Washington - U.S. mobile media and entertainment revenues are expected to more than double over the next five years, but the strongest growth will not occur until after 2010, as the technical and market environment for such services improves, according to a new report from market research firm Analysys.

U.S. mobile media and entertainment services -- excluding messaging, mobile browsing and data charges -- generated $3.1 billion in revenue in 2007, and are expected to grow at a compound annual growth rate of 16.3% to reach $6.6 billion in 2012.

In 2012, 12.3% of non-voice service revenue is expected to come from mobile media and entertainment services.

Mobile TV and video-on-demand services will experience the highest growth rate, representing 36% of total segment revenue in 2012, while revenue from personalization services will drop from 47% of segment revenue in 2007 to 17% in 2012.

"Operators, content providers and device manufacturers will have to work together to increase subscriber awareness of MME offerings and to ensure straightforward pricing, and simpler purchase and delivery processes," said Analysys' Alexandra Rehak.

"It is also critical that the user experience of MME services be compelling and complementary to the subscriber's experience of entertainment across other media."

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