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Increasing adoption of streamed video and video chat services together with a sharp rise in 3G services is the root cause of rising acceptance of mobile adult services. Surprisingly, major part of revenues is expected from underdeveloped North American markets, where on-portal content restrictions are strict.
Report author Dr Windsor Holden said, “While operators in the US and Canada are still very reluctant to introduce age-verification systems and offer adult content, it is a completely different story off-portal with a number of service providers now offering D2C content and services aimed at those markets. Furthermore, as mobile subscribers become more comfortable and familiar with the off-portal environment, then the traffic to these sites is likely to mushroom.”
Some of the other findings from the Juniper report are:
Western Europe will remain the largest regional market for mobile adult services throughout the period covered by the report, with revenues rising from $775m in 2007 to $1.5bn by 2012 Global revenues from video chat services will rise from just $138m in 2007 to more than $1.5bn by 2012 While users of adult services are far less price sensitive than consumers of other mobile entertainment services, service providers should be careful not to overprice content