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IDC Finds Emerging Market for Graphical Content on Mobile Devices

November 30, 2004

Graphical content has emerged in 2004 as the fastest-growing mass market for wireless data, a new IDC study reveals. While smaller than ring tones and games in terms of revenue, the market for commercial graphical content – comprised of wallpaper, caller ID graphics, screensavers, and special use graphics – is poised to grow from just under $150 million this year to over $1.1 billion by 2008.

While adoption of ring tones moved to the mainstream in 2003, graphical content has only now begun to make similarly dramatic strides in the market. Color screen phones, richly animated graphics, improved user experiences from a network and accessibility perspective, and fresh new content are coming together this holiday season to rapidly accelerate customer adoption.

“Graphical content such as wallpaper is phenomenally popular, especially among youths and young adults,” said Lewis Ward, senior research analyst in IDC’s Wireless and Mobile Communications program. “Our survey data found that members of this demographic group are five times more likely to pay for and download graphics than are their adult counterparts. Furthermore, bundling graphical content with other similarly themed content should become prevalent over the next few years, as will tying such content to movie and album releases, all of which should propel revenue through the content ecosystem.”

Despite these emerging opportunities, growth in graphical content will be constrained by relatively low penetration levels of advanced handsets (those capable of supporting graphical innovations such as rich animation and full-motion video), a lack of digital rights management (DRM) standards, a lack of cross-carrier shortcodes that could be utilized to easily deliver “impulse buy” graphical content, and relatively low user awareness of the availability of such content.

The IDC study, U.S. Wireless Wallpaper and Graphical Content 2004-2008 Forecast (IDC #32242), represents an in-depth examination of trends in the domestic graphical content marketplace as of the end of 2004, including select carrier strategies, and forecasts this dynamic market through 2008 based on a variety of metrics.

To purchase this document, call IDC’s Sales hotline at 508-988-7988 or email sales@idc.com.

About IDC

IDC is the premier global market intelligence and advisory firm in the information technology and telecommunications industries. We analyze and predict technology trends so that our clients can make strategic, fact-based decisions on IT purchases and business strategy. Over 700 IDC analysts in 50 countries provide local expertise and insights on technology markets. Business executives and IT managers have relied for 40 years on our advice to make decisions that contribute to the success of their organizations.

IDC is a subsidiary of IDG, the world’s leading technology media, research, and events company. Additional information can be found at www.idc.com

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