HAMPSHIRE, England - Global revenue from mobile adult video chat services is expected to rise sharply over the next four years, reaching $1.5 billion by 2012, according to a Juniper Research report released Wednesday.
The report states that while adoption levels of such services are comparatively low, even by the standard of mobile adult services, the average monthly spending in the market typically is 10 to 20 times higher than for other adult services.
"Those video chat services already deployed are showing quite remarkable levels, both in terms of customer retention and average usage, with users regularly returning to chat to the same hostess and developing a virtual relationship with her," said report author Dr. Windsor Holden. "With 3G penetration expected to exceed 25 percent in many developed markets by the end of 2008, there is a significant opportunity for service providers to launch and monetize live chat services."
The report also recommended that while users of mobile adult services are less price-sensitive than users of other mobile content, offering subscription services at a reduced price for a trial period would ultimately increase revenues.
Other findings from the Juniper Research report include:
- Video chat will comprise 33 percent of mobile adult service revenue by 2012, compared with 8 percent in 2007.
- Western Europe will remain the largest regional market for mobile adult services throughout the period covered by the report, with revenue rising from $78 million in 2007 to $453 million by 2012.
- Given service providers' concern about operators' ability and inclination to provide adequate marketing and distribution channels for their content, service providers should continue to explore direct-to-consumer alternatives.
Juniper Research assesses the current and future status of mobile adult services market, based on interviews, case studies and analysis from representatives of some of the leading organizations in the mobile adult services industry.
White papers and further details of the study "Mobile Adult: Subscriptions, Downloads, Video Chat and Text-Based Services 2007-2012 (Fourth Edition)" can be downloaded at the Juniper Research website.
