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. The market data for the years 20082012 are actual figures 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 market figures and other content in this report are based 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 reports findings are based on in-depth interviews with players 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 4Introduction 6Summary 10 Key trends and observations 14 Total market 17 View on the global market 20 Application stores 26 Installed apps 27 Application stores & device bases 28 SMS Services 30 Premium rate calls 32 Device base 36 Smartphone penetration 38 Mobile marketing 3
  • Introduction Mobile services have been topical since the late 1990s. During the first ten years mobile commerce was dominated 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 have ignored or taken only minimal steps in the first phase 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 increasingly difficult to define. The distinction between mobile 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 becoming hard to define as either of these, making it difficult to draw a line between mobile and desktop. 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
  • Definitions 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 spent on SMS traffic, search and 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 phone has. One of the most significant 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 A feature phone is defined to cover 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 mobile platforms and the fight between mobile application 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. Total mobile content revenue in Finland 1596 20082016 (M), including mobile content export 1399 The mobile content services market 1233 revenue is booming in Finland, when looking at the combined revenue from 1025 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 69 177 172 256 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 34 172 172 143 124 107 89 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 such as Spotify or Netflix. Source: Idean, 2013 Premium SMS Premium rate calls 256 252 257 263 240 234 245 262 82 290 7
  • of the leading subscription services, such as Spotify and Netflix, are invoicing customers directly via credit card. This