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December 27, 2005

2006 Forecast - Portable Videos

Filed under: General — Dr Bill @ 9:52 am

In 2005, a handful of US companies began delivering porn videos to portable devices such as iPod, Pocket PC, PSP, and cellular phones. We should expect continued growth in this area during 2006. In fact, 2006 is going to be “the year” for portable video porn, as well as, the last year.

Pocket PC PSP iPod Cellular

The concept is a novelty that will quickly pass, once consumers realize it’s totally impractical. If we remind ourselves that porn is typically used for sexual stimulation, it doesn’t seem logical that consumers will have any use for videos outside the privacy of their home, hotel room, or RV. Travelers are not going to watch porn videos on busses, trains, or planes. College students won’t be popping boners during boring lectures. And couples will have difficulty finding any sexual enhancement from a three inch display on the bed stand. Perhaps a few guys will find porn videos on their iPod helpful during a quick wank in a public bathroom stall, but those numbers do not constitute a market. I’m sure lots of people (mostly straight guys) will want to show off to their friends they have porn on their phone. A novelty that’s good for a few laughs before it becomes old news.

Mainstream markets see huge ad dollars in delivering free content preceded by an advertisement. This is a branding strategy that should do well in those markets. In fact, surveys have revealed that portable device consumers will watch an advertisement in return for free content. Unfortunately, for the adult industry, the most accepting demographic for ad-supported content is teenagers. On top of that, branding strategies do not work well for the porn industry, as we tend to profit mostly from the impulse buy. Factor in the issues with age verification, and ad supported adult content delivery looses its appeal.

Will portable porn have a life after 2006? I don’t see video content surviving as a direct revenue source. In fact, I don’t see full-length VOD surviving at all. Most likely, videos will find limited appeal as a free tack-on, offered by traditional premium site delivery systems, or as promotional clips by video producers. Adult wallpaper and ring tones will do well with straight men, but will have little appeal with the gay and straight woman consumer.

The real appeal, in my opinion, will be with interactive adult themed offerings, or soft porn with some sort of novelty twist, such as naughty humor. I’ll stop short of suggesting what those offerings might look like. I’ve read about some interesting interactive services being tried in Europe. However, 2257 might prohibit, in the US, what is being done in other countries right now - depending on how the law, and its regulations, pan out in the courts.

While companies, like Juniper Research, are spouting some attractive projections, I don’t see them getting specific about the types of adult content slated to rake in billions by the end of the decade. In my opinion, companies are dashing for an early market presence by delivering what is already available to them. I’d like to think these companies are also working on mobile products that will stand the test of time. My crystal ball is in the shop, so we’ll just have to wait and see how it all shakes out.


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