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USD2.3bn Market Potential of Mobile Adult Content Only Achievable Through Strong Controls |
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Written by Informa Telecoms & Media
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Wednesday, 13 July 2005 |
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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 strict regulation
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.
About Mobile Adult Services
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.
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