Recession hampers mobile entertainment

A report from Juniper Research warns that, while its best case forecasts estimate that the mobile entertainment market will reach nearly $36 billion in 2010, revenue growth will be markedly lower if the global recession fails to bottom-out over the next twelve months.

Using a scenario-based approach to assess the impact of the recession on the mobile entertainment industry, the report found that average annual growth over the next two years declines from nearly 19 per cent under the best case scenario to less than 7 per cent in the worst case, with mobile TV, user-generated content and music amongst those sectors which are particularly exposed.

According to report author Dr Windsor Holden, "Some entertainment services appear to be highly susceptible to the downturn. Furthermore, given that operators will perceive that consumers will be increasingly reluctant – or unable – to purchase content, they may in turn be less likely to roll out expensive, higher risk services: a dedicated mobile broadcast TV network is a prime example".

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