Tablet Purchases To Drive Mobile Content Revenues To $65BN In 2016, Up From $40BN+ In 2013, Says Juniper

Posted: May 10, 2013 in Apps, Gadgets, Gaming, GT, Media, Mobile, Social, Tablet
Tags: , ,

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As tablet ownership and usage continues its upward
trajectory, little surprise that more people are
expected to be paying for more stuff on tablets in the
coming years. But analyst Juniper Research has put
out a new mobile content revenue forecast predicting
that purchases on tablets will be the primary engine for growth — ergo: beating out smartphones — in the
mobile content market over the next three years. The analyst expects annual revenue generated from
content delivered to mobile handsets and tablets to
rise by nearly $25 billion over the period — climbing
from more than $40 billion this year to $65 billion by
2016. Music and video now account for nearly half of
all mobile content revenues, according to Juniper. The analyst says growth in the mobile content market
will “primarily” be fuelled by an upsurge in tablet users
buying games, videos and ebooks on their slates. But
it also flags up “increased opportunity” for content
monetisation via direct carrier billing on smartphones
as another factor helping to drive the market. “While the availability of direct carrier billing is patchy, the
various benefits which the mechanism offers —
higher conversion rates, opportunities to monetise
unbanked customers — suggest that deployments
will rise significantly in the medium term,” notes report
author Dr Windsor Holden in a statement. Returning to tablets, the report found that ebooks are
currently the largest revenue stream on slates, thanks
to e-reader applications from the likes of Amazon,
Kobo and Nook, but goes on to add that tablets are
experiencing a sharp increase in both paid and free
video applications. The analyst also expects consumer gaming spend to migrate to tablets from
dedicated portable gaming devices such as the
Nintendo 3DS and the Sony PS Vita — something
Juniper has delved into before in a separate report. The mobile content report also notes that the
convergence of gaming and social networking has
been “one of the major drivers” behind the post-
download monetisation opportunity — i.e. via in-app
purchases.

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