Adult VR Is Growing as a Profitable Market
A recent series of events is showing adult industry insiders that all the buzz about virtual reality is on a trajectory similar to the rise of mobile and unlikely to flame out the way 3D TV or cryptocurrency have over the years.
When trying to identify trends that are real and those that are pure fantasy, it is essential to look for verifiable evidence and to discard all of the alternative facts marketers try to use in building hype.
Fortunately, the January tradeshows and sales data from leading VR manufacturers are now lighting up the runway for adult VR to prove itself very quickly.
Alec Helmy, the president and publisher of XBIZ, told me that through the years he’s seen all kinds of innovations come and go, but the interest in VR at the recent XBIZ Show was definitely real.
“Over the past couple of years, we’ve seen more and more businesses enter the VR space and quite a few are already touting strong conversion rates, which is assuring from a viability standpoint,” he told me. “After years of stagnation within adult in terms of innovation, it’s very refreshing to see cutting-edge companies like Terpon break into adult with groundbreaking offerings.”
Terpon was everywhere at the January events, and that huge splash was not an accident.
We understand we have to solve the chicken and the egg issue for many in the market. On the one hand, there are content creators waiting for a mass market audience to arrive, and on the other hand there is a mass market audience waiting for publishers to create compelling content to make their purchase of VR gear viable.
Our presence at the January shows wasn’t just throwing money around, I learned long ago that in the technology sector you must go big or go home.
That’s why we have decided to focus on the VR webcam sector first. In the coming months, Terpon content partners will create millions of hours of live interactive sex shows that demonstrate the true power of virtual reality when it comes to creating an intimate and engaging experience that recorded material can’t match.
What’s important for business owners to understand, is that when they say it won’t happen, the truth is … it’s already happening!”
Fortune magazine in its October issue reported that 140,000 HTC Vive headsets were sold since it launched in April.
Leading market analysts at SuperdataResearch.com predicted 2.9B in VR gear sales by the end of 2016 and they expect that number to nearly triple in 2017.
Note that they are tracking the hardware sales only, not the ancillary sales expected for content creators in the mix. For that we would have to look to people with a more direct connection to the pulse of adult VR consumers.
“Here is what I can tell you about YanksVR.com,” said Todd Spaits of Yanks. “We saw a major spike in sales after Christmas as consumers unwrapped their VR gear from under the tree. What’s much more significant is that we have raised the join price of YanksVR three times since we launched it, and have not seen any drag on our conversion ratios.
“When is the last time someone told you they are raising their price on porn and customers don’t mind because they are willing to pay more for the highest quality experience they can get. Is VR a panacea for all the things that have caused the adult entertainment industry to cool off in recent years, no I don’t think it is, but is VR a game-changing technological advancement that will move the market forward the way mobile did in the past few years … absolutely.”
“I was skeptical of all the VR hype when I first started hearing it, but the facts are becoming undeniable at this point, even if you try to overlook them,” said Stan of ModelCentro.com “In this business lots of people claim they have the new best thing, even when what they have is just a lot of hot air.
“However, at the recent January shows, ModelCentro teamed up with Terpon and we gave away 5,000 VR headsets to people. These were quality VR visors, not junk cardboard. At first I was thinking 5,000 was too many for the demand we would get, but now I’m wishing we had 50,000.
“In the hours after the events, traffic on SnapCentro.com surged more than 650 percent, and I had people asking me everywhere I went where they could get a headset and if I had any left. I’m now investing in new VR niches that will soon be announced for our fans, performers and affiliates to monetize. VR isn’t virtual anymore … it’s real!”
“From my own experience, I have moderated several panels about VR over the last two years,” said Stewart Tongue of EngineFood.com. “During that time, I’ve also worked directly with more than a few VR companies in mainstream and adult.
“At first, they each wanted my help crafting a path toward market penetration, aimed at educating consumers and creating greater interest in VR overall. Now, hardly anyone ever asks about that anymore. The market is made … and the people who are getting in now are the ones who will be making bank for years to come.
“If you missed out on tubes, missed out on mobile, and in hindsight thought you could have made millions with what you know now… this is that opportunity for virtual reality, and anyone who sits on the sidelines will be wondering what happened to their profits a few years from now. Traditional content will still have its place in the market, and so will free porn or mobile, but VR is about to become an expected kind of content, not just an option in the mind of millions of paying customers.”
Jean-Claude Artonne, CEO and founder of Terpon, started his career as an officer and pilot in the French Air Force. He has since accumulated 30 years of successful entrepreneurial experience in a variety of sectors including optics, consumer electronics, biotech, aeronautics and real estate. A holder of worldwide patents, in 2001 Artonne first launched a Canadian company with roots from the south of France, leading the market in ultra-wide field-of-view optics and in 360-degree panoramic imaging. He then created a Swiss company that won the Best Innovation & Design Award at Las Vegas’ CES 2012 show for the first 360-degree digital camera of its kind. Now, as the CEO of Terpon, his goal is to provide the highest quality VR webcams for models, studios and fans.