The adult entertainment industry has long been considered as an early adopter of new technology, and has been responsible for helping to drive of new delivery platforms including VHS, DVD and more recently broadband Internet access. But the rapid increase in consumer broadband penetration has been a double-edged sword for the sector; while new providers have emerged which leverage Web 2.0 to provide popular online services, many established players for whom physical media sales have traditionally accounted for a significant proportion of revenues are struggling to compete against the plethora of free sites.
With DVD and magazine sales falling fast as consumer consumption patterns change, companies must react quickly to retain a pivotal market position. The additional opportunities afforded by mobile, interactive TV and gaming platforms provide new opportunities, but adds to the evident fragmentation of both content services and business models.
Key features of this report
- Overview of the industry trends, technological evolution and changing business models that have driven development of the online adult entertainment market.
- Revenue forecasts to 2012 for adult entertainment revenues: includes breakdowns for online, mobile and broadcast services, plus DVD and magazine sales.
- Market projections for related communications and entertainment products and services including consumer broadband, mobile telephony and smart phone shipments.
Scope of this report
- Gain a comprehensive understanding of how market trends are boosting the potential of online adult entertainment services, and the impact such developments will have on traditional business models and strategies.
- Understand how the competitive environment is changing, and specifically how the emergence of adult tube sites has disrupted the traditional status quo.
- Quantify the adult entertainment market opportunity, gaining an insight into the revenue potential of online, mobile and broadcast adult services, while gauging how demand for physical media will fall.
Key Market Issues
- Although adult content remains prohibited or strictly controlled in many country markets, in general there has been a relaxation of legal restrictions over recent years. However, some markets – notably China – are strengthening their anti-pornography stances, providing a major challenge for many across the industry.
- Just like the music industry before it, the adult entertainment sector is seeing rapid declines in its core business (i.e. DVD and magazine sales), with digital distribution essentially needing to fill this void to maintain revenue growth. Consumer consumption of adult content has shifted from physical media to the web, while online usage is changing rapidly as technological advancements allow the deployment of more advanced and interactive multimedia services.
Key findings from this report
- Fragmentation is rife. Within the online adult entertainment industry, there are a small number of large firms and a huge number of smaller firms; the rise of tube sites means that this proliferation is more marked than ever before.
- The wide range of content available for free will continue to have a negative impact on premium providers’ ability to attract and retain fee-paying clients.
- Relative to tube sites, the online destinations of leading established market players attract far lower traffic volumes and usage.
Key questions answered
- What are the major trends shaping the online adult entertainment market?
- Why are traditional adult entertainment firms investing so heavily in the deployment of online services?
- Which factors are likely to restrict the potential of online and mobile adult entertainment services and why?
- To what extent will adult tube sites threaten the traditional status quo across the adult entertainment industry?
- How will the market for adult entertainment services evolve, and which future trends will impact on developments over the course of the next 2-3 years?