Fortune Report Looks at VR Porn

Fortune Report Looks at VR Porn

LOS ANGELES — As porn and Virtual Reality continue their collision, mainstream media is taking notice.

Calling porn “Virtual Reality’s dirty little secret,” Fortune author John Gaudiosi recently outlined analysts belief that in addition to mainstream movies and video games, adult entertainment will motivate many early adopters of VR technology — a not too-secret secret that will benefit major stakeholders, including Facebook-owned Oculus, Google, Microsoft and more.

Gaudiosi cited Piper Jaffray research analyst Travis Jakel, and his prediction that adult entertainment will be the number three driver of VR content, growing into a $1 billion industry by 2020.

Jakel’s figures show that three percent of VR users will pay $35 for adult content in 2016. This amount is typical of a monthly membership at a higher-end adult paysite — and accounts for $13 million worth of the projected total VR market in 2016.

Adult industry insiders will note that the three percent figure seems extraordinarily low, while the single shot $35 payment could indicate analysts expectations that early adult VR content offers may not match many consumers’ expectations, and thus not induce repeat purchases.

A further note on the three percent figure is that it is the number of users expected to pay for their porn — not the number of users expected to view VR porn — with the adult entertainment industry likely to continue its headlong rush towards giving away all of its content for free, skewing such VR usage stats.

For comparison, the same research predicts that five percent of VR users will spend an average of $56.66 on games (the top slot, at $35 million of the market), while 15 percent of VR users will spend an average of $8.19 on movies (the second place position with $15 million of the market).

Tractica VR analyst Craig Foster believes that the combined revenue for head-mounted displays (HMDs), VR accessories and content will jump from $108.8 million in 2014 to $21.8 billion by 2020, representing an annual global growth of 142 percent, with content quickly coming to the fore.

“As adoption begins to reach a critical mass, the industry’s revenue mix will quickly shift from hardware sales to content,” Foster says. “Content sales will represent more than one-third of total VR revenue by 2017, and will quickly grow to nearly two-thirds of all VR revenue by 2020.”

Piper Jaffray senior research analyst Gene Munster currently estimates porn to be a $25 billion industry with a primarily male demographic that is keen on new technology, and which provides a reliable test audience for product development, ensuring at least an awkward nod to the genre’s value.

“Whenever there’s a shift in content conception, it’s typically adult entertainment that’s the first monetizable app,” Munster says. “History repeats itself and we’ve seen adult entertainment drive sales of VHS, DVD, Blu-ray, high definition, mobile, and online video over the years.”

Many analysts and VR promoters expect it to become the defining visual technology, especially for the younger generations of consumers, with some forward looking adult producers already embracing this “shift in content conception.”

“I see it through a generational lens,” Todd Glider, CEO of BaDoink, an early adopter of VR porn says. “VR porn will not have a pronounced effect on the demographic born before 1980. However, for the generations born after, the ones that reach adulthood in a world where 24/7 access to adult content is just a mouse-click away, that’s the audience for VR porn, and it will be huge.”

As for the broader business perspective, recent analysis by XBIZ Research reveals that more than half of adult entertainment industry insiders believe that Virtual Reality will revolutionize porn; with the biggest segments of the market predicted to be live cams (41 percent), 3D rendered virtual worlds (30 percent), and recorded video content (29 percent).

Related:  

Copyright © 2025 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 News

UPDATED: Supreme Court Rules Against Adult Industry in Pivotal Texas AV Case

The U.S. Supreme Court on Friday issued its decision in Free Speech Coalition v. Paxton, striking a blow against the online adult industry by ruling in support of Texas’ controversial age verification law, HB 1181.

North Carolina Passes Extreme Bill Targeting Adult Sites

The North Carolina state legislature this week ratified a bill that would impose new regulations that industry observers have warned could push adult websites and platforms to ban most adult creators and content.

Supreme Court Ruling Due Friday in FSC v. Paxton AV Case

The U.S. Supreme Court will rule on Friday in Free Speech Coalition v. Paxton, the adult industry trade association's challenge to Texas’ controversial age verification law, HB 1181.

Ofcom: More Porn Providers Commit to Age Assurance Measures

A number of adult content providers operating in the U.K. have confirmed that they plan to introduce age checks in compliance with the Online Safety Act by the July 25 deadline, according to U.K. media regulator Ofcom.

Aylo Says It Will Comply With UK Age Assurance Requirements

Tech and media company Aylo, which owns various adult properties including Pornhub, YouPorn and Redtube, plans to introduce age assurance methods in the United Kingdom that satisfy government rules under the Online Safety Act, the company has announced.

Kyrgyzstan Parliament Approves Measure Outlawing Internet Porn

The Supreme Council of Kyrgyzstan on Wednesday passed legislation outlawing online adult content in the country.

Trial Set for Lawsuit by U Wisconsin Professor Fired Over Adult Content

A trial date of June 22, 2026, has been set for the civil lawsuit filed by veteran communications professor Joe Gow against the University of Wisconsin board of regents, which fired him for creating and appearing in adult content.

New UK Task Force Meets to Target Adult Content

The architect of an influential report that recommended banning adult content deemed “degrading, violent and misogynistic” has convened an “Independent Pornography Review task force” aimed at translating that report’s findings into action in the U.K.

11:11 Creations Launches Affiliate Program

11:11 Creations principal Alicia Silver has launched 11:11 Cash for creators and affiliates.

Pineapple Support, Pornhub to Host 'Self Love' Support Group

Pineapple Support and Pornhub are hosting a free online support group for performers to develop self-love.

Show More