Reports

MEF: Ad-funded entertainment to $336M by 2013

Thu, 29 May 2008 06:59:56 -0400

The U.S. market for ad-funded mobile entertainment will grow to $336.35 million by 2013, expanding the total mobile media market by 4.6 percent, according to a new forecast released by the Mobile Entertainment Forum global trade association. The MEF says brand-subsidized content will yield the majority of revenues at $262.7 million, with the remainder generated by premium content upselling. Mobile video and TV are expected to account for 41.4 percent of ad-funded revenues within five years, followed by music at 34.5 percent and gaming at 24.1 percent.

For more on the MEF forecast:
- read this release

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Vodafone CEO Sarin to step down

Tue, 27 May 2008 06:59:57 -0400

European telecoms giant Vodafone Group announced the resignation of CEO Arun Sarin, who will exit the company July 29. Deputy chief executive Vittorio Colao was appointed his replacement. Sarin took over the Vodafone helm in mid-2003, and under his stewardship the company expanded into emerging markets including Romania, Czech Republic, Turkey and India, growing its global subscriber base from 120 million to over 260 million. On Tuesday Vodafone also announced its first quarter earnings, reporting group revenue of $70.1 billion, buoyed by data revenue growth of 35.7 percent. "I felt the timing was right to hand over as the company is in a good position strategically," Sarin said during a Tuesday conference call. "I've achieved what I set out to achieve when I took the position."

For more on Sarin's resignation:
- read this release

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VeriSign: Messaging enjoys record-setting Q1

Tue, 27 May 2008 06:59:55 -0400

Network infrastructure services provider VeriSign announced its Mobile Messaging Index for Q1 2008 reports record-breaking single-day and quarterly messaging totals, with 2008 as a whole on pace to break the annual mobile messaging record as well. According to VeriSign, its combined mobile messaging networks enabled more than 43 billion messages in the first quarter, up more than 34 percent from the previous quarter and an increase of more than 150 percent year-over-year. Valentine's Day alone yielded more than 538 million SMS messages across the VeriSign network--the firm estimates the Hallmark holiday generated more than 2.12 billion mobile messages on networks worldwide. At current rates, 2008 is poised to surpass the previous year's combined 96 billion mobile messages during the end of the third quarter--VeriSign adds that as of March 31, it handled 45 percent as many mobile messages as it did in all of 2007.

For more on VeriSign's mobile messaging report:
- read this release

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Report: Data exceeds 30% of revs for some carriers

Mon, 19 May 2008 06:59:56 -0400

Data revenues now represent more than 30 percent of total service revenues for some mobile operators, according to a new study released by analysis firm Research and Markets. Noting the ringtone market's shift from a primary to a partial revenue stream alongside emerging mobile content services including ringbacks and full-track downloads, Research and Markets states that mobile video holds the most significant potential, with mobile gaming now growing dramatically in the North American market. The report adds that while the mobile content distribution ecosystem continues to expand, operators still maintain their position of power, a reality reflected in the respective revenue growth patterns of participants across the value chain.

For more on the Research and Markets report:
- read this release

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Mobile digital commerce services top $1B in 2007

Tue, 13 May 2008 06:59:57 -0400

The mobile digital commerce services market grew to $1.1 billion in 2007 according to research firm MultiMedia Intelligence, which forecasts digital commerce service providers will process $1.9 billion in premium mobile music, video and gaming transactions by 2012. MultiMedia Intelligence anticipates that while digital commerce service providers' percentage share of the premium content market will decline over time, growth in new premium content categories will buoy overall market growth, with mobile video leading the charge. The study adds that competitive differentiation hinges on factors including robust, transparent and instantaneous reporting, improved transaction validation and more efficient automation; MultiMedia Intelligence said that revenue leakage remains a significant challenge across the mobile digital commerce services market, especially in the off-deck arena.

For more on the mobile digital commerce services forecast:
- read this release

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Forecast: 550M GPS handsets to ship in 2012

Mon, 12 May 2008 06:59:55 -0400

More than 550 million GPS-enabled handsets will ship by 2012 according to a new forecast released by market intelligence firm ABI Research, which cites the growth of mobile navigation solutions as well as location-based services like friend finders, local search and geotagging for the boost. While ABI notes that operators, handset makers and service providers are all looking to capitalize on LBS applications, widespread adoption hinges on reducing costs, power consumption and footprint of GPS chipsets--ABI points to single chipset technologies and combination chips integrating GPS, Bluetooth and WiFi as primary catalysts to growth. ABI Research principal analyst Dominique Bonte adds that while most CDMA handsets are already GPS-enabled, GPS is also set to become a standard feature in GSM smartphones.

