opinion

Future of Online Adult: 2

In part one, we began our look at how technology is shaping the future online adult. In this conclusion, we'll look at changing market needs and more:

Indeed, the example of the music industry is lighting the way for future strategies in adult distribution and sales. With most of the middlemen cut out of the equation, this will put the studios in direct touch with their customers and force a whole new relationship.

"Studios will have to develop a direct relationship with the customer now," Janarthanan insists. "Before, they had no relationship because the customer dealt with the retail store. Now the product will go directly from the studio to the customer, so studios will have to spend more time marketing to the wishes of the customer. I see this happening already online, where customers preorder the next DVD release. In adult, the guy who will make the most money is the one who has the closest relationship with the customer. Either the studios have to change, or the guy in the middle has to change and adapt to what's happening in the market."

Says Daris: "As the adult online distribution industry gets older, we become more commercial. So the adult distributors will start to go after the mainstream folks, and the mainstream distributors will start to sell the adult stuff. That's because you won't even need to have a computer because you'll be able to use your TiVo to download. It will become so easy to download that the marketing side will look more polished."

Changing Market Needs
The concentration on new marketing strategies is even more intense in the mobile field, with almost limitless potential. McAbian says Waat Media is constantly adjusting its approach to the ever-changing market needs and distribution platforms in mobile.

It is this breakthrough in downloading that may push the cellphone to real prominence in the distribution of adult content, especially when interactivity is improved.

"There are three things that need to happen to create fertile ground for mobile," McAbian cautions. "One, the networks need to be up to speed. We're kind of over that hump now, since most networks in Europe and a couple here in the U.S. are very robust. The next thing that needs to happen is for handsets to have a lot more functionality. The third thing is just educating the customer."

By 2010, mobile users will be able to download an entire movie in just 30 seconds. Joone of Digital Playground believes this will vastly increase the role of the cellphone in adult distribution.

Mobile already boasts of the most creative and customer-friendly billing strategies. Next up, mobile companies will go into recurring monthly charges for adult TV, which already accounts for several of the 100 mobile TV channels currently running.

"There's also a big difference in operator billing capabilities," McAbian adds. "Some customers have accounts and others are prepaid. This requires different billing strategies."

These new strategies also apply to online sales, with very positive signs coming in the wake of new technologies.

"We're seeing it open up more," Daris says. "When I started to look for merchant accounts six or seven years ago, everyone said, 'Ugh, adult! Get away from me.' CCBill stayed around, and a couple of other third-party billing companies. Now we're starting to see methods where adult can get a mainstream merchant account. This year it's been a lot easier to get merchant accounts than any other prior year that I've been doing this."

So it seems that online billing will continue to rely on credit card companies, especially now that the major carriers with powerful infrastructures like Visa and MasterCard are getting back on board. But there's a chance that the European-style telco billing system will make inroads in the U.S. in the not too distant future.

This all points to a rosy future for those companies who prepare for the great changes. In fact, the only thing that's holding back those changes is the speed of the Internet in America.

"Compared to most of the world," Janarthanan points out, "the speed of the U.S. Internet connection is slow, especially compared to the Asian countries. So until that changes, we really won't have true video-on-demand in the U.S. And to have good looking high-definition video, you still have to use a PC to download it, because of the low Internet connection. But once that changes, you'll be able to use your television to stream movies directly instead of waiting for it to get downloaded. When ease-of-use is achieved, that's when you see change."

And anybody who doesn't change with the change, will fall by the wayside, Joone says.

"You have to please the consumer's appetite before somebody else does," he adds. "It's sort of like the Sony Walkman. They were kings, and suddenly Apple came around with iPod. The second you get comfortable and think you're king of the hill, you know something's wrong."

Copyright © 2024 Adnet Media. All Rights Reserved. XBIZ is a trademark of Adnet Media.
Reproduction in whole or in part in any form or medium without express written permission is prohibited.

More Articles

opinion

Best Practices for Payment Gateway Security

Securing digital payment transactions is critical for all businesses, but especially those in high-risk industries. Payment gateways are a core component of the digital payment ecosystem, and therefore must follow best practices to keep customer data safe.

Jonathan Corona ·
opinion

Ready for New Visa Acquirer Changes?

Next spring, Visa will roll out the U.S. version of its new Visa Acquirer Monitoring Program (VAMP), which goes into effect April 1, 2025. This follows Visa Europe, which rolled out VAMP back in June. VAMP charts a new path for acquirers to manage fraud and chargeback ratios.

Cathy Beardsley ·
opinion

How to Halt Hackers as Fraud Attacks Rise

For hackers, it’s often a game of trial and error. Bad actors will perform enumeration and account testing, repeating the same test on a system to look for vulnerabilities — and if you are not equipped with the proper tools, your merchant account could be the next target.

Cathy Beardsley ·
profile

VerifyMy Seeks to Provide Frictionless Online Safety, Compliance Solutions

Before founding VerifyMy, Ryan Shaw was simply looking for an age verification solution for his previous business. The ones he found, however, were too expensive, too difficult to integrate with, or failed to take into account the needs of either the businesses implementing them or the end users who would be required to interact with them.

Alejandro Freixes ·
opinion

How Adult Website Operators Can Cash in on the 'Interchange' Class Action

The Payment Card Interchange Fee Settlement resulted from a landmark antitrust lawsuit involving Visa, Mastercard and several major banks. The case centered around the interchange fees charged to merchants for processing credit and debit card transactions. These fees are set by card networks and are paid by merchants to the banks that issue the cards.

Jonathan Corona ·
opinion

It's Time to Rock the Vote and Make Your Voice Heard

When I worked to defeat California’s Proposition 60 in 2016, our opposition campaign was outspent nearly 10 to 1. Nevertheless, our community came together and garnered enough support and awareness to defeat that harmful, misguided piece of proposed legislation — by more than a million votes.

Siouxsie Q ·
opinion

Staying Compliant to Avoid the Takedown Shakedown

Dealing with complaints is an everyday part of doing business — and a crucial one, since not dealing with them properly can haunt your business in multiple ways. Card brand regulations require every merchant doing business online to have in place a complaint process for reporting content that may be illegal or that violates the card brand rules.

Cathy Beardsley ·
profile

WIA Profile: Patricia Ucros

Born in Bogota, Colombia, Ucros graduated from college with a degree in education. She spent three years teaching third grade, which she enjoyed a lot, before heeding her father’s advice and moving to South Florida.

Women In Adult ·
opinion

Creating Payment Redundancies to Maximize Payout Uptime

During the global CrowdStrike outage that took place toward the end of July, a flawed software update brought air travel and electronic commerce to a grinding halt worldwide. This dramatically underscores the importance of having a backup plan in place for critical infrastructure.

Jonathan Corona ·
opinion

The Need for Minimal Friction in Age Verification Technology

In the adult sector, robust age assurance, comprised of age verification and age estimation methods, is critical to ensuring legal compliance with ever-evolving regulations, safeguarding minors from inappropriate content and protecting the privacy of adults wishing to view adult content.

Gavin Worrall ·
Show More