True Entertainment Potential of SmartphonesIs the Smartphone capable of swallowing the market for both handheld consoles and personal music players' Our research show that with declining iPod sales and an explosion in downloads of Smartphone game apps; the answer is yes. This report details the opportunities arising from this unique situation and also traces the future revenue generating potential of the Smartphone, as a one stop entertainment device.

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Smartphone Report: Gaming, Digital Music Distribution and
Entertainment
Published on September 2011
Report Summary
True Entertainment Potential of Smartphones
Is the Smartphone capable of swallowing the market for both handheld consoles and personal music players' Our research show that
with declining iPod sales and an explosion in downloads of Smartphone game apps; the answer is yes. This report details the
opportunities arising from this unique situation and also traces the future revenue generating potential of the Smartphone, as a one
stop entertainment device.
Gaming to secure revenue streams
How can developers, operators and handset manufacturers' monetise the games app' As successful Smartphone games like Angry
Birds reveal the vast revenue streams and franchise possibilities of Smartphone games, this report underlines the transformative
effect that LTE and 4G will have on the Smartphones capabilities. With a host of features exclusive to these devices the opportunities
set to open up between 2011 and 2016 will see the Smartphone revolutionise the mobile entertainment industry.
The changing face of the music industry
How will music and the cloud impact on the Smartphone market' As the music industry witnesses the steady terminal decline of both
digital downloads and personal music players, 2011 marks a turning point in the relationship between Smartphones and digital music.
With cloud services transforming the way consumers listen to songs, mobile based cloud services are set to make Smartphones
indispensible, driving adoption rates and revenue streams.
What is Different about this Report'
We conducted an independent and unbiased non-vendor affiliated assessment of the Smartphone gaming music and entertainment
market. We surveyed and interviewed several key industry players to gain an in-depth view of the market. We believe such a research
will help you in assessing the market potential and in designing Smartphone gaming music and entertainment strategies.
Some of the key points researched and forecasted include:
' How will Smartphones in mass market evolve by 2016'
' Where is Smartphone Gaming headed'
' Can Smartphones replace handheld gaming consoles and mp3 players'
' Which mobile platform is the best choice for entertainment application developers in terms of UI and manageability'
' What are the Smartphone related challenges facing MNOs'
' What is the impact of Android's growth on other platforms adoption by mass market'
' What are the key entertainment applications necessary to drive adoption of Smartphones'
' Will LTE change the way we use Smartphones as entertainment devices'
' What new entertainment applications will be supported by LTE'
' How can operators monetise these opportunities'
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Who needs to read this report'
' Service Providers - Generating revenues from entertainment apps is a tricky business for service providers. These reports details
how best to monetise apps of all kinds and suggest business models that will reap the most significant benefits.
' Music and games industry members - with both the games industry and music industry in a time of flux, there may be fears due to
unpredictable revenue streams. The Smartphone represents a sure fire path to success for both industries. This report offers
solutions to those seeking to make headway in the Smartphone arena and ensure
' App Developers - Key to the success of any game app is the developer. This report details revenue share figures, the most
successful OEMs and Platforms for which games should be created and outlines how future technologies can be used to innovate
and exploit the unique abilities of a Smartphone.