For more on the ABI forecast:
- read this release

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How to make mobile social networks work

Fri, 09 May 2008 07:00:00 -0400

Here's the good news: The U.S. market, which typically lags behind Europe in all things mobile, is actually ahead of the international pace on mobile social networking, according to a new report issued this week by media research firm The Nielsen Company. Here's the bad news: Only about 4 million U.S. wireless subscribers--just 1.6 percent of the total U.S. mobile consumer population--actually access social networks via mobile device. Nielsen reports that the U.K. slightly edges the U.S. on a percentage basis, with 1.7 percent of British mobile subscribers (roughly 810,000 subs in all) visiting social communities during the first quarter of 2008--compare that to Spain (0.8 percent of subscribers, or 291,000 consumers), Italy (0.6 percent, or 293,000 subscribers), France (0.6 percent, or 255,000 subscribers) and Germany (0.2 percent, or 141,000 subscribers).

Despite the underwhelming numbers, Nielsen remains convinced mobile social networking's future is bright, and recent industry trends toward unlimited data pricing plans certainly enhance the social networking market's potential. But while most monetization hopes are pinned to the same targeted advertising model that's supposed to lead conventional online social networking to the promised land, the mobile subscriber totals simply aren't yet big enough to generate significant revenue. Moreover, it seems like a huge mistake to assume mobile social networking is roughly analogous to conventional online social networking anyway--every other media platform is a very different beast on mobile, so why should social networking be any different?

Social networking giant MySpace's forthcoming MySpace Music--a digital retail effort offering consumers free, ad-subsidized streaming content as well as premium downloads--doesn't formally launch until this summer, but its basic approach seems to herald the true future of mobile social networking: Specifically, off-deck content and community destinations where users can make new friends, discover and purchase new music from major and independent labels, and ultimately recommend this new music to their new friends--all within the confines of a single, operator-agnostic mobile website. It's silly to believe that content creation, browsing and sharing ever represented the alpha and omega of the social networking experience--of course MySpace, with its endless numbers of artist websites, would eventually expand its reach into music retail. But especially in mobile, where the user interface makes it so difficult to bounce from one website to the next, the concept of an all-in-one site where consumers can share photos, update their status and purchase a new ringtone in the span of a few clicks carries enormous appeal. Commerce and community belong with each other…and social networking is all about bringing likeminded individuals together. - Jason

Mobile social networking tops 4 million users in U.S.

Thu, 08 May 2008 06:59:59 -0400

More than 4 million U.S. wireless subscribers--1.6 percent of the total U.S. mobile consumer population--now access social networks via mobile device, according to a new study released by media research firm The Nielsen Company. Nielsen finds the U.K. leads Europe in mobile social networking percentage, with 1.7 percent of British mobile subscribers (roughly 810,000 of all subs) visiting social communities during the first quarter of 2008. By comparison, only 0.8 percent of Spanish wireless subs (291,000 consumers) access social networks via the mobile web, followed by Italy at 0.6 percent (293,000 subscribers), France at 0.6 percent (255,000 subs) and Germany at just 0.2 percent (141,000 subs).

Nielsen adds that in the U.S., MySpace.com is the most popular mobile social networking site, logging 2.8 million unique mobile users in December 2007 while rival Facebook enjoyed 1.8 million unique mobile visitors. However, in the U.K., Facebook leads all mobile social networking sites with 557,000 unique mobile users per month in the first quarter, followed by MySpace with 211,000 unique mobile users. Facebook and MySpace.com dominated most other European markets as well, although MSN's Windows Live Spaces led in Italy with 154,000 unique mobile users per month.

