Digital Lifescapes

The mobile video experience is evolving rapidly. Virtual reality (VR) applications gained new momentum at the recent Mobile World Congress (MWC) event in Barcelona, Spain. Mark Zuckerberg spoke about the rising popularity of 360-degree video, and HTC demonstrated new apps for mobile gamers. Given the current growth trajectory in the market, mobile VR device shipments are forecast to reach more than 50 million by 2020 -- that's a CAGR of 84.5 percent, according to the latest study by ABI Research. The introduction of Google Cardboard served as a catalyst for low-cost VR software applications. Moreover, Google has announced that they reached a milestone of 5 million Cardboard shipments this January. Impressive results, since Cardboard was launched at the Google I/0 event in 2014. Emerging Ecosystem of Mobile VR Developers "The VR content ecosystem is opening up to include casual and traditional VR gaming, as well as education experiences," said Sam Rosen, vice presi...

Digital entertainment now encompasses the inclusive aspect of services found on many smartphones, media tablets and connected TV sets. According to the latest market study by Juniper Research , the mobile and online entertainment industry will reach revenues in excess of $300 billion annually by 2019 -- that's up from $195 billion this year. The research observed that growth in the market would be driven by increased adoption of online television and video entertainment services, with the industry accounting for more than 60 percent of the net increase in market value over the next 5 years. The new study also found that Over-the-Top (OTT) video service providers -- such as Netflix and Hulu -- offer an attractive combination of third-party and home-grown content, with a subscription-based model that is supplanting the legacy on-demand pay-per-view approach. The research also found that while video game revenue will capture the lion's share of the digital entertainment m...

Across the digital content arena, there has been a gradual transition from the pay-per-download model to a month-to-month or annual subscription. This transition is very apparent in the mobile space, where the majority of applications are now free at the point of download. The overall value of the global digital content market will reach $154 billion annually by 2019 -- that's an increase of nearly 60 percent on 2014, according to the latest worldwide market study by Juniper Research. Their new research findings observed that mobile and online games would account for the largest share of content sales -- 38 percent of cumulative revenues -- with game formats continuing to transition from physical to digital. According to Juniper's assessment, the success of platforms such as Valve's Steam -- which now has over 125 million active accounts worldwide -- is a key driver in this evolution. Meanwhile, revenues from game consoles and handheld devices are diminishing as pla...

Despite having been demonstrated to the masses via the medium of Cinema, as well as the fact that the Augmented Reality (AR) concept has been in development for a long time, the technology has yet to gain significant market traction. That said, AR software applications in the mobile games market are forecast to generate 420 million downloads annually by 2019 -- that's up from 30 million in 2014, according to the latest market study by Juniper Research. The emergence of Head Mounted Devices (HMDs) used in the home -- such as the Microsoft Hololens -- will bring a surge in interest for AR games over the next five years. For the time being however, Juniper believes that most AR downloads will likely occur via smartphones and media tablets. Market Development Opportunities Juniper also observed that there had been little traction in the consumer AR market over the past two years. They cited the apparent lack of compelling apps to captivate consumers, and hence a limited level...

One by one, more industries are being disrupted by the strategic use of mobile and cloud technology plays, as savvy new competitors seek ways to shift consumer preference to favor their online digital offering. The emerging Mobile Cloud phenomena will eventually disrupt the enterprise IT arena. Meanwhile, it will certainly continue to change the dynamics of the video entertainment sector. According to latest worldwide market study by The NPD Group, mobile gamers -- those who play on a smartphone, iPod touch, or tablet -- are playing more often, and for longer periods of time, than they were two years ago. The study uncovered that the average time spent playing in a typical day has increased 57 percent to over two hours per day in 2014 versus one hour and 20 minutes in 2012. The growth of the media tablet market has seen these devices become central to the mobile gaming story. New and improved devices enable the transformation of creative online gaming experiences. Not only ar...

The competition for market share in the mobile cloud arena will escalate during 2015. The cloud content and services markets -- enabled by the ubiquity of smartphones and media tablets -- are now the battleground between major content providers, device manufacturers and internet service providers. ABI Research recently conducted a worldwide market study of several key growth segments of cloud content and services -- including gaming, music, social networking and search. Overall, revenues in these important digital content ecosystems are expected to grow 122 percent from 2014 to 2020 and approach $320 billion, according to the ABI Research assessment. Search and Social are each led by dominant international companies, with Google capturing 60 percent of 2013 search revenue while Facebook has 55 percent of 2013 social networking revenue. ABI believes that while some regional differences exist, these positions should remain relatively defensible for the foreseeable future. The g...

The video games industry has changed dramatically over the past decade. Historically, computers and consoles were essentially the only devices used to play video games, requiring a significant initial investment in hardware and software. However, these legacy devices have been supplemented by an array of alternative consumer games channels in recent years. First with the evolution of the smartphone, then with the emergence of the media tablet. Juniper Research has revealed that by 2019 worldwide revenues from media tablet games usage will reach $13.3 billion -- that's a threefold rise on the 2014 revenue of $3.6 billion. The latest Juniper market study highlights that growth will be fueled by a number of key factors including improved storage capacity of devices, better graphical capabilities, increasing mobile broadband penetration and consumer preference for convenience and ubiquity. The Juniper market study also found that 2015 could be critical for smaller, independen...

