Wireless smut to generate mega-bucks, study finds

Video chat services will help fuel mobile adult content revenues as the worldwide market for the steamy stuff reaches $1.5 billion by 2012, according to new figures from Juniper Research.
Interactive video accounts for just 8% of all adult mobile services today but will generate one-third of all such offerings by 2012, Juniper predicted. Western Europe will remain the largest regional market for wireless adult wares, with revenues rising from $78 million last year to $453 million.
The worldwide market for porn and other adult content has failed to gain traction in North America as carriers have kept controversial content at arm’s length. But while mobile adoption levels are low “even by the standard of mobile adult services,” the average monthly spend on the wireless smut market is typically 10 to 20 times higher than for other adult services, Juniper reported.
“Those video chat services already deployed are showing quite remarkable levels both in terms of customer retention and average usage, with users regularly returning to chat to the same hostess and developing a virtual relationship with her,” said Dr. Windsor Holden, who authored the report. “With 3G penetration expected to exceed 25% in many developed markets by the end of 2008, there is a significant opportunity for mobile adult services to launch and monetize live chat services.”