Mobile Digital Commerce $1.9 Billion in 2012, Says Multimedia Intelligence

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The market for mobile digital commerce services grew to $1.1 billion in 2007, according to recent research by MultiMedia Intelligence ( Digital commerce service providers processes the financial transactions that monetize premium content from music, video and gaming companies over the mobile operator’s network.

By 2012, the market for mobile digital commerce services will grow to $1.9 billion. Although digital commerce service providers percentage share of the premium content market will decline, growth in new premium content categories will grow the overall market. Video will drive the majority of new growth.
“Leading digital commerce services companies are turning the art of mobile content sales into a science,” according to Frank Dickson, Chief Research Officer with MultiMedia Intelligence. “However, there is a long way to go. Competitive differentiation relies on robust, transparent and instantaneous reporting; better transaction validation; and better automation.”

MultiMedia Intelligence’s new research also found:
“Revenue leakage” is still an industry-wide problem across all geographic locations, especially in the off-deck space. Companies such as Bango and OpenMarket, a division of Amdocs, have come up with innovative ways to attack the problem.

Digital commerce services companies are highly regionalized, with digital commerce companies heavily entrenched within the regional operators. Valista’s recent win with US Cellular may foretell a softening of geographic boundaries.
The research, “Mobile Content Platforms: Mobile 2.0 and Advertising Join the Party,” covers software platforms that deliver & monetize content to mobile handsets. The report includes:

  • Five-year worldwide forecasts of global market revenue for video, music, gaming and images, including advertising in premium content.
  • Revenue share by content type for mobile operators, content providers, digital commerce services and content-enablement companies.
  • Mobile music segmentation, including ringtone, ringtune, ringback, over-the-air full track download, and streaming music revenue by region.
  • Profiles of major mobile content enablement platform companies, trends and predictions.
    The report is available for sale immediately.

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