For more on the Nielsen study:
- read this release

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Messaging drives T-Mobile USA's Q1 data growth

Thu, 08 May 2008 06:59:58 -0400

T-Mobile USA reported first-quarter net income of $462 million, up from $315 million a year ago--service revenues increased 14 percent to $4.57 billion from $3.99 billion in Q1 2007, growth the operator attributed to an increase of contract customers. T-Mobile USA added 981,000 new customers during the quarter, crossing the 30 million subscriber mark--churn fell to 1.7 percent in Q1 2008, down from 1.9 percent a year ago, although ARPU slipped to $51, a $1 decline from last year. Data services revenues were $760 million in the quarter, accounting for 16.6 percent of ARPU or $8.50 per customer, up from 15.8 percent/ $8.20 in the fourth quarter of 2007 and 14.3 percent/$7.50 in Q1 2007. According to T-Mobile USA, messaging revenues remain the primary driver behind data growth: The operator reports SMS and MMS swelled to 33 billion in the first quarter of 2008, compared to 24 billion in the previous quarter and 16 billion a year earlier. T-Mobile USA cited the popularity of its myFaves unlimited rate plan as a major catalyst behind its messaging growth.

For more on T-Mobile USA's Q1 results:
- read this release

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Study: Digital media revenues rising

Mon, 05 May 2008 06:59:57 -0400

Seventy percent of media and entertainment companies now derive some revenue from alternative channels like on-demand content, digital advertising and user-generated content, according to management consulting firm Accenture's annual Global Media Content Survey. Even though the advertising, film, music, publishing, radio, web, videogame and television execs surveyed indicate their new media revenues yield less than 10 percent of overall revenues, Accenture notes even that small percentage signifies tremendous growth over last year's survey.

When asked to identify the largest drivers of revenue growth over the next five years, 66 percent of respondents cited multi-platform content delivery, far ahead of new content types (24 percent) or new geographies (10 percent). Sixty-three percent of respondents said they will pursue a multi-screen distribution strategy embracing television, online and mobile delivery. Short-form video was cited by 38 percent of respondents as the format generating the greatest growth, followed by online portal/publishing (23 percent) and videogames (18 percent). Sixty-eight percent of respondents identified social media and UGC as major growth opportunities, and 56 percent indicated they are already involved in social media in some capacity. Nearly two-thirds of respondents favor ad-supported business models, with 25 percent pointing to subscription-based services and 11 percent citing pay-per-play services.

The Accenture survey found that 55 percent of respondents believe mobile requires three years to emerge as a true mass-market medium, while the remaining 45 percent feel that evolution will require even more time. Consumer readiness remains the most oft-mentioned barrier to mass mobile uptake, according to 51 percent of respondents--42 percent cited the failure of a consistent user experience, while readiness questions surround both mobile operators and content providers according to 37 percent of respondents.

For more on the Accenture survey:
- read this release

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Nielsen: Mobile extends website reach by 13%

Fri, 02 May 2008 06:59:57 -0400

The mobile web extends the audience reach of many popular Internet sites by an average of 13 percent over home PC traffic alone, according to consumer research firm The Nielsen Company, which adds some categories like weather and entertainment experience audience lifts as high as 22 percent. According to data collected from the Nielsen Mobile and Nielsen Online divisions, the mobile web also increases the frequency of website visits--some consumers access weather sites solely via mobile device, while shopping sites generally boast duplicated audiences that shop from both mobiles and home PCs. Nielsen reports that 87 million U.S. mobile users now subscribe to mobile Internet services, with more than one in ten actively using the mobile web each month.

For more on the Nielsen mobile web report:
- read this release

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British regulators launch mobile content inquiry

Thu, 01 May 2008 06:59:56 -0400

Britain's premium-rate services regulator PhonepayPlus announced it will launch a review of the U.K.'s mobile premium services market following a spate of consumer complaints. PhonepayPlus said the first three months of 2008 alone yielded more than 4,500 consumer complaints specific to premium mobile services, translating to 80 percent of all complaints received and a 40 percent increase over Q1 2007 totals. Between January and March the regulatory body adjudicated on 15 mobile service complaints, resulting in fines of £223,500 (roughly $441,000 U.S.), with recent adjudications on four additional cases resulting in fines of £68,000/$134,000. By comparison, in 2007 PhonepayPlus adjudicated on 33 mobile services, with total fines topping £360,000/$710,000. The review--which PhonepayPlus plans to publish in July--promises to identify critical issues impacting consumers, in particular unsolicited promotions (in particular text messages), price transparency and "free" content, and subscription services.

