VCs Say The Focus Is On Mobile And Online Content For Next Two Years: Report


Venture capitalists, executives and investment bankers said over the next two years they expect to increase their investments in entertainment content with a focus on mobile and online applications with more mergers and acquisitions expected this year. The survey polled 300 people and was conducted by KPMG, an audit, tax and advisory firm. The survey doesn’t mention this, but this seems like a logical conclusion that investments will increase with the creation of such specific funds, such as the $100 million iFund, and the $150 million Blackberry/mobile application fund.

Here’s a summary of some of the stats the survey found:

— On investment and M&A increases: 52 of the respondents said investments in digital content creation will increase over the next two years and 25 percent indicated that the increase will be more than 20 percent. On M&A, 59 percent said they expect the area to increase with 18 percent saying they expect it to jump by more than 20 percent.

— On the hot sub-sectors: 31 percent said mobile applications will be hot.

— On which mobile applications will make revenue in 2009: social networks (31 percent); gaming (20 percent), video (14 percent), music downloads (20 percent) and user-generated applications (10 percent).

— On mobile video: 90 percent of VC respondents said mass adoption of mobile video will take off in the next five years, and 60 percent expect it will happen within the next three years.

— Who will take the lead in leveraging social media?: 44 percent said the social media sites; 22 percent said content owners; 20 percent said brand advertisers and 14 percent said wireless operators.

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