Reportlinker Adds The Future of Online Adult Entertainment: Surging demand, the rise of free porn and the emergence of new business models

Jan 19, 2010, 08:04 ET from Reportlinker

NEW YORK, Jan. 19 /PRNewswire/ -- Reportlinker.com announces that a new market research report is available in its catalogue:

The Future of Online Adult Entertainment: Surging demand, the rise of free porn and the emergence of new business models

http://www.reportlinker.com/p0172211/The-Future-of-Online-Adult-Entertainment-Surging-demand-the-rise-of-free-porn-and-the-emergence-of-new-business-models.html

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

1. 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.

2. 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.

3. Relative to tube sites, the online destinations of leading established market players attract far lower traffic volumes and usage.

Key questions answered

1. What are the major trends shaping the online adult entertainment market?

2. Why are traditional adult entertainment firms investing so heavily in the deployment of online services?

3. Which factors are likely to restrict the potential of online and mobile adult entertainment services and why?

4. To what extent will adult tube sites threaten the traditional status quo across the adult entertainment industry?

5. 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?

Table of Contents

The Future of Online Adult Entertainment

Executive summary 10

Market context: the rise of online services 10

Shifting the balance of power 11

Company profiles 12

The future of online adult entertainment 13

Chapter 1 Introduction 16

Introduction 16

Who is this report for? 16

Definitions 17

Adult entertainment 17

Convergence 17

Digital pay-TV (DTV) 17

Internet Protocol TV (IPTV) 17

Internet TV 17

Mobile TV 17

Peer-to-peer (P2P) networking 18

Social networking 18

Tube sites 18

User-generated content (UGC) 18

Video on demand (VOD) 18

Chapter 2 Market context: the rise of online services 20

Summary 20

Introduction 21

Online adult entertainment market trends 22

A highly fragmented market 23

DVD and magazine sales fall in the face of rising online uptake 24

Echoing developments in the mainstream multimedia market 24

Adult movie production and DVD sales on the decline 25

The explosion of online services 28

Broadband market development drives online adult entertainment opportunities 31

Higher speeds bring new content-related opportunities 35

Consumers exploit broadband potential 36

Long- and short-form content each have their place 37

Online video usage is increasing rapidly 40

Consumers flock to online adult services 41

Online adult content user demographics 43

Regulation and censorship provides significant challenges 45

Regulation varies considerably by country 46

Restrictive measures show varying levels of success 49

China's anti-pornography crack-down 50

Age verification comes under scrutiny 53

Piracy just as prevalent as in the mainstream entertainment sector 56

Chapter 3 Shifting the balance of power 60

Summary 60

Introduction 61

Shifting the balance of power 61

Tube sites make their presence felt 61

Low cost of entry results in a crowded market place 62

Revenue generation is a difficult task 64

Free online content impacts heavily on traditional players 67

Traditional players seek to catch up lost ground online 68

Tube sites offer some potential for content producers 69

Mobile opportunities increase 70

Adult mobile services develop apace 71

Rising 3G penetration boosts demand for mobile content 72

Device evolution boosts mobile content potential 75

Mobile TV opportunities limited in the short term 77

Alternative portable solutions are gaining more traction 78

Major hurdles remain 79

Continued demand for digital TV services evident 80

Chapter 4 Company profiles 84

Summary 84

Introduction 85

Private Media Group 86

Vivid Entertainment 90

Playboy Enterprises 92

New Frontier Media 97

Beate Uhse 100

Conclusions 102

Chapter 5 The future of online adult entertainment 104

Summary 104

Introduction 105

Future adult entertainment market trends 105

Generating revenue from tube sites will be a difficult task 105

A focus on interactivity and 'unpiratable' content 106

Consumers seek more interactivity 107

Live video chat services show their potential 107

Haptic content could become a reality 108

Online providers must ensure that content is regularly refreshed 108

Repurposing of content for multiple devices increasingly essential 109

Adult console games on the horizon? 109

High definition content and 3D-TV 110

Consolidation is on the cards 111

Online services to offset declining DVD sales 112

Asia-Pacific to become the largest online adult entertainment market 116

Index 120

List of Figures

Figure 2.1: Historic US adult video rental/sales revenues ($bn), 1992-2006 26

Figure 2.2: Private Media Group's declining magazine circulation 28

Figure 2.3: Worldwide consumer Internet access subscribers, 2007-2012 31

Figure 2.4: Consumer Internet subscribers by region, 2008 33

Figure 2.5: Internet subscribers by region, 2012 34

Figure 2.6: Broadband boosts multimedia usage (2008) 37

Figure 2.7: Short-form content still rules in the online world (2008) 38

Figure 2.8: Interest in user-generated content declines with age 39

Figure 2.9: Proportion of online population streaming online video, December 2008 40

