POTOMAC, Md. -- Declining profit margins in traditional telco services has prompted telcos to look towards other domains. Smartphones’ popularity and consistent enhancements in high speed networks has led mobile operators to attempt scoring off new revenue streams by offering media and entertainment (M&E) services to their subscribers.

Revenue from digital media and entertainment (M&E) will surpass non-digital media and entertainment revenue by 2019, accounting for 51% of global media and entertainment revenue. Offerings such as music streaming and VoD are already in vogue with subscribers. Industry players have also moved into the digital content distribution market profitably by DTH channel. Other new invasions like IPTV and Mobile TV are also riding high in the market. New competition is rife in the media and entertainment industry. Companies that used to offer contents, now also develop it, and the other way round. Technology companies are taking on the role of content distributors, and more interestingly consumer brands are also becoming content producers. So, there are no defined roles now. And, the prime reason is that these days video can be produced, edited, and delivered straight away from the source venue. Further, it can also be amended while in motion in tandem with the ever-flexible viewer expectations for more pertinent, better quality content. This is really encouraging as the global digital media and entertainment revenue is projected to grow at a CAGR of 11% during 2014-2020, while the non-digital media and entertainment revenue will grow at a meager CAGR of 1.6% during the same period.

For thought provoking cases of numerous initiatives and investments with the related revenue earning opportunities for telecommunication sector in both the developed and emerging markets, please read TRL’s latest research - Vertical & Horizontal Worlds of Mobile.


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