Virtual reality may be making inroads across the board, from marketing, healthcare and retail to tourism, gaming and education, but the technology is set to dominate the adult content market, soaring from $716m £523m) in 2021 to $19bn (£14bn) in 2026; when it will represent 22% of the global digital adult content market value.
That is according to a new Juniper Research study, which also predicts that subscription-based models will be key in enabling adult content platforms to successfully monetise VR content and capitalise on the growth of headset ownership.
Porn sites might be hugely controversial but few would argue against the fact that they have been at the forefront of embracing new technology to secure customer engagement.
The new research, Digital Adult Content: Key Monetisation Models, Emerging Technologies & Market Forecasts 2021-2026, urges mainstream adult content platforms, such as PornHub and XVideos, to form strategic partnerships with specialist VR content providers in order to diversify their libraries of adult content and ensure more consistent revenue streams.
The research found that the global number of users viewing VR adult content via compatible headsets will rise by 2,800% over the next five years, with headset adoption primarily driven by mainstream use cases, such as digital games and media.
It suggests that market stakeholders must leverage existing distribution channels to extend the reach of VR adult content to this growing user base.
The report found that by 2026, 97% of the total VR adult content market will be derived from subscriptions, with distribution channels using this monetisation model to cover the increased costs associated with recording VR content.
It recommends that platforms must ensure adult content libraries are regularly updated, to refresh the user’s value proposition and justify charging a recurring fee. A failure to do so will reduce the value of subscription services and put distribution channels at risk of customer attrition.
Research author Scarlett Woodford noted: “The US will emerge as a key market for VR adult content; accounting for 33% of market spend by 2026. Adult content channels targeting US users must use advanced analytics to monitor viewing habits and trends; tailoring VR-enabled content accordingly.”
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