Increase your understanding of this exciting market by ordering: Smartphone Report: Gaming, Digital Music Distribution and
Entertainment Opportunities 2011-2016
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Table of Content
Table of Contents
Executive Summary
E1 Mobile Gaming is Fuelling the Smartphone Adoption Rate
E2 Handheld Game Consoles Pose a New Challenge to Smartphone Gaming
E3 Mobile Music and the Shift Towards the Cloud
E4 Smartphones and the Future of Entertainment in the LTE Era
E5 Points Emerged From This Research
1. Introduction to Smartphone as an Entertainment Device
1. Introduction to Smartphone as an Entertainment Device
1.1 Defining Smartphones
1.2 History of Mobile Gaming
1.3 Smartphone and Convergence
1.4 Continued Growth of Smartphone Market
1.4.1 Smartphone Operating Systems
1.5 PC-Mobile Gap Paving Way for Smartphone as Entertainment Device
1.6 Popular Smartphone Features
1.7 The Future of Mobile Gaming
1.8 The Future of Mobile Music
1.9 Aim of This Report
1.10 Questions Answered by this Report
1.11 Structure of the Report
1.12 Methodology
2. Smartphone and Gaming Market Analysis
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2.1 Traditional Handheld Games Console Market
2.1.1 Nintendo and Sony - A Threat to Smartphone Gaming'
2.1.2 Handheld Nintendo console sales
2.1.3 Most Popular Handheld Consoles
2.2 The Threat to Smartphone Gaming from the Nintendo 3DS
2.2.1 3DS Price Slash
2.3 Will 3D be a Game Changer in the Smartphone Market'
2.3.1 How 3D technology works
2.3.2 Creating 3D content - A Driver for Uptake'
2.3.3 How to Make 3D Smartphones Successful
2.4 PlayStation Vita - Incorporating the Smartphone into the Console
2.4.1 PlayStation Vita and Location Based Services
2.4.2 PS Vita to Feature SMS Services'
2.4.3 Analysing Threat to Smartphone from Sony PlayStation Vita
2.4.3.1 Cost - a Factor in the Threat
2.5 Sony Ericsson Xperia Play - The PlayStation Smartphone
2.5.1 Xperia Closing Gap between Console and Smartphone
2.5.2 Sony Ericsson Poised to Increase Market Share'
2.6 Segmenting Mobile Gamers
2.6.1 Recommendations on Segmentation for Game Apps
2.7 Social Media Gaming
2.8 Pricing - Games Apps, Free or Paid'
2.8.1 Free vs. Paid Game Apps - Android
2.8.2 Android Game Apps
2.8.3 Top 10 Most Popular Android App Categories
2.8.4 Free vs Paid Game Apps - Apple App Store
2.8.5 Free vs. Paid - All App Stores
2.8.6 Paid Apps - Price Strategies
2.8.7 Free versus Paid Summary
2.9 Freemium vs. Premium Business Model
2.9.1 Freemium Model - Recommendations
2.10 Game Apps by Developer and Platform
2.10.1 App stores - Developer Revenue Share
2.10.2 Marketing Game Apps to the Right Device
2.10.3 App Development - Choosing a Platform
2.10.4 Platform and handset specifics
2.11 Game Genres Specific to Smartphones
2.11.1 Location based games
2.11.2 Augmented Reality games
2.11.3 Games Console Emulators
2.12 Importance of Gaming to Smartphone Adoption Rates
2.13 Angry Birds an App Success Story
2.13.1 Turning a Game App into a Franchise
2.13.2 Return on Investment Monetising Game Apps
2.14 Mobile Gaming - Advertising for Revenues
3. Smartphone and Digital Music Distribution Market
3.1 iPod Sales in Terminal Decline
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3.2 Digital Downloads Also in Decline
3.3 Digital Downloads vs. the Cloud
3.4 Smartphones Take Over Music Industry
3.5 The Worlds First App Album
3.6 Digital Music - Key Statistics (2011)
3.7 Free Music Apps for Smartphones
3.7.1 imeem for Android
3.7.2 TuneWiki for Android
3.7.3 Pandora for Android
3.7.4 OurStage for iPhone
3.7.5 Mobbler for Symbian S60
3.7.6 Nokia Internet Radio for Symbian S60
