Mobile Entertainment Markets

Overview

This wide-ranging research report provides a detailed summary of the current state of, and future prospects for, the global mobile entertainment industry and includes revenue and subscriber forecasts for all major segments (mobile TV; mobile gambling; mobile games; mobile UGC; mobile adult; mobile music and infotainment).  This second edition provides consolidated revenue forecasts for the entire mobile entertainment market, broken down by eight key regions, as well as an overview of the relevant mobile technologies and an in depth study of the major players within each service industry.  The comprehensive study also includes an exploration of the key market drivers and constraints within the mobile entertainment field.  This highly regarded appraisal of the markets within this rapidly expanding industry offers a practical look at the opportunities for new and existing players and is vital for any organisation intent on maximising their revenues from mobile entertainment.

Key questions the report answers:

• What strategies should operators, vendors and publishers employ to maximise their respective returns in the mobile entertainment market?
• What is the current and future size of the mobile entertainment market?
• What are and what will be the most lucrative mobile entertainment services?
• What are the key drivers in the mobile entertainment market?
• What impact has 3G had on the mobile entertainment market?
• What are the major hurdles to greater adoption, and usage, of mobile entertainment services?
• How has the mobile entertainment value chain developed?
• Who are the major players in the mobile entertainment market?
• Which services are likely to be constrained by national and international regulation?

Table of Contents

Executive Summary

1. Technology

1.1 Introduction

1.2 2G

1.2.1 Communication Technologies of 2G

i. GSM

ii. TDMA

iii. CDMA

iv. D-AMPS

1.2.2 Data Services

i. SMS

a. The Working of SMS

Figure 1.1: SMS Message Flow

b. Types of Messaging Services

- Mobile-originated SMS

- Mobile-terminated SMS

c. Premium-rate SMS (PRSMS)

1.3 2.5 & 2.75G

1.3.1 Communication Technologies of 2.5/2.75G

i. GPRS

ii. EDGE

iii. CDMA2000

1.3.2 Data Services

i. MMS

a. How Does MMS Work?

Figure 1.2: MMS Application Services

b. MMS Services

- MMS Entertainment and Information Services

Figure 1.3: Nokia’s 6280 3G Handset Supporting Video Streaming

c. Personalisation

1.3.3 The SMS/MMS Value Chain

Figure 1.4: SMS/MMS Value Chain

1.4 3G

Figure 1.5 3G Access Technologies

Figure 1.6: Growth in 3G Subscriber Base by Technology, 2002 - Q1 2007

Figure 1.7: Percentage of Mobile Users Who Own 3G Devices, December 2006 (Selected Countries)

Figure 1.8: Global 3G Subscriber Base, December 2006

1.4.1 UMTS

Figure 1.9: Evolution of UMTS

i. WCDMA

ii. EV-DO

iii. TD-SCDMA

1.5 Beyond 3G

1.5.1 HSPA

1.5.2 3GLTE

1.5.3 CDMA2000 1x EV-DO Revisions A and B

1.5.4 UMB

1.5.5 Mobile WiMAX 802.16e-2005

Figure 1.10: WiMAX Timeline

1.6 Mobile Technologies Compared

Table 1.1: Comparative Chart of Mobile Technologies

1.7 Other Enabling Technologies

1.7.1 Wireless Internet Technologies

i. WAP

a. The Development of WAP

b. The Future of WAP – Where is WAP Heading?

Figure 1.11: Future Path of WAP

ii. The i-mode Alternative

Figure 1.12: NTT DoCoMo, i-mode Subscriber Growth (m) and i-mode Penetration of Total User Base (%) 2000-Q2 2007

