CHATSWORTH, Calif.–(BUSINESS WIRE)–Consumers are watching more
adult content on cable and pay-per-view, buying more sex toys and
moving online, according to AVN Media Network.
Dynamic shifts have occurred in key segments of the market, which
AVN estimates at $12.922 billion in the United States, or just under
$13 billion in 2006. Adult Movies remain the largest sector at more
than $3.6 billion or 28 percent of the adult entertainment market.
Falling prices for adult DVDs caused a drop of 15 percent in revenue in
that segment, but unit sales were up, indicating a continuing market
for adult films.
Distribution over cable channels showed the strongest growth in 2006
at 34 percent. AVN estimates the Adult Cable/PayPerView segment (home
and hotel TV movies) now represents $1.75 billion in revenue, annually.
Internet sales of adult content, which includes images, live-chat
and live-streaming video, was also a strong growth area. In fact, AVN
reports that in 2006, Internet Sales became the second largest adult
entertainment segment, with 22 percent of the market or $2.8 billion in
sales.
The adult customer today has more delivery options,€ said Paul
Fishbein, president, AVN Media Network. €œThey can watch content on the
Internet, a DVD or order Pay-Per-View on cable. The market is robust
and widening as adult entertainment is embraced more and more by the
mainstream consumer.
AVN found Sex Toys or Novelties,†was the second fastest growing
segment of the adult market, growing 15 percent in 2006 to $1.73
billion. Exotic Dance Clubs held their own, generating $2 billion in
revenue in 2006. Adult Magazines, once a market staple, now represents
only 7.4 percent of revenue. Mobile delivered adult content, once
touted as the hot new growth area, is barely on the chart, due to a
lagging infrastructure in the United States, compared to foreign
markets.
2006 % of Retail Sales
Video Sales & Rentals 28.0% $ 3,622,000,000
Magazine 7.4% $ 950,000,000
Cable/PPV (TV) 13.5% $ 1,745,000,000
Internet 22.0% $ 2,841,000,000
Exotic Dance Clubs 15.5% $ 2,000,000,000
Mobile 0.3% $ 39,000,000
Novelties 13.3% $ 1,725,000,000
Total 100% $ 12,922,000,000
Internet sales were up more than $300 million or nearly 14 percent
as more studios and distributors offered adult films and other adult
content online. Adult Cable/Pay-Per-View sales increased more than $400
million to claim 13.5 percent of the market.
The Internet has become a more user-friendly environment and it
allows the consumer to have a more intimate setting than the middle of
the living room, said Fishbein. €œConsumers who want to purchase or
view adult images can do it one-on-one. Again, its the case of the
adult entertainment market being first to embrace new technology.
The Adult Novelty market jumped $225 million in 2006, including
sales through traditional retail, Internet channels and
direct-to-consumer outlets.
€œU.S. consumers, especially women, appear to be showing more
interest in sex tech. Devices that enhance the experience are one of
the hot growth areas, said Fishbein.