The Mobile Entertainment Forums (MEF) third Business Confidence Index (BCI), compiled by KPMG, is predicting an average revenue growth of 33% for 2010, a 6% increase on the corresponding figure for 2009.
A 6% increase in the predicted growth of the market since the beginning of the year shows that despite a general downturn and a degree of belt-tightening in some areas, any remaining uncertainty is offset by a sense of optimism within the industry looking forward, says MEF Global Chair, Andrew Bud. The economic downturn has proved challenging for us all but despite this, overall confidence in the growth of the market remains steady.
Mark Harding, Director of Digital Content at KPMG, notes that paid-for content is still a big revenue generator for the mobile media sector, with respondents predicting that 63% of their revenue over the next quarter will come from both subscription and one off purchases. Games, video, music, social networking and infotainment continue to lead the way.
The survey results also show that the well publicised growth of applications is developing into tangible revenue streams, says Harding. 14% of all revenue is now projected to come from applications, with an expectation that over half of this will be generated by consumers buying apps. This is a new and fast growing revenue stream for the industry. These results demonstrate what can be achieved through a positive consumer experience and that consumers are willing to pay for content they value.
The MEF Business Confidence Index (BCI) was launched in January 2009 to analyse revenue and business trends in the mobile entertainment industry. The responses to the BCI survey, which was completed by MEF member companies, are analysed by KPMG. MEF members were surveyed from across the mobile entertainment value chain, from operators to content owners, billing aggregators and service providers. MEF members were asked a total of 15 questions relating to their confidence in the mobile entertainment value chain. Questions relating to revenue, headcount and marketing decisions, were asked alongside those about the confidence in different types of mobile content.
The MEF BCI is conducted on a quarterly basis, with a report on the findings of the Business Confidence Index available to MEF members on the MEF website.