Monday, April 4, 2011

Indian mobile entertainment industry to grow at 26% CAGR

Indian mobile entertainment industry to grow at 26% CAGR : A new research report has revealed that the mobile entertainment industry in India will be worth $4.9bn in 2015, up from $1.2bn in 2009, growing at a CAGR (Compound Annual Growth Rate) of 26%.

As per the research report, increased commoditization of voice services, with rapidly declining voice tariffs, is resulting in diminishing voice ARPU for Indian mobile operators. To address this challenge, and to earn additional revenues from existing customers, Indian mobile operators are increasing their focus on data services, primarily entertainment services such as mobile music, gaming and video/TV.

Mobile music is the most popular entertainment service among Indian consumers, with ringback tones and ringtones the most popular services, followed by single track music downloads. Mobile operators are placing great emphasis on music streaming services, with players such as Vodafone, Reliance, and Idea offering music streaming at very affordable prices. Vodafone, for example, offers subscription-based music streaming services for US$1.09 per month. This provides subscribers with access to its music station, with 40,000 songs, and 30 music channels in nine languages.

Correspondingly, handset manufacturers are making moves to tap the opportunity presented by the Indian digital music market. Nokia has launched its Ovi music store for Nokia handset owners. This is focused on providing localized content to users, offering Indian users a choice of 3.5m tracks.

Gaming on mobile phones is also gaining traction, with leading Indian gaming companies, such as Zapak, ibibo, and Indiagames launching mobile gaming, providing users with access to multiple games, incorporating social networking functionality.

Handset makers are also tapping into this market, launching sophisticated handsets with advanced gaming functionality. Researchers expect greater adoption of multi-player mobile games, along with growth in 3D and “mythological” games.

With the launch of 3G services, the mobile TV and video landscape in India is also witnessing rapid changes. It is believed that India has good future potential for mobile video streaming services, especially for videos focused on cricket highlights and updates, in addition to film-based content. However, as many subscribers are not accustomed to paid, subscription-based services, the monetization of video content will be primarily through advertisements. It is also expected that a greater adoption of mobile TV, with users preferring to watch television on mobile while on the move.

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