Report: Mobile Adult Revenues Predicted to Rise

CYBERSPACE — Mobile adult revenues are expected to reach nearly $3.5 billion dollars annually by 2011, according to a new report by Juniper Research.

Europe is expected to lead sales with 39 percent of the market; while the Asian Pacific region is expected to come in second with 33 percent of sales. All told, Juniper predicts $14.5 billion in revenues from 2006-2011.

The American market is predicted to continue to be hampered by technological issues and the reluctance of carriers to allow adult content in “on deck” applications, services provided by the carriers themselves.

While early efforts within the market focused on providing basic text-based services, high-quality graphics and video have increasingly been taking over.

The report credits this rising popularity of mobile video and chat services as well as an increase in the use of 3G services, for the dramatic rise in revenues. The report predicts that by 2011, video services will account for more than 70 percent of mobile adult revenues.

According to the report, “Mobile is the latest channel for the distribution of adult content and with the increasingly rapid roll out of 3G services, incorporating enhanced mobile video and graphics capabilities, it promises to be one of the most intriguing.”

Juniper also credits the consistent demand for adult entertainment as one of the driving factors in the growth of the mobile adult market.

"Adult content business models have succeeded in other major delivery media: print, cinema, DVD, per-per-view TV, etc. There is no reason why the mobile channel should not be equally profitable for adult content industry players,” said Bruce Gibson, research director at Juniper Research. “The mobile channel will provide a different way of presenting adult content to traditional delivery channels and will reach new audiences.

According to the report, content providers should focus on offering low prices, despite the fact that adult consumers tend to be less price-conscious than mainstream consumers.

“Mobile is about fun and instant gratification,” Gibson said. “I think the biggest opportunity is at the casual and ‘softer’ end of the adult market — lads in pubs sharing a video clip after a few pints and people looking for a bit of fun when they have spare time to kill, etc. — not the hardcore stuff."