa and co-author of the report.

Last month, a report by fellow analyst firm Jupiter predicted that the overall mobile entertainment market will be dominated by the Asia Pacific and European regions. Asia Pacific is expected to contribute 37 per cent (and Europe 35 per cent) to global mobile entertainment revenues by 2011.

The report forecasted that the worldwide mobile adult content market alone will be worth $3.3bn by 2011, up from its current level of $1.4bn, with video-based services expected to account for over 70 per cent of revenue.

Informa Telecoms and Media is a provider of business intelligence and strategic marketing solutions to global telecoms and media markets.

Copyright © 2006, ENN

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