Digital Adult Content Whitepaper PDF

DIGITAL ADULT CONTENT For Your Viewing Pleasure Whitepaper www.juniperresearch.com DIGITAL ADULT CONTENT For Your Viewing Pleasure...

DIGITAL ADULT CONTENT For Your Viewing Pleasure Whitepaper www.juniperresearch.com DIGITAL ADULT CONTENT For Your Viewing Pleasure 1 1.2 Key Service Types 1.1 Background 1.2.1 Outline of services 1.1.1 Digital Adult Content i. Images  Images which can be downloaded or viewed on mobiles, tablets and Broadly speaking, digital adult content is often perceived to include activities such as gambling and themes such as depictions of violence (on connected devices are often animated or static images of amateurs, video or in videogames) or even language containing sexually-explicit porn stars, glamour models and celebrities. There is a vast amount of words or other obscenities (however they are defined). free images, as well as content, which can be billed on a download or subscription basis Juniper’s research does not examine those areas, instead focusing solely ii. Video-based services on the market for adult content known as erotica or pornography. This research considers content which would be classed as legal in the UK,  3G, 4G and Wi-Fi have changed the nature of video-based services, as and does not investigate or endorse in any way, content which would be they make the streaming of high quality video quicker and more readily classed as illegal; for instance child pornography. available to users ‘on the go’. Smartphone-optimised adult sites have become prevalent since the removal of adult content from app stores. 1.1.2 The Adult Content Industry Adult streams are offered either on a standalone basis or as an add-on to a mobile TV service. The adult industry is credited as having kick-started and developed eCommerce and online video streaming, well before Internet leaders such  Video chats, or live webcams, where the user engages with the model of as Facebook, Google and Amazon were established. choice via video or text/instant messaging as they watch a live stream of the model, have become increasingly popular over the last few years, Juniper examines the predominant forms of online adult content, including with a significant proportion of service users repeatedly returning to the streamed/downloaded media, video chat and text based services, same cam girl/hostess. analysing the prospects for each. In addition to this, the potential of future adult content access mechanisms and formats is assessed, such as iii. Mobile Porn 2.0 connected devices and those which incorporate AR and, in part, VR (Virtual Reality). Web 2.0, characterised by a proliferation of User Generated Content and social networks, has spilled over into pornography, leading to the advent of ‘tube’ sites. Services such as PornHub allow users to upload their own DIGITAL ADULT CONTENT For Your Viewing Pleasure 2 content, rate content and talk to other members of the service, much like 1.3.1 Popularity of Adult Content on Connected TVs YouTube  With the advent of connected TVs, (any TV with a broadband iv. Erotic games connection, ie those connected via games consoles, Blu-ray, set-top boxes or connected Smart TVs) users have been able to stream digital Adult entertainment games are typically derived from already popular adult content directly to their TV. Content is far more readily and, in conventional games. For example, a poker game may become a strip many cases freely, accessible than with broadcast/cable TV adult poker, requiring little modification by the developer; simulated pets could services, which are often time-constrained (usually only running for become simulated girlfriends on a user’s device. However, adult content is several hours per day) and are almost exclusively subscription-based. restricted by most app stores, such as Apple’s App Store and Google Play. Even so there are numerous adult game apps available for download.  Whilst in the case of many connected TV devices, native apps for adult content are not available, several content providers, such as SugarDVD, v. Text-based adult services have found ways to deliver content through web browsers. SMS chatting was once a prominent mechanism for the delivery of adult  SugarDVD is a subscription service which has developed apps that work entertainment, but is in decline as the market for adult videos grows and with PlayStation 3, PS4, Xbox One, and Xbox 360, along with Roku, the use of SMS in general declines in developed markets. The service Boxee, Google TV, iOS, Windows, Mac and Android. SugarDVD is quick involves users sending PRSMS (premium rate SMS) to models and to point out that although it needs a browser log-in, it is an actual app. receiving replies. Such services can be offered on almost any phone, so there is still a market in countries where 3G adoption is lower. Even in 1.3.2 The App Store as a Method of Content Delivery developed markets such as the UK, services still exist as a small number of consumers prefer text-only interactions. The app store is popular for a number of reasons: i. With developers: 1.3 Market Trends  Low Barriers to Entry: The cost to enter app stores’ developer The adult industry has faced several challenges in recent years as more programmes is low. traditional forms of content proliferation, such as SMS and Adult  Monetisation Potential: The primary app stores give developers a Pay-per-Video, have seen a decline in either revenues, popularity or both, as well as competing with the large amount of free content available proportion of revenues made. online. DIGITAL ADULT CONTENT For Your Viewing Pleasure 3 ii. With users: 1.4 Market Hurdles  Smooth User Interface 1.4.1 Digital Adult Content Hurdles: Declining Viewers?  