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Chinese Mobile Entertainment Revenue to Reach $18 billion by 2013
2010 Is The Year The Chinese Mobile Entertainment Market Through 3G, Mobile App stores, and Smartphones Revolution
By Mi2N
(more articles from this author)
2010-03-08
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Market research and consulting company JBB Research, which specializes in the mobile and telecommunications industry, published its latest report, "The State of the Chinese Mobile Entertainment Market: Taking Advantage of the 3G, Mobile App stores, and Smartphones Revolution." The report provides the first industry-wide look at mobile entertainment strategies from the handset and carrier standpoints. With over 700 million mobile subscribers, China has become the largest wireless market in the world. But most importantly, it has now become of the largest mobile entertainment markets in the world.

JBB Research predicts a solid growth in mobile entertainment usage in China given the growing popularity of advanced 3G smartphones, and mobile app stores, and Chinese carriers' migration toward 3G and 4G networks, and more affordable data plans.

"As Chinese carriers continue to migrate toward 3G and 4G networks (e.g. TD-LTE, WiMAX), introduce new advanced 3G smartphones (e.g. Android-powered handsets), and more affordable data plans, this should fuel the adoption of mobile entertainment content/services in China", noted Julien Blin, Principal Analyst and CEO of JBB Research.

In 2010, we expect mobile app stores to gain good traction, which should have a ripple effect on the Chinese mobile entertainment market.

"As competition around mobile applications stores starts to head up in 2010, we expect Chinese carriers to heavily promote their own mobile application stores to increase customer retention and capture a larger share of this growing business. For mobile app store providers like Apple and others, focusing more on developing Chinese-language mobile apps will be critical in order to help them drive the popularity of their mobile app store", noted Blin.

While mobile entertainment services such as WAP/mobile web and ringback tones will continue to gain significant traction, we expect mobile advertising, mobile LBS, and mobile payment, and mobile TV/video services to become key growth drivers in the next 3 years.

Based on JBB Research estimates, by the end of 2013, the total number of Chinese mobile entertainment subscribers is expected to double. In the coming years, the Chinese mobile entertainment content/services market is expected to experience strong growth. By the end of 2013, the total Chinese mobile entertainment revenue will reach a total of roughly $18 billion, up from nearly $6.5 billion in 2008.

To realize this potential, the Chinese mobile entertainment content/services market must quickly overcome hurdles that include the small penetration of 3G services and smartphones, the large proportion of low-income customers, handset limitations for many feature phones, the high cost of mobile data pricing and advanced multimedia-capable handsets, the growing popularity of free WiFi and content. Other restraining factors include censorship, the high level of fragmentation in the Chinese wireless market, fraud/corruption, and the lack of Chinese-language mobile apps, among others.


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