We continue yesterday’s interview with the Diva of Mobile Erotica, Julia Dimambro of Cherrysauce. Some estimates claim that already 40% of mobile content (excluding ringtones) are adult in nature, so it’s an important market to understand, even if we don’t plan on joining in ourselves.

Russell: Are there any particular services that you think are actually better suited to consumption by mobile?

I think we will see a few emerge in the coming year and I have my bets down. However, my absolute favourite for mobile erotica in 2006 at the moment is Live and Interactive video chat.

We are in the process of launching this with a company called CC Media and since my days at Private, before it was even technically possible on mobile, I have believed this to be the killer application on mobile.

It’s so perfect for this environment. It’s the ideal blend of the highly successful internet webcam girls and adult text chat – both unbelievably successful commercial models. Add the impulsiveness and mobility of mobile and the highly improved quality of 3g and just imagine the potential. A totally compelling, personal and immersive environment, accessible whenever you feel turned on and guaranteed to have you coming back for more tomorrow.

Russell: Please can you explain how adult controls were greeted by the industry and what actually happened?

I have written about this on quite a few occasions as it really panned out nothing like we expected. The whole discussion of ‘opt-in’ and asking people to put down personal details to view +18 services started around October 2003 (literally a month after I launched Cherrysauce) with planned implementation for spring/summer 2004.

It had the mobile erotica companies shaking in their boots (including me!)! We did honestly believe it was over before it had begun. When something similar was imposed on Premium IVR services, I heard that they only ever had 50,000 people ‘opt-in’, so it more or less killed the industry overnight - to such an extent that they had to rethink. Therefore, when Vodafone announced a similar initiative for adult mobile data services, the future looked pretty grim.

However, what actually happened was the reverse! What we had up until then, was a big gap between what consumers wanted to view and what operators were willing to offer. Before access controls, the ONLY discussion around mobile adult entertainment was how to STOP people accessing this content. The introduction of AV was the first time everyone started talking about what we COULD offer as apposed to COULDN’T.

This has progressed immensely over the last 6 months with Access Controls in place on all UK mobile operators now. The infamous Vodafone ‘No nipple policy’ has been replaced with a ‘behind AC strategy’, which is actually becoming much more appropriate for someone who has gone through the embarrassing situation of admitting he would like to view this type of content and then handing over all his personal details.

The fact that in mobile, consumers will go through this process to view erotic and adult content really highlights the strength of consumer demand to me! We actually saw revenues for our own D2C hardcore channel go UP after automatic barring and ‘opt-in’ was launched, which we were definitely NOT expecting! The ‘opt-in lists’ are a great idea and an example of the industry coming together to create a better and more personalised end-user experience. They should have just started them earlier!

A year or so down the line after discussions and planning started for AC, I think the UK has really set the bench-mark of how to deliver adult content and service on mobile responsibly and effectively. They have shown how financial gain is possible without a negative effect on the brand perception.

A good job all round I think.

Russell: Why do you think it’s ended up as being good for the industry? Is it that the industry was growing so quickly anyway that any backlash by potential users was simply not noticed?

It was so good for the industry, because it really opened the market up in a very controlled and monitored way and allowed end-users access to content that we KNEW they wanted.

It also means you will see that companies like Cherrysauce and some of our respected counterparts, who have a long-term view on this industry sector and WANT to responsibly present their products, will gain the benefits of doing so in this industry sector.

Companies who don’t, won’t survive, due to the wonderful policing, regulations and control that mobile has developed. As a result we will have a totally regulated, self-rated and responsible erotic AND adult mobile industry in a short space of time. We are already starting to see this successful model approached by other territories.

Based on some figures I heard recently about the ‘AV drop-off’ (i.e. upon reaching the point where you have to identify yourself and prove your age), around 75% of users don’t finish Age Verifying for different reasons. Please keep in mind this is not a confirmed figure, however, if it is anywhere near true, I feel that much of this is based on the process to AV still being so cumbersome and awkward in mobile.

Filling out multiple mobile screens with credit card and personal details is just not user-friendly. If the usability is improved I believe there are very positive ways to move this ‘bottleneck’ to our advantage. To age verify with any of the current systems I have heard of, users must credit a pre-paid account with a minimal amount using a valid credit card. Therefore by default they have already purchased via credit card as apposed to PSMS (so costing the Content Provider 11-12% max for adult charges as apposed to the 20-30% of end-user tariff that PSMS requires). That saving can be put back into the business enticing users with freebies and discounts and offer to Age Verify in the first place.

Russell: When’s your busiest time of day?

Mainly as you would assume… traffic peaks between 11pm and 3am. However, we tend to get a rise between 6 and 9am as well. Commuter traffic or waking up ‘happy’?

Russell: Give me a couple of predictions for the adult industry for 2006. And for mobile, more generally

For erotica and adult mobile entertainment (Cherrysauce only focuses on a combination of the two), I would say:

Adult will boom in the D2C environment during 2006.

Billing options will expand away from PSMS – the extra margin saved will be used to attract customers to alternative billing methods

Content Providers and Media owners will raise their position in the value chain influenced by the 2 factors above.

Age Verification will take off globally.

Adult Mobile will ‘officially’ launch in America

Operator Portals will DEFINITELY open up to off portal

Straight content licensing (specifically in adult) will only be a model used by the big brands

Cherrysauce will still be 100% owned by the end of 2006

I will have aged another 10 years in the space of 12 months, but with a smile on my face.

Thank you, Julia, that was most informative. Good luck with your plans in 2006.

By the way, to our anonymous correspondent asking for more details, “D2C” isn’t some kind of arcane sexual practice, but a marketing term meaning Direct to Consumer - as opposed to via a third party. Well, I think so anyway.