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European content market to reach $40B, says research

GOTHENBURG, Sweden-The mobile content and entertainment services market in Western Europe could reach nearly $40 billion by 2012, according to a new report from Berg Insight.

The leading services in the region will be games, sports content, music and multimedia downloads, and content messaging, said the report. Adult content also will provide an important revenue stream, said the firm.

Mobile TV services, such as those being launched by Orange plc, TeliaSonera AB and Vodafone Group plc, are not expected to entice customers into monthly TV plans until transmissions reach broadcast quality, said the group. That is not expected until after 2012 in most markets.

Still TV will influence revenue growth in the segment through streamed and downloaded clips, game tie-ins, interactive TV and branded content services, said Berg.

“There are so many advanced feature phones in circulation now, and people are starting to get accustomed to using these features,” said Julie Robson, the author of the report. “At the moment, around 15 percent of mobile subscribers use their phones to access content and entertainment services on a regular basis (i.e., at least once a month). By 2012 we would realistically expect that figure to be 50 percent.”

The report also noted download services such as ringtones and icons are beginning to suffer significant price erosion, and by next year games could overtake logos and ringtones as the most popular mobile content and entertainment service category.

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