USD2.3bn Market Potential for Wireless Adult Content

Europe : 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 strictregulation 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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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.