Smartphones and high-speed internet explain the passion for subscriptions to mobile services that give access to news or entertainment information. SMS remains the main transmission channel. The Latin American mobile-content se
rvices market will see enormous growth, according to a study by Frost & Sullivan. The firm predicts double-digit growth between now and 2014. In 2009, the market reached $2.5 billion and more than 60 million users. The passion for the sector is due to two principal factors: the adoption of high-speed mobile internet and the arrival of smartphones on the market, as well as other tools for content visualization, like tablets.
Information Services Lead by SMS
According to the study’s figures, SMS-based information services about subjects like soccer, horoscopes or the economy are the primary source of revenue for this sector, accounting for 65 percent of total revenue. Following these are music and game download services. Brazil and Mexico lead this sector; Brazil counts nearly 40 percent of the market’s total users, and Mexico, 30 percent. Venezuela, Argentina and Chili are falling behind these two.
Argentina, Chili and Venezuela Falling Behind.
Argentina, with the most notable market of the three, only accounts for 15 percent of total consumers. All three of these countries have reached the saturation point in their number of mobile users, with each exceeding 100 percent penetration rate. Even if television and video still represent a tiny part of revenues related to mobile content, Frost & Sullivan predicts that this multimedia content will see strong growth in the next five years, profiting especially from the launch of mobile app stores by the main South American mobile operators.