Juniper report projects revs up this year from $33.2 billion to nearly $38.4 billion.
The report says smaller content developers are reaping the benefits of the transition to an app store delivery model, citing Rovio (with Angry Birds) and Lima Sky (Doodle Jump) who have each achieved more than 10 million paid downloads.
It's also bullish about the gambling space, thanks to a surge of activity on both browser-based applications and native smartphone apps, and deregulation of the European remote gambling laws.
Report author Windsor Holden said: “While revenues from traditional staples of the mobile entertainment sector – such as ringtones and logos – have gone into steep decline over the past couple of years, the tremendous scaling up of activity in games, streamed music and social media has driven strong overall growth.
"Furthermore, as major retailers, brands and media organisations increasingly utilise mobile content to drive awareness of and engagement with their products, this growth will continue.”
The Mobile Entertainment white paper is available to download here.