The demise of adult might have been called wrong, with new data from Juniper Research predicting that use of video – to watch and to chat – is set to grow, however revenues are going to edge up rather than explode.
The new data from Juniper suggests that more than 136 billion adult videos will be watched in 2015 alone, with this set to grow to 193 billion by 2020. On a global scale, each smartphone user of adult content is expected to watch an average of 348 videos this year.
Overall, video views are forecast to grow by almost 55% by 2020. While there will be a marked increase in usage levels in developing markets, net growth will be greatest in the US, with other mature markets – such as Western Europe, seeing a more modest increase. In developing regions, service uptake will be rapid, driven by increasing availability of 4G and Wi-Fi, as well as increases in smartphone and tablet ownership.
Juniper’s latest research, Digital Adult Content: Market Trends, Forecasts & Revenue Opportunities 2015-2020, found revenue growth to be steady rather than spectacular over the next five years, but specific niches such as videochat and web cam offerings will outperform the overall sector. The research observed that such services were being monetised on a subscription rather than pay per view basis. It cited that a significant proportion of users preferred to revisit the same hostess as a rationale underpinning this trend.
Meanwhile, the research noted that in both developed and developing markets, the number of customers taking out ‘solus’ mobile subscriptions would increase. However, it cautioned that subscription revenues would begin to decline by 2020 due to the continued prevalence and accessibility of free content.
The report also finds that Adult SMS will continue see a severe decline in revenues, with the majority of usage occurring in the Indian Subcontinent. Content delivered as augmented reality will see growth across the period, although usage will remain the preserve of a niche user base.
The whitepaper, Digital Adult Content ~ For Your Viewing Pleasure, is available to download from the Juniper Research website together with details of the new research and interactive dataset.