Mobile Adult Content Robust Despite Economy

February 23, 2009

Despite the deepening recession around the world, the global, mobile adult-content market is still going strong and is expected to reach $4.9 billion by 2013, propelled – in large part – by increasing demand for video chat services, according to a report from Juniper Research.

Juniper’s Mobile Adult Content report found that though adult-only video chat services are used by a comparatively small number of consumers, their uncharacteristically high spend levels – in many markets averaging several hundred dollars per user per year – are expected to push the value of the market past the $1 billion mark by 2011.

“We anticipate total revenues for 2008 of around $2.2B, which are around 3.5% below our previous forecasts,” said report author Windsor Holden. “And while in some instances usage levels are marginally lower than we expected, we are actually seeing significantly higher spend per user on video chat and on some subscription-based services.”

Regulations Threaten Industry

Despite growing demand, the report also noted that a number of markets – such as Indonesia and Switzerland – have tightened the laws governing the access of adult content, while some operators in the US remain wary of offering such content on their portals. Regardless, in other places – particularly in Europe and parts of Latin America – on-portal adult content, which is usually managed by third-parties – is becoming far more prevalent.

Other report findings:

  • Western Europe will remain the largest regional market for mobile adult services throughout the period covered by the report (2007 – 2013), followed by the Far East & China.

juniper-research-total-revenues-adult-mobile-services-2007-2013.jpg

  • Premium content providers are becoming increasingly concerned at the volume of free adult content available via the internet.

About the research: The data from the report is based on Juniper’s assessment of the current and future status of mobile adult services based on interviews, case studies and analysis from representatives of industry organizations.

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