The report found that while such services were utilised by a comparatively small number of consumers, the high spend levels – in many markets averaging several hundred dollars per user per annum – are expected to push the value of the adult video chat market past the $1 billion mark by 2011.
The report also found that mobile adult service revenues were proving relatively robust despite the global economic slowdown. According to report author, Dr Windsor Holden: “We anticipate total revenues for 2008 of around $2.2 billion, which are around 3.5% below our previous forecasts. And while in some instances usage levels are marginally lower than we expected, we are actually seeing significantly higher spend per user on video chat and on some subscription-based services.”
However, the report also noted that a number of markets – such as Indonesia and Switzerland – had tightened the laws governing the access of adult content, while operators in the US still remained wary of offering such content on their portals. Nonetheless, it observed that elsewhere, and particularly in Europe and parts of Latin America, on-portal adult content – usually managed by third parties – was becoming far more prevalent.
Other findings from the Juniper report include: Western Europe will remain the largest regional market for mobile adult services throughout the period covered by the report, followed by the Far East & China; and premium content providers are becoming increasingly concerned at the volume of free adult content available via the Internet.