Competition among the different video game platforms is increasingly fierce due to a couple of key reasons. First, new console hardware providers enter the market with their generally cheaper devices, while on the other hand gamers are offered a new means of playing via mobile phones. According to findings from the latest market study by Juniper Research , global revenues from PC and console video games will decline from $46.5 billion this year to $41 billion by 2019. The Juniper study reveals that despite the decreasing sales of console hardware and increasing significance of mobile platforms, PC and console video games will still account for over 50 percent of industry revenues over the next 5 years. Global revenues from software sales on both the PC and console platforms will remain relatively healthy, with PC video games software sales exceeding sales on the console platform. Juniper also found that the new generation of consoles will create a short-term uplift in video gam...

The digital video games industry has changed dramatically over the past decade. Historically, computers and game consoles were essentially the only devices to play games on. However, these devices have been supplemented by an array of alternative games channels in recent years. Many mobile devices -- such as smartphones and tablets -- can also be used to play various types of games, encouraging those who perhaps would not normally play games to now begin. By 2016, total revenues from mobile games will reach $28.9 billion – that's a growth of over 38 percent on the 2014 figure of $20.9 billion, according to the latest market study by Juniper Research . The study findings highlight that in an effort to maximize their apps' potential, developers are turning their focus on increasing user lifetime value. The new study found that with the domination of casual gamers playing free-to-play games, the game developer's approach has shifted from bulk acquisition of unique play...

Going mobile is a key strategy for many leading providers within the online gambling space. For countless others, mobile will assume a greater role in the short to medium term -- and that's not surprising, given how other apps have leveraged the mobile channel. Juniper Research has found that annual wagers via mobile phones and media tablets on casino-type gambling and poker games are expected to reach $62 billion globally by 2018 -- that's a sixfold increase on the $10 billion wagered last year. According to their latest market study, the primary driver will be legalization of selected online gambling services in the previously untapped U.S. market, which is expected to see a host of service launches over the next five years. Juniper believes that successful mobile casino launches in U.S. markets such as Nevada, New Jersey and Delaware, will prompt other states -- those currently adopting a ‘wait-and-see’ stance -- to begin legislating for online or mobile gambling. Fu...

The market for mobile entertainment could follow a number of paths, where rapid growth is a likely outcome. Today, the mobile ecosystem includes a combination of other very closely related components -- all interacting with each other, based on the operating system, software applications, and device type. Juniper Research has found that by 2017, annual revenues from mobile entertainment services will reach almost $75 billion. This upside growth, from an estimated $39 billion in 2013, is primarily driven by the emergence of more sophisticated strategies to increase overall revenues. Some new growth will be allied to a nascent ecosystem of app-centric mobile devices, such as smart watches and other wearable mobile devices. Juniper has observed that video games will continue to generate the largest share of revenue throughout the forecast period. Those revenues are now primarily derived through a freemium business model, where mobile content is upsold after an app is downloaded by t...

The video game sector is constantly evolving to meet the expectations for product innovation. In a recent market study, Microsoft just beat out Sony for the top position in a game console competitive assessment -- based on expectations for the impact of Sony’s PS4 and Microsoft’s Xbox One game consoles. ABI Research evaluated a number of companies across three device categories: game consoles, smart set-top boxes, and TVs/Blu-ray players. Several factors were used to score each company based on two main axes of innovation and implementation. The assessment provides deep insight into consumer electronics ecosystems and modern video experiences in the connected home. Sony fell to second place in the game console assessment in part because key PlayStation 4 (PS4) differentiators -- such as cloud gaming -- are still untested and won’t be fully available at launch. Besides, Microsoft has shown more features on the broader entertainment front -- as an example, hybrid premium or over-th...

The video game sector is about to get interesting, once again, with the introduction of better technology. New game consoles from Microsoft and Sony will both ship in selected markets during the 2013 holiday season. The XBOX One and Sony PS4 appear evenly matched with content remaining as the primary means of differentiation. A number of new entrants to the fixed console market, such as Ouya, are ratcheting up the competitive field with pricing and gaming experiences intended to capture the non-core gamer segment of the marketplace. ABI Research expects cumulative shipments of 8th generation consoles from the big three to pass 133 million during the first 5 years on market -- that's compared to nearly 140 million 7th generation consoles over the same length of time. "With many of the casual gaming segment embracing mobile devices for gaming, without a shift in strategy and pricing the Wii U will likely fail to match the success of the Wii which will impact future console...

