Or so says, Strategy Wireless, and predicts adult entertainment services will generate only 5 percent of the money made on mobile entertainment services in 2008.
Global research and consulting company Strategy Analytics recently released a report covering the future of wireless adult entertainment services. Noting that adult community services, such as those recently announced by AT&T Wireless and Match.com, will ramp up quickly boosted by the growth of the camera and videophone markets, the report does not paint a picture of wireless adult entertainment services in general.
Although skeptical of the revenue potential that streamed or downloaded adult services offers to wireless clients, the report further recommends that carriers must move swiftly to capitalize on their core messaging strengths by bundling branded dating applications into their service portfolios.
Senior Analyst Philip Taylor notes, "We believe the advantages of the mobile phone as a personal and discrete device for viewing pornography are overstated. The value of the mobile channel to the porn industry will be greater as a CRM-tool than as a distribution medium."
According to Strategy Analytics, speculation as to the potential offered by wireless adult services is often based on the premise that fixed Internet pornography providers are raking it in. The research firm says it disputes the often cited figure for global adult entertainment revenues of $20 billion USD, and believes this figure is actually closer to the $4 billion USD mark, of which only around $500 million USD will be generated on-line.
David Kerr, Vice President of the Strategy Analytics Global Wireless Practice, adds, "This is less than half of the value of the ringtones market in Western Europe in 2002. We believe that, with so much pornography available for free on the fixed Internet, demand for adult material will continue to be largely met by fixed Internet services."
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