Jupiter Analyst Clarifies Recent Mobile Content and Entertainment Projections
Jupiter Research recently issued this press release on mobile content and entertainment projections. Jupiter analyst Thomas Husson thought it was interesting to see how some of the press coverage took a quite negative angle from that of the actual release. Here are some key takeaways from his comments on his blog:
- JR does not expect mobile content and entertainment to be mainstream defined as a penetration rate>50%. Reaching a critical mass (between 15 and 25% depending on services) of users effectively paying for services is not what he would call bad news.
- Free content (music sideloaded from the PC, mobile video created by end-users) will co-exist with a premium model and with ad-funded services.
- Personalization services such as ringtones and logos will struggle to move beyond the core youth market.
- Most new content category growth occurs at the expense of growth of traditional ring tone formats: young consumers have limited budgets
- Messaging will continue to dominate European mobile services revenues but there will be a decline in SMS revenues.
- Mobile phones will remain a personal communication platform, even beyond voice.
- There is no doubt that the market will grow significantly in the coming years and that mobile phones will have a huge and yet unknown impact on our daily lives with new innovative services that have not even been conceived yet. But let’s keep both realistic and optimistic: build the foundations first and the house second.
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