Not too long ago, the mobile industry was dominated by discussions about chipsets and back-end carrier infrastructure. Now, the conversation has turned to streaming video and iPhone apps – and there’s a whole cast of new characters that have a seat at the table, from Hollywood studios to web giants like Yahoo and Google. Who will be the dominant players, and what content will succeed in this emerging medium? These are questions that executives across an array of media sectors are trying to answer. This report provides insights into the future of mobile, with a particular emphasis on M&A and VC funding activity, and a glimpse into how mobile content (games, music, video, and social networks) will become a thriving business, through either paid or ad-supported models.
Their database of 1,115 transactions shows $343 billion of investment and M&A activity in the mobile sector over the past 38 months. While there has been a slowdown in activity, deals are still getting done and for good reason. There is no question that mobile is the next disruptive technology.
Increasingly, prognosticators are referring to phones as having the potential to be a mobile PC; while likely directionally correct, we think it is a premature call.
The economic downturn could hamper the ability of the carriers to grow the average revenue per customer/unit (ARPU) through content and service packages, but it could push more consumers to become wireless-only customers.
While mobile advertising and marketing has yet to live up to expectations, the medium is becoming increasingly accessible and scalable and the creative is improving such that there are a growing number of campaign success stories. Not with standing a weak economy, we think this is a sector that can do well near term as marketers seem to be embracing its lower out-of-pocket cost combined with targeting capcustomers.
Video usage should increase dramatically as theand hardware could mute near term growth.
The Changing Mobile Industry and What It Means for Media Executives
By Lauren Rich Fine, CFA, and Galen Vaisman
The full report can be downloaded at