Mobile Content Companies Scale Back Expectations Of Revenue Growth

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Mobile entertainment companies have scaled back their content sales expectations – but are getting far more bullish that consumers will pay directly for content, according to the Mobile Entertainment Forum’s annual Business Confidence Index, a survey of its members that it produces with KPMG…

— Members still think the content market is growing, but at a slower pace than they originally predicted it would. They now think 2010 global mobile content sales will grow 24 percent, and not the earlier-forecast 33 percent. The MEF says the mobile content market will be worth around $36 billion in 2010.

— Confirming what the market has been demonstrating, MEF members think games and apps represent the best revenue opportunities: they reckon 21 percent of their revenues will come from this in 2010. Mark Harding, director of digital content at KPMG, points out to us that respondents believed that apps revenue would be incremental rather than replacing other mobile content revenue.

— Related to this, MEF members said they think direct consumer purchase revenues will account for 73 percent, compared to 46 precent forecast previously.

The figures are not wholly indicative of the entire industry – the MEF has around 130 members and 68 responded to this survey, says Harding.

Rimma Perelmuter, the executive director of the MEF: “General stability is projected across the global market which indicates a degree of market caution.” Developing markets are still expanding, while those in the Northern Hemisphere regions are in decline. Some of the growth rates: Central and South America are at seven percent (compared to two percent); Africa and Middle East are at 10 percent (compared to four percent); Asia-Pacific is at 12 percent (up from nine percent).

Separately, the MEF has had a shuffle in its EMEA board of directors. Gerrit Jan Konijnenberg, EVP Strategic Development, Comfone, has been reelected as chairman; Mark Kortekaas, FM Controller Audio & Mobile, BBC; and Colin Yeh, Head of Group Product Development, Qtel Gp, have been reelected as co-vice chairman.

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