According to Juniper Research, the smartphone boom has indirectly generated substantial revenue increases in the mobile adult industry. Carriers have been reluctant to offer adult content on portal, but direct to customer (D2C) sites have benefited from increasing data demands from customers worldwide.
Regulations prohibiting access to adult content in a number of Asian markets will have a negative impact on revenue, although users will continue to grow in Japan and Hong Kong. Much of the potential revenue increases will be driven by new subscribers in the US market, considering the fall in traffic onto portal adult content in much of Europe.
Other challenges that could restrict growth are mobile providers focussing on traffic generation and not providing high niche content, and not achieving customer retention, simply gaining traffic increases from casual users.
