Virtual reality is on fire… and the kindling is being laid for VR porn…see what we did there?

The virtual reality industry is on track to mark investment flows of $2.8B this year with a total of $8.8B invested since 2012 (SuperData). By 2025 virtual reality sex content is forecast to be a $1 billion dollar business by itself, the third-largest virtual-reality sector only preceded by videogames ($1.4 billion) and NFL content ($1.23 billion), according to Piper Jaffray (via Marketwatch).

We at TheVRpornblog took at look at virtual reality’s impact on adult entertainment and how the democratization of virtual reality production could provide tremendous opportunities for a new generation of creative adult content performers/entrepreneurs.

Important info has been boiled down into an infographic and an expanded article exists below… we hope it’s helpful. Download links and embed code are available below if you are interested in sharing. We’d love to hear your feedback. Thanks!

The VR Porn IndustryInfographic

Perfect bedfellows?

The relationship between adult film and virtual reality will likely be mutually beneficial for the top players — with pornography bolstering the sales and use of headsets, and subscriptions giving the porn industry a much-desired new revenue stream.

It’s the next “mega tech theme” in the U.S., akin to the mobile-phone industry 15 years ago, says Piper analyst Gene Munster.

While some question the investment sustainability of this level of predicted producer volumes, drawing parallels to the video game market crash of 1983 (a concern about the potential for content less than high quality), the data is clearly signaling “everybody on the freakin’ boat”.

“Where would they put ads?” Newsweek asked Ian Paul, Naughty America VR’s CIO at CES, “On the walls?”

The Virtual Reality Boost

Ian Paul explains why virtual reality is so important to Naughty America VR: Facing aggressive competition from free, ad-supported rivals and tubesites, he believes VR can help him win over customers willing to pay a premium for an immersive, engaging experience. It’s more than ads.

According to IBISWorld Market Research, revenue growth among adult and pornographic websites increased at an annualized rate of just 0.3% to $3.3 billion over the five-year period ending in 2015. High piracy rates and free sites such as PornHub have been a thorn in the industry’s underwear. Although it’s not all doom and gloom.

“Generally, I am not a fan of Pornhub,” Ela Darling told International Business Times. “But I do think this could be really good. I think the Pornhub thing can really drive adoption… “People who have never paid for porn at all see value in paying for this porn [VR porn]”

Once You Try VR….

“Google Cardboard is like a gateway drug,” says Todd Gilder, BaDoink’s CEO in an article from TheNextWeb. “Once people see how good this technology is, they immediately want to upgrade to a better headset.”

With the virtual reality boost comes the hope that more people will be willing to directly support creative content producers, both large and independent, through subscriptions or artist support sites like Patreon. The more money that flows directly to the actresses and actors, film crews and creative staff, the more freedom they have to keep doing what they love. With the VR medium as that catalyst, more money may lead to better content, which spers better tech and more artists… and the cycle repeats. At theVRpornblog we’ll argue that we are just beginning to see that now.

A report from Newzoo charted VR buying intention responses from 2,000 participants across several countries including 3,000 in the US. Across all countries 11% of the online population (aged 10-65) intend to buy a VR product in the next six months. Close to a third of those sampled, 32%, have not decided yet.

“Every two months since July 2015 we see between 50-200 percent jumps in join volume, and it’s sustained,” Guilder continues about Badonk’s marketing success. That spike in sales could be attributed to a marketing video released on YouTube showing people watching VR porn in a park in San Francisco.

“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.”

Intimacy Squared: The VR Live Cam Space

The research firm Tractica predicts that once adoption begins to reach a critical mass the industry’s revenue mix will quickly shift from hardware sales to content.

Most studios creating virtual reality sex content are focused on boosting the immersion of pre-recorded videos. Live cams, or one-on-one video chats with a performer, in virtual reality can take that immersion and square it.

“The main draw for live cam is an intimate relationship,” Ela Darling says. “And in VR, I find that the relationships accelerate at a quicker pace. In a regular 2D cam session it might take several sessions to build that chemistry, but in VR, now I’ve got people who after one session feel like they really know me. They were in my bedroom. In VR, you’re not checking your phone or Facebook.”

New Ways for Performers to Monetize their Fanbase

It’s this new and unprecedented intimacy combined with the democratization of content production and the decreasing cost of VR headsets and production equipment that’s so exciting.

While large and medium scale virtual reality porn producers are and will dominate at the outset, we see an exciting revolution in the small and individual studio and performer marketplace.

“This allows porn performers to monetize,” Darling said, adding that the immersive nature of VR porn should command a higher price point than traditional video or cam shows. She said the system, which requires nothing more than the camera, a quad-core computer and a private room, can also be a platform for the niche content that big studios aren’t necessarily doing in VR — and which have substantial fan bases. (3dvrcentral)

People will pay for a personal connection… and VR is able to provide that like almost nothing else.

What’s Next?

If you are new to virtual reality or VR porn, check out our extensive Guide to VR Porn or our growing collection of Free VR Porn links. We’d love to hear your feedback on anything and everything: Contact us.