Forecast: Mobile content revenues to reach $65B in 2016, driven by games, video


Annual revenues generated from content delivered to mobile phones and tablets are on pace to surge roughly $25 billion over the next three years, reaching $65 billion worldwide by 2016, Juniper Research forecasts.

Increasing mobile game, video and e-book purchases via tablets will fuel revenue growth in the years to come, Juniper said. E-books currently dominate tablet media revenues, led by e-reader applications like Amazon's (NASDAQ:AMZN) Kindle and Barnes & Noble's Nook. However, both free and premium video apps are on the upswing, and consumer gaming spend is expected to migrate from dedicated portable gaming devices like the Nintendo 3DS and Sony's PlayStation Vita. The convergence of the gaming and the social networking segments is also driving monetization opportunities, Juniper added.

Although credit and debit card transactions remain the primary billing mechanism, Juniper also anticipates expanded content monetization opportunities via direct carrier billing, led by storefronts like Google (NASDAQ:GOOG) Play and BlackBerry (NASDAQ:BBRY) World. "While the availability of direct carrier billing is patchy, the various benefits which the mechanism offers--higher conversion rates, opportunities to monetize unbanked customers--suggest that deployments will rise significantly in the medium term," report author Windsor Holden said.

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