Sex sells, but in these times of financial crisis, it sells considerably less. The global economic downturn has had a broad impact and now has struck the mobile porn industry as well. A report by Juniper Research predicts that the adult mobile content market will grow 3.5 per cent less than previously expected.

X-rated content is often perceived as a huge revenue generator due to the success of its online cousin, however usage levels have fallen, bringing the overall revenue forecast to $2.2 billion this year, says Juniper.

The research found that despite there being a ‘comparatively small number of consumers’ utilising adult mobile services, these subscribers have a higher spend level than your average mobile user– with some splashing out several hundred dollars each year on video chats.

“While in some instances usage levels are marginally lower than we expected, we are actually seeing significantly higher spend per user on video chat and on some subscription-based services,” said Dr Windsor Holden, author of the report.

Currently, there is a plethora of X-rated content available on mobile phones ranging from wallpapers and screensavers to videos and SMS services. But Juniper predicts that interactive video chat services will become the largest contributors of the mobile adult content market over the next five years, passing the $1 billion mark by 2011.

The UK-based firm also noted that adult content usage on mobile phones varies regionally. For instance, Indonesia and Switzerland have recently tightened the laws governing access to adult content, while operators in the US still remain wary and often distance themselves from offering such content on their portals.

Meanwhile, over in Europe and parts of Latin America, adult content on operator portals, managed by third-parties, is becoming far more prevalent, the report observed.