3.7.7 AccuRadio for WebOS
3.7.8 RadioTime for WebOS
3.7.9 iheartradio for BlackBerry
3.7.10 Slacker Radio for BlackBerry
3.7.11 Pandora for Windows Mobile
3.8 Key Cloud Music Services for Smartphones
3.8.1 Music by Google
3.8.2 Spotify for Mobile
3.9 Smartphones as MP3 Players
4. Smartphone as an Entertainment Device
4.1 News and Entertainment Apps
4.2 Social Media
4.3 Mobile TV
4.4 Cameras and Photography Apps
4.5 Video recording
4.6 LTE and the Impact on Smartphones as Entertainment Devices
5. Business Case
5.1 Business Case for Game and Music Apps
5.2 Applying Existing Business Models to Apps
5.3 The In-Game Advertising Case
5.4 Future Business Case
5.4 Future Business Case
5.6 Potential of Apps defining the Business Case
6. Forecasts
6.1 Total Smartphone Sales to End Users 2010-2016
6.2 Total Smartphone Sales to End Users by OS 2010-2016
6.3 Total Smartphone Sales to End Users for Android Phones 2010-2016
6.4 Total Smartphone Sales to End Users for iOS Phones 2010-2016
6.5 Total Smartphone Sales to End Users for Microsoft Smartphones 2010-2016
6.6 Total Smartphone Sales to End Users for Smartphones of Other OS 2010-2016
6.7 Total Smartphone Sales to End Users for RIM Smartphones 2010-2016
6.8 Total Smartphone Sales to End Users for Symbian Smartphones 2010-2016
6.9 Smartphone Market Share by OS 2010-2016
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6.10 Global Mobile App Revenues 2010-2016
6.11 Global App Market Share by Region
6.12 Smartphone Penetration 2011-2016
6.13 Mobile Entertainment Industry Market Value 2010-2016
6.14 Mobile Gaming Market Value 2010-2016
6.15 Music Purchased through Smartphones 2010-2016
6.16 In-Game Ad Revenues 2010-2016
7. Recommendations and Conclusion
7.1 Current business climate
7.2 Why games will sell
7.3 Targeting Emerging economies
7.4 Future Actions
7.5 App Stores Crucial
7.6 Recommendations for Advertisers
7.7 Recommendations for Content Providers
7.8 Recommendations for Manufacturers
7.9 Maintain the Cutting Edge
List of Figures
Figure 1: Nokia's Snake
Figure 2.6: Nintendo 3DS
Figure 2.8: PlayStation Vita
Figure 2.10: Sony Ericsson Xperia Play
Figure 2.40: Angry Birds
Figure 2.41: Angry Birds Success
Figure 2.42: Angry Birds Merchandise
Figure 2.43: ROI - Angry Birds
Figure 3.3: Biophilia App
Figure 3.4: imeem
Figure 3.5: TuneWIki
Figure 3.6: Pandora
Figure 3.7: OurStage
Figure 3.8: Mobbler
Figure 3.9: Nokia Internet Radio
Figure 3.10: AccuRadio
Figure 3.11: RadioTime
Figure 3.12: iheartradio
Figure 3.13: Slacker Radio
Figure 3.14: Pandora for Windows Mobile
Figure 3.15: Music by Google
Figure 3.16: Music by Google
Figure 3.17: Music by Google
List of Tables
Table 1.2: Declining PC Shipments
Table 1.4: MID Usage 2009-2010
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Table 1.8: Global Smartphone Market Share by OS 2010-2011
Table 2.3: Total Global Nintendo Handheld Console Sales
Table 2.5: Global Sales of Most Popular Handheld Consoles
Table 2.7: Key 3D Smartphones
Table 2.9: PlayStation Vita Specifications
Table 2.10: PS Vita Cost
Table 2.12: Sony Ericsson Xperia Play Specifications
Table 2.17: Available Android Apps
Table 2.18: % Share of Android Apps by Type
Table 2.20: Available Android Game Apps
Table 2.24: Top 10 Android App Categories Free and Paid
Table 2.28: Available Apps - Free and Paid Q2 2011
Table 2.30: Average Price for Paid Apps
Table 2.33: Freemium Apps - Summary of Challenges
Table 2.35: Popular Apps by Developer and Platform
Table 2.36: App Stores - Distribution Platforms for Mobile
Table 2.37: App Stores - Third Party Distribution Platforms for Mobile
