Mobile Access, Content Revenues Poised for Growth

June 22, 2010

The five-year compound annual growth rate (CAGR) of revenues from mobile internet access subscriptions and content/advertising spending will approach 50% in some global markets, according to data from PriceWaterhouseCoopers.

Saudi Arabia Leads in Mobile Access, Content Revenues
The Saudi Arabia/pan-Arab market offers the highest CAGR for both mobile internet access subscriptions and content/advertising spending between now and 2014. Saudi Arabia’s CAGR for internet access is more than 40% and its CAGR for content/advertising approaches 50%.


Mobile Revenue CAGR in Other Countries Varies
The US is second in internet access CAGR, which is expected to reach 40% in the next five years. However, the US content/advertising CAGR is only about 15%, placing it last in the eight global markets covered.

The UK has the second-highest content/advertising CAGR, a little less than 30%, with China trailing closely. Five-year mobile CAGR estimates are generally low in Japan and Korea. Both countries have internet access growth rates of less than 5% and content/advertising growth rates not much higher than the US.

Wireless Subscription Not a Revenue Driver
Every global market shared one characteristic: low expected revenue CAGR from wireless subscription revenues. China led in this category with a five-year CAGR of approximately 7%, closely followed by Saudi Arabia. In the US the CAGR was below 5%, and it was non-existent in Italy. Rates in the UK and Germany were negligible.

Other Findings

  • 500 million people accessed the internet via mobile device globally in 2009, up from 100 million in 2005.
  • By 2014, 1.4 billion globally are expected to have mobile internet access.
  • In Japan, more than 60% of internet access spending in 2009 was generated via mobile device.

  • In South Korea, more than 20 million people watched TV via mobile device, a number expected to reach 30 million by 2014.

28% of US Mobile Web Users Go Online Daily
Twenty-eight percent of US mobile phone users access the mobile internet at least once a day, according to a recent consumer survey conducted by ABI Research. Overall mobile internet access rose between December 2008 and February 2010. The percentage of mobile phone users who have mobile internet access but don’t use it fell from about 30% to about 20%. In addition, the percentage who don’t have mobile internet access on their phone fell from about 28% to about 22%.

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