For more on the PhonepayPlus inquiry:
- read this release

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Forecast: 1.3B subs use local mobile search by 2013

Wed, 30 Apr 2008 06:59:57 -0400

Almost 1.3 billion wireless subscribers worldwide will embrace local mobile search services by 2013 according to a new report from market analysis firm Juniper Research, which also forecasts local search will generate 43 percent of cumulative mobile search advertising revenues between 2008 and 2013. The report cites Western Europe and North America as the regions best suited to local mobile search, thanks to their preponderance of digital information suppliers (e.g., yellow and white pages, city guides, restaurant and entertainment guides and traffic information), reliable mapping data and coverage of points of interest. Juniper adds that ad-supported local search is a key driver, but cautions that advertising effectiveness will fluctuate according to local conditions. While Juniper anticipates total mobile search revenues will reach $4.8 billion by 2013, the firm cautions an "advertising overload" might ultimately hamper adoption.

For more on the Juniper forecast:
- read this release

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Off-deck content revenues grow 20% in 2007

Tue, 29 Apr 2008 06:59:58 -0400

The off-deck mobile content platform market increased almost 20 percent in 2007, accounting for a $3.4 billion share of total $18.5 billion premium mobile content revenues, according to new research by market analysis firm MultiMedia Intelligence. While MultiMedia Intelligence says the North American market is transitioning to a premium mobile content ecosystem dominated by off-deck sales, content discovery and acquisition remains too challenging for consumers--in addition, the firm anticipates operators in the U.S. and Europe will begin instituting strict new guidelines and penalties to curtail questionable and unprofessional off-deck activities, following a precedent recently set by Sprint Nextel. MultiMedia Intelligence adds the premium content market will begin to feel the effects of mobile advertising, with video the dominant driver--ringtones still lead mobile music revenues despite growth in full track downloads, streaming music and ringbacks, although ringtone sales as a whole are in decline.

For more on the MultiMedia Intelligence report:
- read this release

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Mobile social networking revs to $412M by 2012

Mon, 28 Apr 2008 06:59:58 -0400

Citing growing mobile operator support for social networking services, a new forecast issued by consulting firm Frost & Sullivan says revenue from U.S. on-deck mobile social networking services will reach $412 million in 2012. Frost & Sullivan credits the surge to three converging trends: The popularity of Internet social networking services, increasing mobile web penetration and the emergence of mobile advertising. The firm adds the challenge at hand is creating dedicated and effective mobile advertising models that deliver targeted ads to the mobile social community, an evolution requiring close cooperation between ad solution providers, mobile social networking solution providers and mobile operators as well as subscriber willingness to share their personal data. Frost & Sullivan contends mobile ads should be immersive, arguing that displaying banner ads within mobile social networking sessions is insufficient.

"While the extension of popular online social networking communities onto mobile phones is a major growth driver, it is unreasonable to expect the same level of functionality as is offered through the PC," said Frost & Sullivan senior analyst Vikrant Gandhi in a prepared statement. "Mobile social networking services clearly need to be targeted toward mass-market phones in order to gain traction."

For more on the Frost & Sullivan forecast:
- read this release

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Data revenue growth fuels AT&T's Q1 surge

Tue, 22 Apr 2008 06:59:59 -0400

AT&T reported first-quarter profits rose to $3.46 billion, up nearly 22 percent from $2.85 billion in Q1 2007, a surge led by continued growth in wireless. Total wireless revenues increased 18.3 percent versus year-ago revenues of $11.8 billion, with wireless service revenues (excluding handset and accessory sales) growing 17.1 percent to $10.6 billion. Wireless ARPU for Q1 2008 was $50.18, up 2.0 percent over the year-ago quarter--according to AT&T, wireless service ARPU has now posted year-over-year growth across seven consecutive quarters.

AT&T posted first-quarter wireless data revenues of $2.3 billion, up 57.3 percent versus Q1 2007--crediting increases in web access, email, messaging, data access and media bundles for the growth, the operator said data now represents 21.5 percent of its total wireless service revenues, up from 16.0 percent in the first quarter of 2007 and 10.9 percent in the first quarter of 2006. AT&T subscribers sent more than 620 million multimedia messages and 44 billion text messages during Q1, both figures doubling year-ago totals.

