Last modified on Wednesday, 28 November 2007 01:59
Juniper Research claims that the adult mobile phone industry will be worth $3.5 billion a year by 2010.
According to a Juniper Research report, the increasing adoption of streamed video and video chat services, fueled by a sharp rise in the adoption of 3G services, will fuel the boom. A significant proportion of new revenues will come from the U.S., despite the existing restrictions on on-portal content.
Report author Dr Windsor Holden said that while operators in the U.S. 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.
He added that as mobile subscribers become more comfortable and familiar with the off-portal environment, then the traffic to these sites is likely to mushroom. Adoption in Eastern European markets was rising at a higher rate than previously anticipated, in part thanks to the greater willingness of operators in the region to offer a wide variety of explicit, white-label content on-portal.
Western Europe will remain the largest regional market for mobile adult services, Holden said.