Ecosystem of Store, Device and OS (Operating System) - The major Monetisation Issues? storefronts are often part of a greater ecosystem, which also includes i. Viewer Decline: devices and OSs. This familiarity aids users in navigating and using the available programmes. Leading adult sites have struggled to maintain revenues, with popularity declining as consumers seek out free content from alternative sources, Figure 1.1: The Mobile Adult Content Value Chain such as tube sites and pirated downloads. Figure 1.2: Most Popular Adult Websites (Ranking 2013-2015) 2013 2015 Site Global US Global US Xvideos 34 39 44 76 Xhamster 44 42 66 106 PornHub 59 33 76 74 Redtube 76 71 150 292 Youporn 91 77 161 351 Livejasmin 94 66 170 193 Source: Alexa, Juniper Research ii. Generating Revenue: Which Monetisation Model? Source: Juniper Research The adult industry is faced with a wealth of choices in terms of monetising content; traditionally per event billing has been the main form of monetising online video. The industry has also moved away from per event billing towards the subscription model, notably in the live cam space. DIGITAL ADULT CONTENT For Your Viewing Pleasure 4 These revenues are bolstered by advertising, with affiliate networks serving up ads from sites such as Juicyads.com and Exoclick.com. 1.4.2 Content Delivery Set-backs: The App Stores Stance Delivery of content is another issue which the adult industry has faced, with the vast majority of app stores refusing adult content altogether. Apple removed existing adult content from the App Store in 2010 and since that time has declined to host any ‘overtly sexual content’. One company, Mikandi, has solved this issue by creating its own adult app store. The largest mainstream app store still hosting adult content is believed to be GetJar.  The store offers adult as 1 of 22 content categories.  Apps are free to end users, and serve as promotion for content providers. DIGITAL ADULT CONTENT For Your Viewing Pleasure 5 Figure 1.3: Total Digital Adult Content Video Views 2015: 136.6 Billion 1.5 Digital Adult Content Forecast Summary  New data from Juniper Research has found that over 136 billion adult videos will be watched in 2015 alone; this is 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. 1.5.1 US Sees Greatest Growth  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 West 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. Source: Juniper Research DIGITAL ADULT CONTENT For Your Viewing Pleasure 6 Order the Full Research  Interactive Forecast Excel – Highly granular dataset comprising more than 225 tables and over 18,000 data points, allied to an Interactive Mobile Money Transfer & Remittances: Domestic & International Scenario tool giving user the ability to manipulate Juniper’s data Markets 2015-2020 (Interactive XL). Juniper Research is the only analyst house covering the popular and Publication Details profitable mobile and online sector of the adult industry. Publication date: July 2015 Juniper’s Digital Adult Content research provides an assessment of the mobile adult content ecosystem and, for the first time, considers content Author: Lauren Foye consumption via PC and connected TV platforms. It gives an overview of Contact Jon King, Business Development Manager, for more information: the latest developments, as well as an outline of services; including [email protected] content distribution, new technologies and strategic recommendations. Juniper Research Ltd, Church Cottage House, Church Square, Key Features Basingstoke, Hampshire RG21 7QW UK  Evaluates 5 key platforms: smartphones, featurephones, tablets, Tel: UK: +44 (0)1256 830001/475656 USA: +1 408 716 5483 desktop PCs & notebooks, connected TVs. (International answering service) Fax: +44(0)1256 830093  Provides revenue and usage forecasts for adult SMS, Pay-per-Video, http://www.juniperresearch.com videochat, adult subscription services and augmented reality.  Delivers insights and strategic recommendations.  Coverage of current market trends and developments. What’s in this Research?  Executive Summary - Slide set summarising key trends, sector dynamics, and market forecasts, allied to a series of strategic recommendations for players across the value chain (PPT).