Infotainment and Game Apps to Push Mobile Entertainment Revenues to $65 Billion Annually by 2016

According to Juniper Research, strong growth for games and infotainment apps, in part fostered by a growing consumer tablet market, will push mobile entertainment revenues to more than $65 billion annually by 2016, up from $36 billion last year. 

That’s an average annual increased of 16% over five years. 

The report, titled “Mobile Entertainment Strategies: Business Models and Forecasts 2012-2016,” suggests that while the transition to an app-store centric ecosystem had dramatically increased consumer adoption of casual games, it had also resulted in the development of a far greater variety of content for mobile devices. Hence, revenues across a spectrum of infotainment services—most notably leisure and lifestyle applications—have already experienced dramatic growth.

However, the report observed that while overall entertainment revenues would continue to increase steadily, some sectors would perform less well. It highlighted the music sector as a case in point, where growth in streaming subscriptions and full-track downloads have been more than offset by the continuing decline in ringtones. Furthermore, with the global ringback tone market expected to peak this year, by 2016 the music sector as a whole is expected to be worth just 80% of its peak 2008 dollar value.

The author of the report Dr Windsor Holden, observed the increasing contribution made by consumer activity on tablet devices. “For applications such as streamed TV, multiplayer gaming or casino gambling, tablets offer a richer, more immersive experience than smartphones,” he said. “This is already translating into markedly higher usage—and consumer spend—on selected apps within these areas.”