For more on AT&T's Q1 results:
- read this release

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Forecast: Full-track mobile revs to $4.2B by 2012

Wed, 09 Apr 2008 06:59:59 -0400

Digital sales represented 10 percent of the total worldwide music market in 2007, up from 6 percent the previous year, and will account for 40 percent of all music purchased worldwide by 2012, according to a new report issued by market research firm In-Stat. Citing the global expansion of broadband services, demand for single-track downloads and expanding music catalogs as key drivers, In-Stat says digital music revenue growth also hinges on sales of full-track mobile downloads in regions outside of market-leading Japan. In-Stat forecasts worldwide full-track mobile downloads revenues will reach roughly $4.2 billion by 2012.

"Digital piracy continues to represent the primary challenge to online music service providers," said In-Stat analyst Stephanie Ethier in a prepared statement. "Other obstacles still include the lack of interoperability between services and devices due to differing digital rights management technologies, and weak consumer demand for subscription-based services. Another potential market inhibitor is the fact that content owners, cellular service providers and handset manufacturers are increasing the amount of marketing and promotion for mobile music."

For more on In-Stat's digital music forecast:
- read this release

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iTunes now largest U.S. music retailer

Fri, 04 Apr 2008 07:59:58 -0400

Apple announced its iTunes digital music storefront is now the largest music retailer in the U.S., surpassing brick-and-mortar giant Wal-Mart for the first time. According to market research firm NPD Group's MusicWatch survey, Apple sold more music in January and February than any other retail outlet--in all, iTunes has now sold more than four billion songs, with a music catalog that spans more than six million tracks. "We launched iTunes less than five years ago, and it has now become the number one music retailer in the world," said Apple's vice president of iTunes Eddy Cue in a prepared statement.

For more on iTunes' ascent:
- read this release

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Forecast: LBS revenue growth to $13.3B by 2013

Fri, 04 Apr 2008 07:59:55 -0400

Mobile location-based services will generate annual global revenues of $13.3 billion by 2013, up from $515 million in 2007, according to a new forecast released by market analysis firm ABI Research. Crediting the growth to new WCDMA and GSM handsets incorporating GPS capabilities as well as consumer demand for personal navigation functionality, ABI also anticipates surging popularity for mobile applications including friend finders, local information searches, family tracker apps and enterprise apps. ABI adds the future of LBS hinges on availability of all-inclusive data tariffs and cross-network service interoperability. "The interesting thing about the LBS content-producing sector is that much of the information is already available," said ABI Research analyst Jamie Moss in a prepared statement. "It's a win-win situation for content providers: They already have established markets for their map and POI data (automotive and telematics), and LBS is yet another that could potentially provide them with considerable additional licensing revenue."

For more on the ABI forecast:
- read this release

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Study: Mobile video image quality, speed vex users

Thu, 27 Mar 2008 07:59:57 -0400

More than half of consumers anticipate mobile video subscriptions will be too expensive to justify adoption, according to a new study conducted by mobile content solutions provider Bamboo MediaCasting and market research firm Synovate. The survey, conducted in early March, found that 51 percent of respondents expect mobile video services will be priced out of their range; among consumers who did not cite cost as a barrier, 45.5 percent anticipate poor image quality, 27 percent expect download speeds will be an issue, 17 percent fear the process will be overly complex, and 10 percent believe their content selection will be limited.

The study also reports that 48 percent of women have concerns with mobile video image quality, compared to 43 percent of men--29 percent of women also expressed doubts about download speeds, a reservation lodged by 25 percent of men. Conversely, 13 percent of men cite concerns about poor content choices, compared to 7 percent of women. Only 21 percent of youths ages 14 to 18 expressed doubts about image quality, less than any other age group--however, 45 percent teens cited download speed as their greatest frustration with mobile video.

"Mobile media technology has clearly come a long way in a very short time, but as these findings suggest, we as an industry need to ensure that consumers have a quality experience every step of the way," said Bamboo MediaCasting CEO Guy Morag in a prepared statement. "The mobile platform is unique--it's not TV and it's not the PC. Carriers and service providers stand to benefit, the closer we all come to providing solutions that don't involve unacceptable compromises." Not coincidentally, Bamboo will formally launch its SilverStripe rich-media delivery solution to U.S. carriers next week at CTIA Wireless 2008.

For more on the Bamboo/Synovate study:
- read this release

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