Table 2.38: App Stores - Third Party Distribution Platforms for Mobile
Table 2.39: App Stores - Third Party Distribution Platforms for Mobile
Table 2.45: Angry Birds Production Information
Table 2.46: Angry Birds Seasons Production Information
Table 2.47: Angry Birds Rio Production Information
Table 3.2: Digital Music - Changing Business Model
Table 3.4: Digital Music - Key Statistics 2011
Table 3.19: Smartphones Running Spotify
Table 3.20: Smartphones Running Spotify
Table 3.21: Smartphones Running Spotify
Table 3.22: Smartphones Running Spotify
Table 4.2: LTE Roll Out Schedule
Table 4.3: LTE Roll Out Schedule
Table 4.4: LTE Roll Out Schedule
Table 6.2 Total Smartphone Sales to End Users (Millions) 2010-2016
Table 6.4: Total Smartphone Sales to End Users by OS 2010-2016
Table 6.6: Total Smartphone Sales to End Users for Android Phones (Millions) 2010-2016
Table 6.8: Total Smartphone Sales to End Users for iOS Smartphones 2010-2016
Table 6.10: Total Smartphone Sales to End Users for Microsoft Smartphones 2010-2016
Table 6.12: Total Smartphone Sales to End Users for Smartphones of Other OS 2010-2016
Table 6.14: Total Smartphone Sales to End Users for RIM Smartphones 2010-2016
Table 6.16: Total Smartphone Sales to End Users for Symbian Smartphones 2010-2016
Table 6.17: Smartphone Market Share by OS 2010-2016
Table 6.27: Global Mobile App Revenues 2010-2016
Table 6.29: Global App Market Share by Region 2011
Table 6.31: Global App Market Share by Region 2016
Table 6.33: Global Smartphone Penetration vs. Legacy Devices 2011-2016
Table 6.35: Global Smartphone Market Size Growth 2011-2016
Table 6.37: Mobile Entertainment Industry Market Value 2010-2016
Table 6.39: Mobile Gaming Market Value 2010-2016
Table 6.41: Music Purchased through Smartphones 2010-2016
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Table 6.43: In-Game Ad Revenues
Table 6.45: Mobile Entertainment Industry Market Value by Region 2011
Table 6.47: Mobile Entertainment Industry Market Value by Region 2016
Table 6.49: Mobile Gaming Market Value by Region 2011
Table 6.51: Mobile Gaming Market Value by Region 2016
List of Charts
Chart 1.1: Decline in Global PC Shipments
Chart 1.3: MID Usage 2009-2010
Chart 1.5: Global Smartphone Sales 2010-2011
Chart 1.6: Global Smartphone Market Share by OS 2010
Chart 1.7: Global Smartphone Market Share by OS 2011
Chart 1.9: Most Popular Smartphone Features 2011
Chart 1.10: % of All Apps Downloaded
Chart 2.1: Mobile Gaming Market Value 2010-2011
Chart 2.2: Total Global Nintendo Handheld Console Sales by Region
Chart 2.4: Global Sales of Most Popular Handheld Consoles
Chart 2.13: Mobile Gamers vs. Traditional Gamers by Age
Chart 2.14: Mobile Gamers vs. Traditional Gamers by Gender
Chart 2.15: Free vs. Paid All Apps
Chart 2.16: Android % of Free and Paid Apps
Chart 2.19: Android Apps by Type
Chart 2.21: % of total apps for Gaming - Android
Chart 2.22: % Share of Game Apps by Genre
Chart 2.23: Top 10 Android App Categories Free and Paid
Chart 2.25: Apple App Store Top 25 Games % Free and Paid
Chart 2.26: Apple App Store - Top 25 Grossing Games by Price
Chart 2.27: Available Apps - Free and Paid Q2 2011
Chart 2.29: Average Price for Paid Apps
Chart 2.31: Average App Price 2009-2011
Chart 2.32: Revenue Generated from Top 100 Apple App Store Games 2011
Chart 2.34: % of Most Popular Developers Creating Cross Platform Game Apps
Chart 2.40: Available iPad Apps by Category
Chart 2.48: In Game Ad Revenues
Chart 3.1: iPod Sales 2008-2011
Chart 3.2: Digital Music - Changing Business Model
Chart 3.18: Spotify Paying Subscribers March - July 2011
Chart 3.23: Smartphone application and activity popularity
