Adult video chat services take off
20 February 2008
Adult video chat services take off
Worldwide revenues from adult video chat services are expected to skyrocket over the next five years, reaching $1.5bn by 2012, according to industry analysts.
While adoption levels of video chat services are comparatively low, even by the standard of mobile adult services, Juniper Research estimates that the average monthly spend of this niche market is typically ten to 20 times higher than for other adult services.
"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 Juniper analyst Windsor Holden.
"With 3G penetration expected to exceed 25 per cent in many developed markets by the end of 2008, there is a significant opportunity for service providers to launch and monetise live chat services," he said.
Juniper anticipates that video chat will comprise 33 per cent of adult mobile service revenues by 2012, compared with just 8 per cent in 2007. And Western Europe is expected to remain the largest regional market for mobile adult services throughout this period, with revenues rising from $78m in 2007 to $453m by 2012.
But while users of mobile adult services are less price sensitive than those of other mobile content, Juniper discovered that offering subscription services at a reduced price for a trial period ultimately increases revenues, as such a period allows the customer to decide whether or not the content is worth a greater investment.
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