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USD2.3bn Market Potential of Mobile
Adult Content
Only Achievable Through Strong Controls
The market for erotic content for mobile devices is
predicted to be worth USD2.3bn by 2010, but realisation of
this is highly dependent on mobile phone carriers and
content providers working with regulators in order to determine
solid
controls and age verification procedures. This is one of the
conclusions to come out of the research for Informa Telecoms
and Media's new report, Mobile Adult Services. "The key to
turning erotic mobile content into a sustainable revenue
stream is to adopt a responsible approach, making sure
subscribers who wish to view such content are age verified
and that those providers who are looking to make a quick
buck are squeezed out of the equation", said Daniel
Winterbottom, senior research analyst at Informa and
author of the report.
The report goes on to commend the stance taken by the
operators in the UK and especially the Vodafone Group
for the proactive approach adopted to introduce controls
that protect minors whilst not restricting customers who
wanted to purchase erotic material. "Of course, there is an
element of self preservation involved, but it would be
churlish not to recognise the positive standard that the
UK operators have set for other cellcos globally," said
Winterbottom. "The formation of the Independent Mobile
Classification Board (IMCB) has allayed fears that strict
regulation would be introduced, ruining the market for the
more responsible providers".
The introduction of age verification systems in the UK, in
line with stipulations set out by the IMCB, has surprised
many in the industry by resulting in an increase in traffic
for adult content, rather than stifling usage levels.
One of the proposed reasons behind this is that consumers
have a higher propensity to use services that they are
confident in - the robust controls are a far cry from the
chaotic and unregulated Internet environment.
Further research in the report looks at the potential
outcomes in other regions with regards to regulation.
"We're seeing the Italian operators take a similar approach
to those in the UK and banding together to address the issue
of content control, averting any possible heavy-handedness
from the regulator there" commented Winterbottom. "The
situation in the US is slightly different in that many of the
operators have taken a walled garden approach to mobile
content, and have therefore been relatively unconcerned
with the issue of content control. However, consumer pressure
and the success of the direct-to-consumer channel for content
distribution is meaning that this content strategy is
unlikely to survive any significant length of time.
Without controls, operators will find themselves being
used to distribute adult content whether they like it or not".
The report estimates that by 2010, there will be over 114
million regular users of mobile adult content globally.
However, this figure hinges on operators and content
providers creating a robust system for content control,
one that allays any concerns from the regulators and one
that creates a trustworthy environment in which consumers
can feel safe when purchasing premium content. "In the
adult market, the Internet has tarnished the purchase
of premium content for many. However, given the close
relationship between mobile operator and the consumer,
and with a responsible strategy, there is no reason that
this market cannot generate revenue for all in
the value chain" said Winterbottom.
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About Mobile Adult Services
Mobile Adult Services provides thorough analysis of the
adult content industry as well as market forecasts
to 2010 for all content segments and analysis of ringtones
and adult games for all world regions.
For more information please visit
http://click.cminteractive.com/?mbwBCMD4=3999
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About Informa Telecoms & Media
Informa Telecoms & Media provides business intelligence
and strategic services to the global telecoms and media
markets. All of our products and services - from news,
trend analysis and forecasting to industry data,
face-to-face events and training - are driven by
our deep understanding of the markets we serve and by
our goal to help our clients make better business
decisions.
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