May 4, 2004
In Europe, Cellphone Profits Go Up as Clothes Come Off
Jennifer L. Schenker for the IHT reports on executives from some of the world's largest telecommunications companies coming to Amsterdam late last month and hobnobbing with sex shop owners, publishers of pornographic images and producers of hard-core videos.
"Until recently, risqué mobile phone services have been limited. But now that third-generation, high-speed networks and cellphones that offer video are on the European market, carriers are looking to make money by a proven method: pornography.
Gartner, the industry research company, estimates that sexual content over cellphones will generate $1.5 billion in Western Europe next year, or about 5.1 percent of the total mobile data market.
Some of the players so far:
-- The Vodafone Group has introduced what it calls "risqué" content through its Vodafone Live portal in 10 of the 16 markets where the portal is available.
-- Netcollex, a British company that offers both soft and hard pornography over cellphones, said that in 12 months it had signed up 67,000 customers, who pay $2.65 to see one of a selection of short video clips, plus transmission charges.
Ready to play:
Virgin Mobile with 5.5 million customers in Britain, the US and Australia has created a position called "head of adult services,". But the company will not introduce these services until safeguards are in place.
Words for the wise:
"It is harder to supervise such a personal device than it is to control what little Johnny is doing on a computer." - Richard Brown, group public affairs director for MM02.
For more on the porn industry and mobile phones, check out this category in Picturephoning.com
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