Figure 2.10: Online video reaches 80% of US consumers 41

Figure 2.11: Adult and advertising account for a growing % of US online video 42

Figure 2.12: Demographic comparison of adult sites users: age 43

Figure 2.13: Demographic comparison of adult sites users: gender 44

Figure 2.14: Browsing location comparison 45

Figure 2.15: Legal status of pornography by country 47

Figure 2.16: China consumer Internet subscribers (000s), 2007-2012 51

Figure 2.17: Chinese adult content censorship appears to be working 53

Figure 2.18: UK teenagers accessing adult content 55

Figure 3.19: Tube sites drive adult video content usage 64

Figure 3.20: Redtube.com premium subscription offering 65

Figure 3.21: 3G share of worldwide mobile phone subscriptions & revenues, 2005-2013 73

Figure 3.22: Worldwide mobile connections and revenues, 2007-2013 74

Figure 3.23: Smartphone shipments by region (000s), 2008-2014 76

Figure 3.24: Global VOD revenues ($m), 2007-2012 81

Figure 4.25: Private Media Group revenue by sector (€000), 2002-2008 87

Figure 4.26: Private Media Group revenue sector share (% revenue), 2002-2008 89

Figure 4.27: Vivid Entertainment estimated revenue sector share (% revenue), 2005 and 2008 91

Figure 4.28: Playboy Enterprises revenue by sector ($m), 2003-2008 93

Figure 4.29: Playboy Enterprises revenue sector share (% revenue), 2003-2008 95

Figure 4.30: New Frontier Media revenue by sector, 2003-2008 98

Figure 4.31: New Frontier Media revenue sector share (% revenue), 2003-2008 99

Figure 4.32: Beate Uhse revenue by sector (€000), 2003-2008 100

Figure 4.33: Beate Uhse revenue sector share (% revenue), 2003-2008 102

Figure 5.34: Worldwide adult entertainment revenues by sector ($m), 2008-2012 114

Figure 5.35: Worldwide adult entertainment revenue sector share (% revenue), 2008-2012 115

Figure 5.36: Online adult entertainment revenues by region ($m), 2008-2012 117

Figure 5.37: Online adult entertainment revenue regional share (% revenue), 2008-2012 118

List of Tables

Table 2.1: Historic US adult video rental/sales revenues ($bn), 1992-2006 27

Table 2.2: Worldwide consumer Internet access subscribers, 2007-2012 32

Table 2.3: Consumer Internet subscribers by region, 2008 33

Table 2.4: Forecast consumer Internet subscribers by region (000s), 2012 35

Table 2.5: Adult and advertising account for a growing % of US online video 42

Table 2.6: China consumer Internet subscribers (000s), 2007-2012 52

Table 3.7: 3G share of worldwide mobile phone subscriptions & revenues, 2004-13 73

Table 3.8: Worldwide mobile connections and revenues, 2007-2013 75

Table 3.9: Worldwide smart phone shipments by region (millions), 2008-2014 76

Table 3.10: Global VOD revenues ($m), 2007-2012 82

Table 4.11: Private Media Group revenue by sector (euro 000), 2002-2008 88

Table 4.12: Playboy Enterprises revenue by sector ($m), 2003-2008 94

Table 4.13: New Frontier Media revenue by sector ($m), 2003-2008 98

Table 4.14: Beate Uhse revenue by sector (euro 000), 2003-2008 101

Table 5.15: Worldwide adult entertainment revenues by sector ($m), 2008-2012 114

Table 5.16: Worldwide adult entertainment revenue sector share (% revenue), 2008-2012 116

Table 5.17: Online adult entertainment revenues by region ($m), 2008-2012 117

To order this report:

Media Industry: The Future of Online Adult Entertainment: Surging demand, the rise of free porn and the emergence of new business models

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Nicolas Bombourg

Reportlinker

Email: nbo@reportlinker.com

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