Worldwide revenues from adult online video chat services are expected to reach US$1.5bn by 2012, by which stage video chat will comprise 33pc of mobile adult services revenues.
According to Juniper Research, while adoption of such services is comparatively low by the standard of mobile adult services, the average monthly spend on this niche market is typically 10 to 20 times higher than for other adult services.
Western Europe will remain the largest regional market for mobile adult service throughout the period covered by the report, with revenues rising from US$78m in 2007 to US$453m by 2012.
“Those video chat services already deployed are showing quite remarkable levels, both in terms of customer retention and average usage, with users regularly returning to chat to the same hostess and developing a virtual relationship with her,” said Dr Windsor Holden, the author of the report.
“With 3G penetration expected to exceed 25pc in many developed markets by the end of 2008, there is a significant opportunity for service providers to launch and monetise live chat services,” Dr Holden added.
By John Kennedy