Mobile entertainment industry confident in face of economic downturn
Bullish industry predicts 27% revenue growth in next year according to MEF Business Confidence Index (BCI)
16 February 2009, London – The Mobile Entertainment Forum (MEF), the global trade association of the mobile entertainment industry, today launches the first quarterly Business Confidence Index (BCI) for the $32bn global mobile entertainment industry. It reveals that the industry is confident it will continue to grow despite the economic downturn. The respondents, MEF members, predicted an average revenue growth of 27% in 2009.
The MEF BCI, compiled in collaboration with KPMG, is the first of its kind and was undertaken to gauge the confidence of the mobile entertainment industry and to highlight specific trends over time. Every quarter it surveys MEF members across the globe, representing the entire mobile entertainment value chain. The first Index found that 88% of respondents anticipated that their company’s headcount will grow or remain stable in the next quarter.
As well as being optimistic about the growth of the industry as a whole, the MEF BCI identified a number of areas within mobile entertainment which are set to grow throughout 2009. The top five areas of growth were cited as:
- Social Networking
When asked whether demand for mobile entertainment consumption would be impacted by the credit crunch, over half of respondents said they saw mobile entertainment as a 'feel good' affordable purchase and it would therefore be resilient to the effects of the downturn.
The MEF BCI also reveals the spread of mobile entertainment revenues across the globe, with China and Central & South America being seen as hotspots over the next twelve months and respondents predicting growth in excess of 50% in both regions.
Rimma Perelmuter, Executive Director at MEF, comments: ‘I believe that the BCI’s positive outlook reflects ROI that our industry expects to see in 2009 and beyond after almost a decade of investment in mobile media. With growth anticipated across key segments of the industry, MEF will be working with our members to help them capitalise on new opportunities and address existing bottlenecks presented over the next twelve months.”
Mark Harding, Director of Digital Content at KPMG, says: “The first MEF Business Confidence Index compiled by KPMG was designed to take advantage of the fact that MEF members represent the complete mobile entertainment value chain. We have therefore been able to get a unique insight into how the mobile entertainment industry feels about its future in face of the current economic crisis. We will be updating this survey on a quarterly basis and I very much look forward to seeing how the trends that have been uncovered in this first Index develop in future studies. In these turbulent times it has been very interesting to see how the industry is bearing up.”
Andrew Bud, global chair of the MEF, says “We believe that the quarterly BCI will make a great contribution to the industry, at a time when companies face great uncertainty in their forecasting and budgeting. It is an example of how MEF offers leadership in illuminating the status and trends of our industry. We appreciate the support of KPMG in running this large scale and highly confidential operation.”
MEF members were surveyed from across the mobile entertainment value chain, from operators to content owners, billing aggregators and service providers. MEF members were asked a total of fifteen questions relating to their confidence in the mobile entertainment value chain. Questions relating to investments plans, revenue, headcount and marketing decisions were asked alongside those about the confidence in different types of mobile content.
The MEF BCI will be conducted on a quarterly basis moving forward. Please download the Members Only report here.