Juniper Research finds that the revenues from mobile adult subscriptions will reach nearly $1 billion by 2015. This growth will be fuelled by rises in the smartphone and tablet user bases alongside an increase in the average spend per user despite increasing competition from free content.
A dramatic rise in the tablet user base will also drive the increase in subscription revenues; particularly as the majority of tablets will be in the very regions which have historically spent the most on adult subscriptions. Tablets offer users a more engaging experience as they are able to see content in more detail as well as see more options when browsing. Niche tastes will also continue to drive users towards subscription accounts.
While revenues will grow significantly, the report also found that in emerging markets growth will be restricted by low smartphone take up and a lack of viable payment methods, such as credit card usage. In many cases, legal and social barriers will also inhibit the growth of mobile adult subscription revenues in these markets.
According to report author Charlotte Miller, “Mobile adult subscriptions will be a growing source of mobile adult revenues. Niche content has always been a driver of paid adult content and this is no less true on mobile. While there has been a proliferation of free content, it remains that case that for specialised content, users must continue to pay.”