Mobile content market in Finland 2012-2016

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Mobile content market in Finland report, including mobile app, SMS, premium rate call, mobile marketing other mobile content market value. Additionally the report looks at the installed base of devices by OS.

Text of Mobile content market in Finland 2012-2016

  • MOBILE CONTENT MARKET IN FINLAND 20122016 NOVEMBER 2013
  • Preface This report looks at the mobile content services market in Finland with a broad scope. The market size and drivers for mobile content services, mobile marketing and mobile device base are studied in the report. Market size for mobile content services is presented mainly for the years 20102016; some statistics may also cover earlier years. based on data gathered for this and earlier reports. Years 20132016 are forecasts based on market analysis and up-to-date information available on the market. All the on analysis by Ideans consultants and represent their views and opinions. The report is commissioned by Teleforum ry and funded by Tekes. This report is part of a larger project in which Teleforum is looking for ways to help the Finnish mobile ecosystem to create the next mobile success stories. The purpose of the report is to provide an overall view of the mobile content market dynamics in Finland. The report aims to help players in the mobile content market to develop services based on up-to-date market data. The focus of the report is in mobile consumer services. The report is carried out as a combination of desktop and interview study between August and October 2013. The reers in the mobile content market and other market experts as well as Ideans database on mobile content services. A steering group was formed to bring industry expert input and feedback to the report. The members of the steering group included leading Finnish experts working in global and national companies. All this data has been complemented with publicly available sources. The author of the report is Kalle Snellman, Senior Strategist at Idean. Ideans designer Lauri Lankinen has done the editorial work and created the visual layout. The author would like to thank all the interviewees and steering group members for devoting their time and effort in contribution to this report. 2
  • Contents 4 6 10 14 17 20 26 27 28 30 32 36 38 Introduction Summary Key trends and observations Total market View on the global market Application stores Installed apps Application stores & device bases SMS Services Premium rate calls Device base Smartphone penetration Mobile marketing 3
  • Introduction Mobile services have been topical since the late 1990s. by a handful of players specialized in mobile content. Now the situation has changed, as an increasing amount of the total online consumption is moving into mobile devices. This trend affects practically all organizations from different industries. Many of the companies and authorities that of mobile services, have now implemented mobile services or have serious plans for implementations. In fact, all organizations have become more or less technology oriented and dependent. The current media coverage on mobile issues draws a picture of mobile application dominated mobile commerce. Mobile applications, however, represent only a small share of the total mobile originated content revenue. The majority of the revenue is still delivered by premium rate calls and SMS based services. On the other hand, only a part of the mobile services are expected to bring direct revenues. The author of this report has acknowledged that mobile is bile and desktop usage and services used to be rather clear as there used to be separate SMS based services and mobile sites for mobile devices. Today an increasing number of online services are designed for both mobile and desktop. Moreover, a growing number of services and interfaces are - Consequently the report looks at those aspects of mobility that are possible to measure. The focus of the report is on the mobile content service revenue in Finland. Additionally the mobile device base is covered in the report. These aspects will give an overall picture of the mobile market in Finland. The aim of the report is to give service providers relevant, up-to-date and consistent information regarding the mobile market so that they can make solid and wellreasoned business plans and decisions. 4
  • Mobile content market value Represents end-user spending on mobile services within the addressed distribution channels. The spending is divided into domestic and export markets. The domestic market is further divided into four main categories; SMS based content services, premium rate calls, application stores and other. All of these categories are then analysed separately. Also media spending on mobile marketing channels is included in the market value. Mobile advertising market value The market value of mobile advertising consists of expenditure on mobile media. In other words, the money banners in a mobile media space. Mobile site design and other similar costs related to mobile marketing are excluded from the market value. Smartphone A smartphone is a mobile phone built on a mobile computing platform with more advanced computing abilities and connectivity than a feature cant differences is that the advanced application programming interfaces (APIs) on smartphones for running third-party applications can allow those applications to have better integration with the phones OS and hardware than typical feature phones. Currently smartphones include devices with the following operating systems: iOS, Android, Windows Phone, Symbian, BlackBerry OS, Bada and Meego. Feature phone all other mobile phones than smartphones in this report. 5
  • Summary The mobile content services market revenue is booming in Finland, when looking at the combined revenue from domestic market and export. The total market for mobile content grew 31 % in 2012 to 404 million euros. In 2013 the market growth is anticipated to accelerate and the total revenue to exceed one billion euros, which is a 154 % upswing over 2012. The majority of the growth in 2013 is generated by mobile content export. During the past couple years and in the near future the growth has been and will be dependent on a couple of leading mobile companies in Finland. For example, the growth in 2013 was almost solely due to Supercells spectacular revenue growth. The mobile content export grew from couple of million is 2010 to 164 million euros in 2012. In 2013 the revenue is forecast to reach 790 million. Concurrently the domestic market sales reached 240 million euros in 2012 and is forecast to decrease couple of percent to 234 million euros. The revenue trends in the domestic market vary sharply by mobile content category. The overall market is shrinking due to declining sales of premium SMS and premium rate calls. At the same time the mobile application, marketing and other mobile services are growing sharply. Together these three categories will surpass the combined domestic SMS and premium rate call revenue in 2015. The total domestic market revenue starts to grow again in 2014 despite the decreasing SMS and premium rate call revenue. Current media attention seems to focus on the competing stores. All this leaves an impression that mobile application stores are huge revenue generators. This is not the case at least yet and in Finland. Mobile application store revenue represented approximately 4 % of the total domestic mobile content market revenue. SMS and premium rate calls bring vast majority of the domestic revenue today. Another interesting trend is that a growing share of the mobile application spending is going through alternative channels to application store billing. For example most 6
  • Figure 1. 1 596 Total mobile content revenue in Finland 20082016 (M), including mobile 1 399 content export The mobile content services market 1 233 revenue is booming in Finland, when looking at the combined revenue from 1 025 domestic market and export. The Majority of the growth in 2013 is generated by mobile content export, which has been exploding due to Supercells spectacular 154 % success. Source: Idean, 2013 404 308 31 % 252 262 1 % 4% 2008 2009 2010 2011 2012 2013 2008 2009 2010 2011 2012 Mobile marketing 9 11 13 14 Other mobile services 1 3 Application stores 2 69 69 177 256 256 20 % 13 % 14 % 2014 2015 2016 2013 2014 2015 2016 17 23 35 48 62 8 16 32 51 75 4 10 16 25 35 36 70 70 63 55 46 39 34 172 172 172 143 124 107 89 82 252 257 263 240 234 245 262 290 18 % Figure 2. Domestic mobile content market revenue by service category 20082016 (M) Mobile content demand is strongly shifting to new forms of services. Other mobile services category is showing the strongest growth in the coming years. It consists of estimated mobile spending on various services, including subscription services Source: Idean, 2013 Premium SMS Premium rate calls 7
  • of the leading subscription services, such as Spotify and This revenue is considered in the other mobile services category. The mobile device user base is changing rapidly in Finland. The majority of mobile phone users have smartphone and a tablet device was in every fourth household in Finland in the fall of 2013. This trend is projected to continue as smartphones and tablets dominate the sales charts. In 2013 there will be three smartphones sold per one feature phone and it seems likely that soon the smartphones will be the only option available in stores. Tablet devices exAt the same time there are several new device categories emerging, such as smartwatches, different smart wristbands, glasses and other wearable computing devices. 8