Naughty face time to mitigate losses to free web video streaming sites.
A report by Juniper Research projects the overall worth of mobile adult to be $2.8 billion by 2015, up from $1.7 billion in 2009.
It concludes that video chat service providers have reported a combination of high retention rates and very high ARPU. It also notes the transition from pay-per-download to subscription models as D2C adult sites win traffic with niche content.
However, the rise in smartphone and mobile web adoption has led to an upsurge in traffic to leading adult websites, and even though much of it not optimised for mobile, it is still cannibalising established portal content.