Aspiro Sells Mobile Entertainment Division
Swedish mobile media company Aspiro sold its Mobile Entertainment division as it shifts focus to its music and TV streaming and B2B services business. Lobus Mobil has acquired the division in a deal worth SEK 42m (4.4m euros).
Aspiro's decision to sell its Mobile Entertainment business came as a response to a downward trend in the traditional mobile entertainment market (ringtones, wallpapers, games etc) across Europe. Aspiro's repositioning has already seen some success; its 2009 revenues saw a 74 per cent rise in its music and TV business. Clients for these services include T-Mobile, Telefónica, and Telenor.
Analysis
As the ringtone market in Western Europe drops (Screen Digest predicts a 25 per cent decline in 2010) and with most growth in other mobile content coming from application stores, shedding the Mobile Entertainment division is a logical move for Aspiro.
It is not the only mobile media company looking to exit the mobile ringtone and personalisation market. News Corp-owned Fox Mobile is reported to be considering off-loading its Jamba mobile content business in the latest restructuring of its mobile division.
Established in 1998 and still an independent company, Aspiro, having divested its weaker business unit, is a potential acquisition target for bigger media players seeking to gain a foothold in the European mobile content market.
Aspiro's decision to sell its Mobile Entertainment business came as a response to a downward trend in the traditional mobile entertainment market (ringtones, wallpapers, games etc) across Europe. Aspiro's repositioning has already seen some success; its 2009 revenues saw a 74 per cent rise in its music and TV business. Clients for these services include T-Mobile, Telefónica, and Telenor.
Analysis
As the ringtone market in Western Europe drops (Screen Digest predicts a 25 per cent decline in 2010) and with most growth in other mobile content coming from application stores, shedding the Mobile Entertainment division is a logical move for Aspiro.
It is not the only mobile media company looking to exit the mobile ringtone and personalisation market. News Corp-owned Fox Mobile is reported to be considering off-loading its Jamba mobile content business in the latest restructuring of its mobile division.
Established in 1998 and still an independent company, Aspiro, having divested its weaker business unit, is a potential acquisition target for bigger media players seeking to gain a foothold in the European mobile content market.
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