1.7.2 Languages, Platforms and Operating Systems

i. Languages

a. Java

ii. Platforms

a. J2ME

b. BREW

iii. Operating Systems

a. Palm OS

b. Symbian

c. Windows Mobile

1.7.3 Other Relevant Technologies and Standards

i. MP3

Figure 1.13: MP3 Phones: Nokia N91 and Sony Ericsson K800

ii. MP4

iii. MIDI

iv. Bluetooth

2. Cellular Market Growth

2.1 Introduction

2.2 Growth of the Cellular Market

2.2.1 Global Cellular Subscriber Market

Figure 2.1: Cellular Subscriber Growth (m) by Region, 2005-2012

Table 2.1: Cellular Subscriber Growth (m) by Region, 2005-2012

Figure 2.2: Cellular Subscriber Base, Market Share by Region (%), 2005-2012

Figure 2.3: Cellular Subscribers Penetration (%) by Region

2.2.2 Leading Mobile Operator Groups by Subscriber Base

Table 2.2: Leading Mobile Operator Groups by Subscriber Base (m) Q1 2007

2.2.3 Growth of 3G

Table 2.3: Global Cellular Subscriber Forecasts (m) by Technology 2007-2012

Figure 2.4: Global Cellular Subscriber Forecasts (m) by Technology 2007-2012

2.3 Regional Cellular Market Growth

2.3.1 North America

Figure 2.5: North American Cellular Subscriber Forecasts (m) by Technology 2007-2012

Table 2.4: North American Cellular Subscriber Forecasts (m) by Technology 2007-2012

2.3.2 South America

Figure 2.6: South American Cellular Subscriber Forecasts (m) by Technology 2007-2012

Table 2.5: South American Cellular Subscriber Forecasts (m) by Technology 2007-2012

2.3.3 Western Europe

Figure 2.7: Western Europe Cellular Subscriber Forecasts (m) by Technology 2007-2012

Table 2.6: Western Europe Cellular Subscriber Forecasts (m) by Technology 2007-2012

2.3.4 Eastern Europe

Figure 2.8: Eastern Europe Cellular Subscriber Forecasts (m) by Technology 2007-2012

Table 2.7: Eastern Europe Cellular Subscriber Forecasts (m) by Technology    2007-2012

2.3.5 Far East & China

Figure 2.9: Far East & China Cellular Subscriber Forecasts (m) by Technology 2007-2012

Table 2.8: Far East & China Cellular Subscriber Forecasts (m) by Technology 2007-2012

2.3.6 Indian Sub Continent

Figure 2.10: Indian Sub Continent Cellular Subscriber Forecasts (m) by Technology 2007-2012

Table 2.9: Indian Sub Continent Cellular Subscriber Forecasts (m) by Technology 2007-2012

2.3.7 Rest of Asia Pacific

Figure 2.11: Rest of Asia Pacific Cellular Subscriber Forecasts (m) by Technology 2007-2012

Table 2.10: Far East & China Cellular Subscriber Forecasts (m) by Technology 2007-2012

2.3.8 Middle East & Africa

Figure 2.12: Middle East & Africa Cellular Subscriber Forecasts (m) by Technology 2007-2012

Table 2.11: Middle East & Africa Cellular Subscriber Forecasts (m) by Technology 2007-2012

2.4 The Opportunity for Mobile Entertainment

Figure 2.13: Percentage of Operator-billed ARPU Attributable to Mobile Entertainment Services, Selected Markets in 2006

Figure 2.14: Value of Operator-billed ARPU ($) Attributable to Mobile Entertainment Services, Selected Markets in 2006

Figure 2.15: Monthly Voice ARPU ($), UK, Germany, Italy and US, 2003-2006

3. Mobile Entertainment Market Development

3.1 Introduction

3.2 Types of Mobile Entertainment Service

3.2.1 Mobile Gambling

i. Casino Style Gambling

ii. Lotteries

iii. Sports Betting

iv. Betting Exchanges

Future Mobile Awards for Mobile Gambling

GOLD AWARD – Spin3

SILVER AWARD – Probability

3.2.2 Mobile Adult Content

i. Text-based Adult Services

ii. Images

iii.Moantones

iv. Erotic Games

v. Video-Based Services

Future Mobile Awards for Mobile Adult Services

GOLD AWARD – Cherrysauce

SILVER AWARD – PhoneBox Entertainment

3.2.3 Mobile Games

Table 3.1: Games Genre and Examples (with Publisher)

