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Music and Video/TV to Lead Australia's Mobile Content Market Growth, Predicts IDC

  • 08 August, 2005 13:31

<p>North Sydney, August 8th, 2005 - With declining voice prices and shrinking profit margin, Australia's mobile carriers are pressed to grow non-voice revenue through higher-value content services. The planned 3G rollouts in the second half of this year by the nation's leading mobile operators are expected to deliver a wealth of multimedia rich and highly consumable contents to the mobile handset.</p>
<p>According to IDC's latest research into the local mobile content market, spending on non-voice services this year will total A$1.53 billion, and will grow 10 times the rate of the voice market over the next five years. That study, titled "A Little Less Conversation: Australian Cellular Non-voice 2005-2009 Forecast and Analysis," also finds that the two fastest-growing content categories are mobile music and video/TV services. Multimedia Messaging Services (MMS) (including peer-to-peer, premium, and subscription services) rounds out the top three growth drivers of the Australian mobile content market.</p>
<p>"With the cellular market now exceeding 'natural saturation, Australian carriers must become innovative and competitive beyond messaging," noted Warren Chaisatien, Mobile &amp; Wireless Research Manager for IDC Australia. He added the upcoming 3G services expected to hit Australia before the holiday season will promote a dramatic change in consumer mobile usage behaviour.</p>
<p>Other findings from the IDC study include:</p>
<p>* Of the 17.87 million mobile phone users at the end of 2004, 60% used SMS services, 9% used MMS services, 10% downloaded ring tones or graphics, and 3% were mobile data users.</p>
<p>* With 3G networks enabling the delivery of multimedia-rich mobile content, 3G content revenue will double every year between 2005 and 2009 while content revenue from 2.5G networks will gradually decline.</p>
<p>* The Australian mobile content value chain comprises mobile carriers as "facilitators," "aggregators" (e.g., Jamster, iTouch, and BlueSkyFrog), and "content developers" (e.g., ABC TV, Sony Music, and Atari), who – based on revenue-sharing partnerships – produce and sell mobile contents to users.</p>
<p>* In the consumer segment, mobile content providers should foster a healthy content ecosystem with adequate safeguards, pay attention to consumers' demands, and position content brands and portfolios accordingly. In the business market, on the other hand, they should be mindful that there are great opportunities beyond mobile data.</p>
<p>This IDC study presents 2005-2009 forecast of the Australian cellular non-voice market with projections on users and service revenues by content category. In addition to the forecast, it delves into the dynamics of the mobile content value chain, end-user data based on recent surveys, as well as commercial, regulatory, and technological developments. Essential guidance to help industry players make the most out of growth opportunities is provided.</p>
<p>For press enquiries please contact:</p>
<p>Warren Chaisatien
Research Manager, Wireless &amp; Mobility
Phone: 61 2 9925 2256
Jerson Yau
Associate Analyst
Phone: 61 2 9925 2205</p>
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