The market for mobile content and entertainment services in Western Europe could grow to 32 billion Euros by 2012, according to a new report from Berg Insight. Although 15 percent of mobile subscribers regularly access mobile content and services today, usage is not expected to reach 50 percent until 2012, primarily due to the lack of broadcast-quality transmission.

The leading mobile content between now and 2012 will be games, sports, music and multi-media downloads, and content messaging, the report suggests.

Although many mobile network operators are launching mobile TV services, these will not be the main contributor to the surge in mobile content and entertainment revenue within the time-frame covered by the report, according to Berg. The report predicts that subscribers will be reluctant to sign up for monthly payments to access TV services until transmission reaches broadcast quality, which is not expected before 2012 in most markets.

Nevertheless, video has a role to play, the report suggests. TV brands will increasingly cross over onto mobile through selected streamed and downloaded clips, games tie-ins, interactive TV, and branded content services, as TV producers and broadcasters integrate mobile into their production schedules.

“Most TV rights owners stand to receive just insignificant amounts per download through their revenue share deals with the mobile network operators so only those properties with mass market appeal stand to earn any real money,” said the Julie Robson, author of the report. “But with some major media brands entering the market we might start seeing some more aggressive deals.”

“There are so many advanced feature phones in circulation now and people are starting to get accustomed to using these features,” noted Robson. “At the moment around 15 percent of mobile subscribers use their phones to access content and entertainment services on a regular basis (i.e. at least once a month), by 2012 we would realistically expect that figure to be 50 percent.”

 
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