Between them, Google Play and Apple’s App Store accounted for nearly 40 billion downloads in 2012. To put this accomplishment into perspective, consider that in 2009 the entire mobile app market accounted for less than 5 billion downloads. According to the findings from their latest market study, Juniper Research has forecast that in 2017 over 160 billion software apps will be downloaded globally onto consumer handsets and tablets. This sharp increase in volume -- from 80 billion in 2013 -- is a result of many consumers in developing markets upgrading from feature phones to smartphones, and a growing number of apps downloaded at no upfront cost. Games Top the List of Mobile Apps The Juniper study also found that the majority of annual application downloads will be in the games category, with at least 40 percent of downloads arising from this area. Furthermore, app stores will seek to improve stickiness by developing social features that enable game-play between application us...

The mobile gaming market continues to be a high-growth opportunity. International Data Corporation (IDC) released the findings from its latest market study, a comprehensive assessment of the current state and future direction of smartphone, tablet, and gaming-optimized handheld (GOH) hardware and software. Their forecast details the outlook for Apple, Google Android, Microsoft, Nintendo, Sony, and a wide range of game software developers and publishers from a mobile device and portable gaming perspective through 2017. The GOH market category -- typified by the Nintendo's 3DS and Sony's PlayStation Vita -- has recently been overshadowed by gaming-capable smartphones and media tablets and this trend is likely to continue. IDC research shows, for example, that the number of paying smartphone and tablet gamers will surpass the number of paying GOH gamers worldwide in 2013 and rise at a rapid rate through 2017. The number of GOH bundles shipped, meanwhile, should fall at an ...

By 2017 there will be 64.1 billion games downloaded onto smartphones and tablet devices -- that's over 3 times the rate in 2012, which stood at 21 billion -- according to the latest market study by Juniper Research. This high rate of growth for games is being driven by the increasing number of free-to-play releases, more sophisticated devices, and the global adoption of smartphones. Juniper's study investigated why this growth in the number of games downloaded would be so staggering. It found that an increase in the number of sophisticated games -- which allow for truly multi-platform gameplay through the use of cloud technology -- meant that mobile would become the primary screen for gamers. Greater memory on devices would also mean consumers were able to download more games onto their phones and tablets. Another key point highlighted by the report is that tablet users are downloading over twice the amount of games onto their devices than smartphone users. ...

Last year was very troublesome for the video gaming console vendors. After shipping over 3 million Wii U units during the 2012 holiday season, Nintendo’s next generation console is now facing a challenging market. 2012 saw just under 30 million game consoles shipped from Microsoft, Nintendo, and Sony (excluding PS2) -- that's roughly 10 million fewer than the previous year. Despite these results ABI Research looks at 2013 and beyond with cautious optimism, but the company expects Microsoft and Sony to determine the future prospects for the game console, not Nintendo. "The Nintendo Wii U’s troubles are not indicative of the expected market reception for the remaining 8th generation of consoles," said Michael Inouye, Senior analyst at ABI Research . In fact, the Wii U will likely prove a closer fit with the current generation than the next. The software released to date also bears out this assessment with many cross-platform games that were previously available fr...

How many people are playing social, mobile and online games? How much revenue are social and mobile games producing, and how is this income derived? And, what online and mobile venues are game developers using, and how is the online venue mix evolving? These are some of the key questions that eMarketer pondered during their latest gaming market study. American audiences for mobile games are growing rapidly, while active players for more mature categories -- such as social and online casual gaming -- are expected to grow more modestly in the next few years, according to eMarketer . As a result, advertising in mobile gaming will expand faster than in other areas. Social gaming revenues will also grow -- thanks to momentum in virtual goods monetization and advertising, but growth in social will be less spectacular than in mobile. Meanwhile, eMarketer believes that sales of traditional packaged video games and gaming consoles will show signs of contraction. A survey by Frank N. ...

comScore reported the key trends within the U.S. mobile phone industry during the three month average period ending October 2012. Their latest market study surveyed more than 30,000 U.S. mobile subscribers and found Samsung to be the top handset manufacturer overall with 26.3 percent market share. Once again, Google Android continues to lead among smartphone OS platforms, accounting for 53.6 percent of smartphone subscribers, while Apple was able to secure just 34.3 percent. The Android ecosystem has gained significant traction within the media tablet market as well, which likely also helps to drive further adoption -- attracting a huge pool of independent software app developers. For the three-month average period ending in October, device manufacturer Samsung ranked as the top OEM with 26.3 percent of U.S. mobile subscribers (up 0.7 percentage points). Apple ranked second for the first time on record with 17.8 percent market share (up 1.5 percentage points), followed by LG w...

According to the latest market study by Juniper Research , as marketers and retailers are increasingly keen to deploy Augmented Reality (AR) capabilities within their mobile apps and marketing materials, AR applications will generate close to $300 million in revenues globally by 2013. Juniper assessed how the mobile augmented reality industry has evolved over the past 18 months, as the key players look to specialize and strengthen their business models. Their market study highlights that while the traditional pay-per-download payment model would continue to account for the largest share of revenues in the near term, the scale of retailer engagement with AR suggested that advertiser spend had up-scaled dramatically in 2012 -- and was poised for further growth next year. Moreover, Juniper also found that many retailers now perceived AR as a key means of increasing engagement with their customers, both as a means of providing additional product information or in the form of branded ...