Subject: [NEXTEL-1] Porn will not save 3G - report

From: Marcel <[email-masked]>
Date: Thu, 17 Apr 2003 03:59:15 -0400

4/17/03

Porn will not save 3G - report

Strategy Analytics has  released a new report that suggests wireless
porn will be limited to just
US$1 Billion in 2008. This report from the Strategy Analytics Wireless
Internet Applications
(WIA) Service, notes that adult community services, such as those
recently announced by
AT&T Wireless and Match.com, will ramp up quickly, boosted by the growth
of the camera and
videophone markets. Although skeptical of the revenue potential that
streamed or downloaded
adult services offers to wireless clients, the report further recommends
that carriers must move
swiftly to capitalize on their core messaging strengths by bundling
branded dating applications
into their service portfolios.

Senior Analyst Philip Taylor notes, "We believe the advantages of the
mobile phone as a
personal and discrete device for viewing pornography are overstated. The
value of the mobile
channel to the porn industry will be greater as a CRM-tool than as a
distribution medium."

Speculation as to the potential offered by wireless adult services is
often based on the premise
that fixed Internet pornography providers are raking it in. Strategy
Analytics disputes the often
cited figure for global adult entertainment revenues of US$20B, and
believes this figure is
actually closer to the US$4 billion mark, of which only around US$500
million will be generated
on-line.

David Kerr, Vice President of the Strategy Analytics Global Wireless
Practice, adds, "This is
less than half of the value of the ringtones market in Western Europe in
2002. We believe that,
with so much pornography available for free on the fixed Internet,
demand for adult material will
continue to be largely met by fixed Internet services." Kerr further
states, "Carriers must not
allow themselves to get sidetracked, and must focus on implementing
applications
infrastructure platforms and business models that will open up mobile to
media and
entertainment industries, including adult entertainment, as swiftly as
possible."

http://www.cellular-news.com/story/8707.shtml