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January 4, 2007

Adult Content on Internet Growing, Rising and Possibly Breathless, Says Report

The old marketing adage that "Sex Sells" continues to be true today, but it's happening more online than ever before, according to a survey by AVN Media Network, the operator of adult market news site AVN.com.

The AVN Annual Survey of the Adult Industry 2006 asserts that the adult entertainment industry is nearly a $13 billion business in 2006 at $12.922 billion, mostly in the form of adult videos. But the delivery mechanism is changing.

While DVDs and videos of Adult Movies remain the largest sector at more than $3.6 billion, or 28 percent of the adult entertainment market, its also seen a 22 percent decrease in sales and rentals, while Internet sales have grown 14 percent. At the same time, the decline in production costs for DVDs has offset the decline in revenue, the report says.

Internet sales of adult content, which includes images, live-chat and live-streaming video, has now become the second largest adult entertainment segment, with 22 percent of the market or $2.8 billion in sales.

The survey also says that distribution over cable channels showed the strongest growth in 2006 at 34 percent, while novelty toys saw the fastest growth at 15 percent in 2006 to $1.73 billion. What's too small to really be considered is mobile device adult content, which is less than one percent at $38,500,000.

Ah well, nobody really believes that smaller is better it seems.

Posted by MatthewNelson at January 4, 2007 7:53 PM

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