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December 11, 2013

Mobile and tablet entertainment revenue to reach $75bn by 2017

Mobile entertainment services may reach an estimated $39bn in 2013.

By CBR Staff Writer

Mobile entertainment service revenue is expected to reach about $75bn by 2017 rising from $39bn in 2013, according to a report from Juniper Research.

The report revealed that the evolution of more sophisticated monetisation strategies, allied to a nascent ecosystem of app-centric mobile devices, such as smart watches would drive the mobile entertainment service revenue.

The games segment is expected to generate the largest share of revenue during the forecast period, while majority of the revenues are expected to come from the freemium model.

During the forecast period leisure and eReader apps segment covering categories like News, Navigation and Shopping are expected to experience strong growth.

According to the report, the 2013 Christmas period is also expected to see a clear increase in the mobile entertainment revenues.

Juniper Research report author Sian Rowlands said Christmas provides the biggest opportunity for mobile entertainment providers in terms of exposure.

"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," Rowlands added.

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The Far East and China regions are expected to hold the largest share of mobile entertainment revenues by 2017, while the adult sector with revenues diluted by free and pirated content, is expected to record lower growth during the period.

The report reveals that the app discovery is expected to pose main challenge for all those in the mobile entertainment ecosystem.

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