i. Action Games

ii. Logic/Puzzle/Skill Games

iii. Sports and Racing Games

iv. Arcade Games

v. Role Playing Games

vi. Card and Casino Games

vii. Movie Games

viii. Adult Games

ix. Lifestyle Games

Future Mobile Awards for Mobile Games

GOLD AWARD – EA Mobile

SILVER AWARD – Gameloft

3.2.4 Mobile Music

Future Mobile Awards for Mobile Music

GOLD AWARD – Omnifone

SILVER AWARD – Apple

3.2.5 Mobile TV

i. Mobile Streamed TV

ii. Mobile Broadcast TV

Future Mobile Awards for Mobile TV

GOLD AWARD – 3 Italia

SILVER AWARD – KDDI

3.2.6 Mobile User Generated Content

Future Mobile Awards for Mobile UGC Services

GOLD AWARD – GoFresh

SILVER AWARD – Cyworld Mobile

3.2.7 Mobile Infotainment

Table 3.2: Scope of Sport Leisure and Information Content and Services

3.3 Players in Mobile Entertainment Services

3.3.1 Selected Operators

i. ‘3’ UK

ii China Unicom

iii. KDDI

iv. SK Telecom

v. Sprint Nextel

vi. Vodafone

3. 3.2 Some Other Mobile Entertainment Value Chain Players

i. Bango

Figure 3.1: Co-existence of On and Off-Portal Models

ii. Entriq

Figure 3.2: Entriq MediaSphere Solution Overview

iii. Jamba/Jamster

iv. Mobile Entertainment Forum

v. Nokia

vi. Sony Ericsson

a. Sony Ericsson Walkman range

Figure 3.3: Sony Ericsson W890 Walkman

4. Mobile Entertainment Market Forecasts

4.1 Forecast Definitions &  Methodology

4.1.1 Forecast Definitions

4.1.2 Forecast Methodology

Figure: 4.1 Forecast Methodology.

4.2 The Global Market for Mobile Entertainment

4.2.1 Market Drivers and Constraints

i. Market Drivers

a. Anywhere, Anytime Accessibility

b. Fun and Relaxation

c. Increasing Mobile and 3G Penetration

d. Product Innovation

e. Supply Side Competition

ii. Market Constraints

a. The User Interface

- Difficulty in Discovering Services and Content

- Difficulty in Accessing Services and Content

- Difficulty in Navigating Services and Content

- Difficulty in Utilising Multiple Applications Simultaneously

b. Handset Form, Capacity and Battery Life

c. Network Speed and Coverage

d. Cost of Data Services

Table 4.1 UK Operator Data Prices ($), June 2007

e. Industry Structure

4.2.2 Global Market Product Breakdown

Figure 4.2: Total Revenues ($m) from Mobile Entertainment. Product Forecast 2007-2012.

Table 4.2: Total Revenues ($m) from Mobile Entertainment. Product Forecast 2007-2012.

Figure 4.3: Total Revenues (%) from Mobile Entertainment. Product Split 2007-2012

4.2.3 Global Market Regional Breakdown

Figure 4.4 Total Revenues ($m) from Mobile Entertainment (Gambling, Adult, Games, Music, TV and Infotainment). Regional Forecast 2007-2012.

Table 4.3: Total Revenues ($m) from Mobile Entertainment (Gambling, Adult, Games, Music, TV and Infotainment). Regional Forecast 2007-2012.

Figure 4.5: Total Revenues (%) from Mobile Entertainment. Regional Split 2007-2012

4.3 Mobile Entertainment Product Sector Forecasts

4.3.1 Mobile Gambling

Figure 4.6: Mobile Gambling Total Wager ($m). Regional Forecast 2007 - 2012.

Table 4.4: Mobile Gambling Revenues ($m). Regional Forecast 2007-2012.

Figure 4.7: Total Gross Win ($m) from Mobile Gambling Services. Regional Forecasts, 2007-2012

Table 4.5: Total Gross Win ($m) from Mobile Gambling Services. Regional Forecasts, 2007-2012

4.3.2 Mobile Adult Content

Figure 4.8: Total Revenues ($m) from Adult Mobile Services. Regional Forecast 2007-2012

Table 4.6: Total Revenues from Adult Mobile Services ($m). Regional Forecast 2007-2012

4.3.3 Mobile Games

Figure 4.9: Total End-User Generated Revenues ($m) from Mobile Games. Regional Forecast 2007-2012.

