Mobile, tablet entertainment revs to reach $75BN by 2017

Editor | 11-12-2013

More sophisticated monetisation strategies, allied to a nascent ecosystem of app-centric mobile devices, will drive mobile entertainment services revenues to nearly $75 billion by 2017, a survey by Juniper Research has found.

This would be substantial growth from an estimated $39 billion in 2013, the Mobile Entertainment: Leisure, Video, Music, Games, Adult & Gambling 2013-2018 report also revealed. Games will continue to generate the largest share of revenue throughout the forecast period.

Revenues in this sector and most other content categories are now primarily derived through a freemium business model, where mobile content is upsold after an app’s download, via the in-app purchase mechanism, thus enabling the creation of an ongoing revenue stream. However the analyst warned that app discovery remains a key challenge for all those in the mobile entertainment ecosystem to overcome.

Juniper Research also expects to see a clear ‘spike’ in mobile entertainment revenues during the Christmas 2013 period. “Christmas provides the biggest opportunity for mobile entertainment providers in terms of exposure,” noted report author Sian Rowlands. “Storefronts and D2C entertainment brands see a surge in activity on and immediately after Christmas Day as consumers browse and download apps for their new devices, and the recent launch of the iPad Air will undoubtedly exacerbate this.”