Mobile entertainment approaches box office revenue levels

DetailsMichelle Clancy | 14 January 2015

Americans are now spending almost as much on smartphone and tablet entertainment as at the box office.

In 2014, mobile entertainment generated $9.14 billion in revenue, fast approaching the roughly $10 billion per year the US box office generates from ticket sales, according to SNL Kagan. Mobile video is the second largest revenue category.

The combined revenue from mobile games, video, music and location-based services (LBS) has grown at a 50% CAGR since 2011when it totalled $2.71 billion.

Mobile video is changing in terms of the opportunity, the firm said in its report. Most mobile video revenue is derived not from the carrier-based mobile video subscription services, which have flatlined, but from strong advertising revenue growth and mobile views at sites like YouTube. In 2014, it estimated that mobile video generated $1.8 billion in revenue in the US, primarily from advertising.