Frost: Australian Mobile Content Market Set to Grow to $1.3B in 2010
December 29, 2006 // Published as a news service by IHS
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The mobile content market in Australia is dominated by telecommunications carriers, with most consumers identifying with telephone company (telco) brands over the content provider brands.
According to Frost & Sullivan, this continues to enable carriers to drive favorable revenue-sharing deals with content providers and to increase on-portal revenues at the expense of off-portal.
As a result, analysts said the share of on-portal revenues has grown year-on-year. The strong competition among carriers to increase the market shares of their portal revenues is leading many to form exclusive premium content partnerships, including sporting rights.
This is one area where major content providers have stronger negotiating clout, but it's also attracting regulatory attention.
New analysis from Frost & Sullivan found that revenues in this market totaled $576M in 2006, with estimates to grow to $1.3B by the end of 2010.
"Personalization remains the largest content segment, while information is the fastest growing content segment in 2006, growing by 132% year-on-year," said Darryl Nelson, research director at Frost & Sullivan Australia.
"We estimate that information content will represent 25% of the total market by end of 2007."
According to Frost & Sullivan, trends in the market include:
Realtones are seeing explosive growth in the personalization market.
Games still heavily dominate the entertainment content segment.
Guides, sports results and listings are the largest revenue contributors in the information segment and e-mail accounts for 43% of revenues in the productivity segment.
The increasing technical capabilities of handsets will play a large part in driving the mobile content market. Analysts said third generation (3G) mobile subscribers now represent approximately 13% of all mobile subscribers. Frost & Sullivan forecasts a strong transition by mobile users to 3G services, with a compound annual growth rate (CAGR) of 38% for 3G subscribers over the forecast period.
Analysts said limitations still exist in the availability of sophisticated applications. "Location based services (LBS) have long been promised as the most important content development for mobiles," said Nelson. "However, this remains only a promise. Some LBS services exist, such as Sensis' Whereis, but these are mainly directory, SMS (short message service) or cell-id based at present, as market penetration of global positioning system (GPS)-enabled handsets is still negligible."
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Other next generation mobile content services include mobile TV. With carriers now rolling out high speed downlink packet access (HSDPA) on their networks, analysts said TV applications may become viable in the next 12-24 months, handset compatibility withstanding.
Source: Frost & Sullivan.