[juniper research] A new report published today by Juniper Research forecasts that revenues from mobile adult content and services are expected to reach $2.8 billion by 2015, driven primarily through the uptake of video chat and subscription-based services. The increase – from $1.7 billion in 2009 – comes despite the proliferation of free content available via tube and TGP (thumbnail gallery post) sites which has depressed revenues in Western Europe.
Video chat service providers have reported a combination of high retention rates and – with services often billed at several dollars per minutes – of very high ARPU. Thus, even with a comparatively low user base, service providers can generate extremely strong revenues. Meanwhile, the industry is experiencing a transition from pay-per-download to subscription models as D2C adult sites gain traction and traffic by offering a wide range of specialized niche content.
However, the mobile adult strategies report found that while the rise in consumer smartphone adoption had led to a dramatic upsurge in mobile traffic to leading adult websites, sites are only now beginning to monetise this traffic by offering mobile-optimised content and billing mechanisms. Furthermore, the transition from walled garden to open Internet has seriously impacted on-portal adult revenues in more mature markets.
According to report author Dr Windsor Holden, "In Western Europe, adult areas on operator portals were relatively successful, as were off-portal services billed via PRSMS. As people have increasingly surfed the Internet via the mobile, they're discovering a wealth of free content – much of it not optimised for the mobile experience, but still more than sufficient for casual users."
Press Release: Videochat and Subscription Services to Drive Mobile Adult Revenues to $2.8bn by 2015, Juniper Report Finds
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