HAMPSHIRE, UNITED KINGDOM—According to a new report from Juniper Research, the surge in consumer Smartphone adoption, combined with low cost data bundles, has led to a sharp rise in the number of consumers surfing mobile adult sites. The trend has translated into a marked increase in subscriptions to mobile adult paysites, with the number subscribing to such sites expected to exceed 35 million worldwide by 2015.
The Mobile Adult report also noted that the boom in consumer Smartphone adoption has indirectly resulted in the adult industry generating substantial revenues in the U.S. for the first time. The market had previously been constrained by carrier reluctance to offer adult content on-portal, or on-deck, but Juniper found that direct to consumer (D2C) adult sites are profiting as consumers increasingly surf the internet via their Smartphones.
Furthermore, the availability of a strong mobile revenue stream has come at a critical point for the adult industry. According to report author Dr Windsor Holden, "The opportunity offered by mobile couldn't be [timelier], given that sales from DVDs have collapsed while online pay sites have also lost customers and revenues as a result of the proliferation of tube sites."
Conversely, the imposition of stringent regulations prohibiting access to remote adult content in a number of Asian markets will adversely impact revenue growth within that region, while many European markets have also experienced a fall in sales as traffic to on-portal adult content has diminished.
The report also cautioned that the widespread availability of free content on thumbnail gallery posts (TGPs) would mean that revenue generation from casual users would in the future be extremely limited and that providers should focus on catering to customers seeking high-value niche content. It also stressed the importance of customer retention, highlighting the fact that many mobile providers have focused almost exclusively on traffic generation.
The Mobile Adult Video Whitepaper is available from the Juniper website.
