Market to be worth $1.5bn by 2012

Global revenues from mobile adult video chat are set to climax at $1.5bn within the next five years, according to a Juniper Research report.

The average monthly spend for this increasingly popular specialist market is up to 20 times higher than for other types of adult services.

"Video chat services are showing remarkable growth in terms of customer retention and average usage, with users regularly returning to chat to the same hostess and developing a virtual relationship with her," said report author Dr Windsor Holden.

"With 3G penetration expected to exceed 25 per cent in many developed markets by the end of 2008, there is a significant opportunity for service providers to launch and monetise live chat services."

Video chat will account for a third of total mobile adult service revenues by 2012, according to Juniper Research, compared to eight per cent last year.

The largest regional market for mobile adult services will continue to be Western Europe, raking in revenues of $453m by 2012.

The report recommended that subscription services at a reduced price for a trial period would boost revenues still further.