Skip to main content

Momentum is Slowing for Mobile Content

Forbes reports that despite the recent buzz about entertainment on cell phones, the mobile-content market has hit a speed bump.

After an initial burst of growth, mobile content -- which can include everything from ring tones to video clips -- is struggling to break out of the early adopter segment and achieve mass consumption. It is too soon to forecast the demise of this promising new field, but it is evident that wireless entertainment is wavering during a crucial transition to third-generation mobile telephony, or 3G.

According to Seattle-based mobile market research firm M:Metrics, consumption of wireless content has flatlined. After eight quarters of rapid growth, sales in the two main categories, ring tones and mobile games, have stalled. Every month in the U.S., only 10 percent of mobile subscribers download a ring tone to their phones, and less than 4 percent download games. Text messaging is holding steady at about 33 percent.

On advanced 3G handsets, consumption is about three-times stronger than on the older, more widespread 2.5G phones. But 3G unit numbers remain tiny. Two years after the introduction of video on cell phones, 2 million Americans, just 1 percent of the market, pay $10 to $15 per month for the service. Unless the 3G audience expands rapidly, current levels of investment in the creation and delivery of rich content such as 3-D games and video may be unsustainable.

Popular posts from this blog

The Billions Bet on Tentative AI Demand

Gartner's latest worldwide IT spending forecast exposes a trend every CIO has already felt in budget negotiations. Total spending will climb 14.2 percent in 2026, reaching $6.37 trillion. It seems that the IT infrastructure market is simply having a strong year. However, the more useful insight is how unevenly that growth is distributed. The Headline Number vs. The Real Story Data center systems and infrastructure as a service (IaaS) are absorbing capital at a pace several multiples faster than devices, communications services, and traditional IT services. This is not incremental growth spread across a healthy portfolio. It is a wholesale reallocation of enterprise technology budgets toward AI infrastructure, made on the expectation that demand for AI workloads will justify the outlay before that demand has been fully proven. Where the Money is Going Data center systems are forecast to grow 62.5 percent in 2026, that's up from 51.6 percent growth in 2025, reaching $822 billion....