Table 4.7: Total End-User Generated Revenues ($m) from Mobile Games. Regional Forecast 2007-2012.

4.3.4 Mobile Music

Figure 4.10: Total End-user Generated Revenues ($m) from Mobile Music. Regional Forecast 2007-2012.

Table 4.8: Total End-user Generated Revenues ($m) from Mobile Music. Regional Forecast 2007-2012.

4.3.5 Mobile TV

Figure 4.11: Mobile TV Revenues ($m). Regional Forecast 2007 - 2012.

Table 4.9: Mobile TV Revenues ($m). Regional Forecast 2007-2012.

4.3.6 Mobile User Generated Content

Figure 4.12: Total End-User Revenues ($m) for UGC. Regional Forecast 2007-2012

Table 4.10: Total End-User Revenues ($m) for UGC. Regional Forecast 2007-2012

4.3.7 Mobile Infotainment

Figure 4.13: Mobile Infotainment Revenues ($m). Regional Forecast 2007 - 2012.

Table 4.11: Mobile Infotainment Revenues ($m). Regional Forecast 2007-2012.

4.4 Mobile Entertainment Regional Forecasts

4.4.1 North America

Figure 4.14: North American Revenues ($m) from Mobile Entertainment Services. Product Forecast 2007-2012.

Table 4.12: North American Revenues ($m) from Mobile Entertainment Services. Product Forecast 2007-2012.

4.4.2 South America

Figure 4.15: South American Revenues ($m) from Mobile Entertainment. Product Forecast 2007-2012.

Table 4.13: South American Revenues ($m) from Mobile Entertainment. Product Forecast 2007-2012.

4.4.3 Western Europe

Figure 4.16: Western European Revenues ($m) from Mobile Entertainment. Product Forecast 2007-2012.

Table 4.14: Western European Revenues from Mobile Entertainment. Product Forecast ($m) 2007-2012.

4.4.4 Eastern Europe

Figure 4.17: Eastern European Revenues ($m) from Mobile Entertainment. Product Forecast 2007-2012.

Table 4.15: Eastern European Revenues ($m) from Mobile Entertainment. Product Forecast 2007-2012.

4.4.5 China & Far East

Figure 4.18: China & Far East Revenues ($m) from Mobile Entertainment. Product Forecast 2007-2012.

Table 4.16: China & Far East Revenues ($m) from Mobile Entertainment. Product Forecast 2007-2012.

4.4.6 India Sub Continent

Figure 4.19: India Sub Continent Revenues ($m) from Mobile Entertainment. Product Forecast 2007-2012.

Table 4.17: India Sub Continent Revenues ($m) from Mobile Entertainment. Product Forecast 2007-2012.

4.4.7 Rest of Asia Pacific

Figure 4.20: Rest of Asia Pacific Revenues ($m) from Mobile Entertainment. Product Forecast 2007-2012.

Table 4.18: Rest of Asia Pacific Revenues ($m) from Mobile Entertainment. Product Forecast 2007-2012.

4.4.8 Africa & Middle East

Figure 4.21: Africa & Middle East Revenues ($m) from Mobile Entertainment. Product Forecast 2007-2012.

Table 4.19: Africa & Middle East Revenues ($m) from Mobile Entertainment. Product Forecast 2007-2012.

5. Regulation and Controls

5.1 Introduction

5.2 Regulatory Environments

5.2.1 Pan European

i. Pan-European Legislation

a. Directive 95/46/EC: Processing Personal Data and the Protection of Privacy

b. The E-Commerce Sector Data Protection Directive (2002/58/EC)

c. The Distance Selling Directive (97/7/EC)

d. The E-money Directive

5.2.2 National Legislation

i. Australian Communications and Media Authority (ACMA)

5.2.3 PhonepayPlus

5.3 South Africa

5.3.1 ICASA

5.3.2 FPB (Film and Publications Board)

5.3.3 Wireless Application Service Providers’ Association (WASPA) of South Africa

5.3.4 Self Regulation

i. UK Operator Self Regulation Approach

ii. Independent Mobile Classification Body (IMCB)

5.3.5 Digital Rights Protection

i. Open Mobile Alliance (OMA)

a. OMA-DRM

ii. Case Study: The French Anti-piracy Law