The mobile adult content market is forecast to grow from its 2006 level of $1.4 billion to more than $3.3 billion by 2011, according to the latest study by Juniper Research. The most lucrative regional market over that period is expected to be the well developed—and high priced—European market, with the vast Asia Pacific market running a close second.
Over the whole 2006-to-2011 period, Juniper estimates mobile adult entertainment services will generate an impressive $14.5 billion in revenues, with Europe contributing 39 percent and Asia Pacific 33 percent.
Erotic adult entertainment is big business. What’s more, underlying drivers indicate the demand is fairly constant. Mobile is the latest channel for the distribution of adult content, and with the increasingly rapid rollout of 3G services incorporating enhanced mobile video and graphics capabilities, it promises to be one of the most intriguing.
Early market development was focused on text-based services, but these are rapidly being displaced by products and services incorporating high-quality graphics and video content. By 2011, video-based services will account for more than 70 percent of mobile adult content market revenues.
“Adult content business models have succeeded in other major delivery media: print, cinema, DVD, [pay-per-view] TV, etc.,” according to Bruce Gibson, research director at Juniper Research. “There is no reason why the mobile channel should not be equally profitable for adult content industry players. The mobile channel will provide a different way of presenting adult content to traditional delivery channels and will reach new audiences.
“Mobile is about fun and instant gratification,” he continued. “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.”