The market for mobile multimedia content will generate annual revenues for operators in the range of $7-billion within five years, while digital music and video service providers will make $2.9-billion, according to Webnoize’s report ‘Wireless Entertainment What is it Worth?’

Webnoize analyst Matt Bailey, author of report, advises smaller firms developing technologies in this area to build their on-line offerings of music and video in order to be ready to jump into the wireless market when networks and devices are ready. He added that conglomerates will turn to these small players for technologies and expertise.

The study provides a comprehensive look at the economics that will fuel the mobile entertainment market. For example, the firm surveyed more than 5,000 east coast college students in February and found that 75 percent were willing to pay for mobile music services by way of a flat fee or an increase in minutes of usage. In addition, these early adopters said they would pay more for streaming video content.

The authors of the report stressed that mobile entertainment is essential to the long-term success of wireless operators. To help them and others to take advantage of the emerging market, the report provides insight into the following:

• Evidence on consumer willingness to pay for wireless access to music and video
• Roll-out timetables for high-speed wireless networks
• Data-transfer pricing models
• Strategy for building mobile multimedia brands