"The silver screen may soon take a back seat to screens that are dramatically smaller as mobile-entertainment revenue in the U.S. closes the gap on revenue at cinema box offices, according to the data firm SNL Kagan.
In 2014, mobile entertainment — which includes games, video, music and location-based services — pulled in $9.14 billion in revenue. According to SNL Kagan, entertainment via phones and tablets is quickly approaching the approximately $10 billion per year that Americans spend at the box office.
The report, by SNL Kagan’s John Fletcher, takes note of the sharp rise in revenue in mobile-entertainment revenue from just $2.71 billion in 2011.
The leader in the mobile-entertainment push has been gaming — it’s responsible for 57% of all revenue. Though games have always been a major draw on mobile devices, titles such as “Heads Up!” and “Minecraft-Pocket Edition” from Apple Inc.’s App Store helped the app category bring in more than $5 billion in 2014.
“The new era of touch-screen smartphones is a great fit for mobile games,” Fletcher wrote in the report. “The larger screens, touch capabilities, accelerometers and easy-to-navigate app stores made the pre-iPhone mobile-game business of WAP decks and pixelated grey screens feel very distant.”
Mobile video streaming, with a 20% contribution, also had a hand in boosting the revenue of mobile entertainment. Though revenue from subscription services such as Netflix do play a role, the majority of money from video comes from advertisements from mobile apps and sites like Google Inc’s YouTube
Music and location-based services like Foursquare round out the boost to mobile revenue — accounting for 19% and 4%, respectively. According to the report, ring tones, radio and streaming services generated about $1.76 billion in the U.S., and location-based services brought in somewhere around $352,000."
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