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Mobile Adult Content Services Generate Increased Revenue

October 15, 2010

Juniper Research, which specializes in identifying and appraising new high growth market sectors within the mobile ecosystem, has published a new report on the revenues expected from mobile adult content and services. According to the report, revenue driven primarily through the uptake of video chat and subscription-based services is expected to reach $2.8 billion by 2015, up by about $1.1million compared to 2009.

Interestingly the increase is despite the tremendous increase of free content available via tube and TGP sites, which has caused a decline in revenue in Western Europe. Video chat service providers are extremely positive as they can generate strong revenue despite a low user base. A combination of high-retention rates and high ARPU is responsible for this.

 As D2C adult sites gain traction and traffic by offering a wide range of specialized niche content, the industry is experiencing a transition from pay-per-download to subscription models.

It will however be some time before monetization of traffic really takes off. Although the rise in smartphones led to a tremendous increase in mobile traffic, monetizing the traffic by offering mobile-optimized content and billing mechanisms is only just beginning. Also, the transition to open Internet, where there is so much free content just for the asking doesn't make it any better for service providers.

The Mobile Adult Video Whitepaper is available for download from the Juniper Research portal, together with further details of the study 'Mobile Adult Strategies: Downloads, Video Chat, Apps & Messaging 2010-2015.'

Founded in 2001 by the Wireless Industry Consultant Tony Crabtree, in the midst of the telecoms and dot-com crash Juniper Research provides research and analytical services to the global hi-tech communications sector, providing consultancy, analyst reports and industry commentary.

Mini Swamy is a contributing editor for unified communications. To read more of her articles, please visit her columnist page.

Edited by Jaclyn Allard

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