Mobile content revenue to boom despite bust

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The mobile entertainment industry is still confident of revenue growth despite the global recession, according to a report released today.

The quarterly Mobile Entertainment Forum Business Confidence Index (MEF BCI) has predicted a 28 per cent growth in revenue for mobile content over the next year.

The research surveyed member companies of the MEF asking them 15 questions about their confidence in the mobile phone environment.

Andrew Bud, global chair of MEF, said: “In spite of an incredibly difficult economic landscape, the prediction for average revenue growth in the mobile content sector is up one per cent on the annual growth prediction from the last BCI to 28 per cent. This echoes the finding that 81 per cent of respondents are as confident about the future of their organisation as they were at the end of last year.”

Social networking is one of the leading areas keeping the industry’s head above water during the recession.

Rimma Perelmuter, executive director at MEF, comments: “The mobile entertainment industry is relatively stable due to proven business models, with more than 50 per cent 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 results were compiled by KPMG who cited the rising popularity of smartphones as another reason why the industry is sustaining growth.

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.”

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