Chart 4.1: News and Entertainment Average Monthly Spend per User by OS
Chart 6.1: Total Smartphone Sales to End Users (Millions) 2010-2016
Chart 6.3: Total Smartphone Sales to End Users by OS 2010-2016
Chart 6.5: Total Smartphone Sales to End Users for Android Phones (Millions) 2010-2016
Chart 6.7: Total Smartphone Sales to End Users for iOS Smartphones 2010-2016
Chart 6.9: Total Smartphone Sales to End Users for Microsoft Smartphones 2010-2016
Chart 6.11: Total Smartphone Sales to End Users for Smartphones of Other OS 2010-2016
Chart 6.13: Total Smartphone Sales to End Users for RIM Smartphones 2010-2016
Chart 6.15: Total Smartphone Sales to End Users for Symbian Smartphones 2010-2016
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Chart 6.18: Smartphone Market Share by OS 2010
Chart 6.19: Smartphone Market Share by OS 2011
Chart 6.20: Smartphone Market Share by OS 2012
Chart 6.21: Smartphone Market Share by OS 2013
Chart 6.22: Smartphone Market Share by OS 2014
Chart 6.23: Smartphone Market Share by OS 2015
Chart 6.24: Smartphone Market Share by OS 2016
Chart 6.25: Smartphone Market Share by OS 2010-2016
Chart 6.26: Global Mobile App Revenues 2010-2016
Chart 6.28: Global App Market Share by Region 2011
Chart 6.30: Global App Market Share by Region 2016
Chart 6.32: Global Smartphone Penetration vs. Legacy Devices 2011-2016
Chart 6.34: Global Smartphone Market Size Growth 2011-2016
Chart 6.36: Mobile Entertainment Industry Market Value 2010-2016
Chart 6.38: Mobile Gaming Market Value 2010-2016
Chart 6.40: Music Purchased through Smartphones 2010-2016
Chart 6.42: In-Game Ad Revenues
Chart 6.44: Mobile Entertainment Industry Market Value by Region 2011
Chart 6.46: Mobile Entertainment Industry Market Value by Region 2016
Chart 6.48: Mobile Gaming Market Value by Region 2011
Chart 6.50: Mobile Gaming Market Value by Region 2016
Companies Listed
3 (Denmark)
AccuRadio
Aircell
Al Madar
Amazon
AndSpot
Apalon
Appitalsim Mobile Streams
Apple
Archos
Asiaspace
AT&T Mobility
Backflip Studios
BayRICS
Bell (Canada)
Bite
Cell C
Cellcom
Cellular South
CentreNet
CenturyTel
Chillingo
China Mobile
China Telecom
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Chunghwa Telecom
Claro
CLEAR Mobitel
Commnet Wireless
Cox Communications
CSL Limited
Deutsche TeleKom
DiGi
Discovery Communications
DNA
E Plus
Electronic Arts
Elisa
Emobile
EMT
Entel PCS
Etisalat Mobility
Fasmicro
FastApp
Fonpit AG
Gameloft
General Software
Glu
Google
Halfbrick Studios
Handmark
Hitachi
HTC
Huawei
Hutchison 3
iheartradio
imeem
INQ
Intertek
Kalador Entertainment
Kcell
KDDI
KPN
KT
Lap wireless
LG Telecom
LightSquared
LMT
M1
MetroPCS
Microsoft
MiKandi
Mobango
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Mobbler
MobiHand
Mobikom (Austria)
Mobyland
Motorola
Movistar
MTS Allstream
Ndoo
Nintendo
Nokia
NTT DoCoMo
Nukona
O2 (Telefonica)
Optus
Orange
OurStage
Outfit 7
Palm
Pandora
PCCW
Pocket Gear
Public Service Wireless
Qualcomm
RadioTime
RIM
Rogers Wireless
Rostelecom
Rovio Mobile
Samsung
Sasktel
SFR
Sharp
Shaw Communications
SingTel
SK Telecom
Slacker Radio
SlideME
Smartone
Softbank Mobile
Sony
Sony Ericsson
Spotify
Sprint Nextel (US)
Starhub
STC
Svyazinvest
Swisscom
T Mobile
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TDC
TeliaSonera (Sweden)
Tele 2
Telecom Italia
Telecom NZ
TeleNor
Telenor Magyarorszag
Telenor (Sweden)
Telia (Denmark)
TeliaSonera
Telstra
Telus
Texas Energy Network
TMN
T-Mobile (UK)
T-mobile (USA)
TuneWIki
UCell
UME EPM
Verizon Wireless
VHA
Viva Cell-MTS
Vivo
Vodacom
Vodafone
Vodafone (NZ)
Wind
Yota
ZAIN
Ziggo4
ZTE
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