Whether you agree with it or not, the importance of adult content simply can't be ignored. Just ask Sony, whose refusal to let its Betamax video-cassette be used by the adult entertainment industry is seen as the largest contributory factor to their loss of that particular format war. As for the TV content industry, the old adage that 'wherever adult content goes, TV content will follow' still rings true. From VHS to VCD, from DVD to downloads; now VoD and mobile offer lucrative new opportunities to service the adult market.

And if experiences in Europe are anything to go by, strong regulation of mobile erotica has actually been good for business.

"Access controls, have been a huge a success here in Europe, with the UK leading the pack," explains Julia Dimambro, the Spain-based Managing Director of Cherrysauce, voted 'Best Adult Services Company 2006' in the Mobile Entertainment Awards.

"Most importantly, access controls protect minors and anyone not wanting to see this type of content. Secondly, if positioned and implemented correctly by the telco's, it can actually give a positive brand perception. Adult entertainment will happen on mobile whatever, especially when we get to the stage of simply seeing a version of the Internet on our mobiles. The telco's can turn this to their advantage and say that they are taking all measures to ensure that actually, for the first time in adult entertainment history, we can actually protect consumers and minors with robust age verification systems."

Hong Kong based General Manager of Playboy TV Asia and Japan Lanny Huang agrees that working with a reputable telco is important when it comes to both protecting the consumer and content.

"On mobile we launched with Hutchison in Hong Kong two years ago – we are working with credible telcos as content management and its protection (DRM) are also concerns. And at Playboy we take over-18 age verification very seriously, not only with regard to the viewer but also with regard to the age of the models who appear in Playboy content."

In terms of content, Huang says for six months Playboy's mobile offering was just pictures and short clips, moving into shortform, more daring content. Also with Hutchison in Australia, Huang says business is going well on the mobile side, charging on per-clip, per-minute, and monthly subscription bases.

With a background in interactive advertising for J Walter Thompson, Dimambro founded Cherrysauce back in September 2003. The company currently delivers erotic and adult entertainment via distribution partnerships in over 30 territories worldwide as well as offering both soft glamour and adult services direct to consumer.

Dimambro says the company started off by licensing content from other media and then reformatting it for mobile. But, she says, it became pretty apparent quite quickly that this wasn't really offering the consumer the best value.

"We firmly believe that mobile is a new media channel and as such, consumers will use it and interact with it a) differently and b) for different reasons. Therefore, we think that new content and services should be designed for mobile. The majority of what we are seeing at present is simply the re-hash of other content and concepts that have worked well in other channels.

"Today, we work with a selection of producers who produce content specific for mobile. We have seen a huge difference in the channels where we sell it. There is a big difference in a 1-minute video clip, which has been sourced from a glamour babe DVD (which means the 1- minute is taken completely out of context) or a 1-minute video clip that has been shot by those who understand that we have to offer value for money inside of 1 minute and for example, not showing anymore than a cute girl in a bikini. The subsequent quality of the final product is considerable."

The biggest single barrier in Asian markets, it would appear, is the perception of adult content. As Dimambro explains, her visit to speak at MEM Asia in Singapore was something of a learning experience.

"Normally, when I'm speaking about Mobile Erotica, I get a lot of people wanting to talk to me after the presentation. Adult is one of the those topics that everyone is interested in, but not quite sure how to implement it into their own business, so 'post presentation' is always really busy for me.

"However, in Singapore I had absolutely no-one! Not one card or one person wanted to speak to me after the presentation. This was a first for me, especially as the presentation itself had been well attended. I was convinced I had given a bad presentation. By mid-afternoon I decided to change my 'sales angle'. Instead of presenting ourselves as an 'adult' mobile company, I simply presented our services as a babe/glamour offering. I immediately got two potential distribution deals." With TV distribution via Tohokushinsha Film Corporation in Japan, CIMAX Spice TV in South Korea, NowTV in Hong Kong, on Taiwan's Hung Kai, and in Australia and New Zealand, Playboy TV's Lanny Huang says the less accessible Asian markets are beginning to review the situation. "Governments see illegal pirated content on their streets, and realize the issue needs to be addressed such as in Thailand. And hotel distribution is a whole different matter, as in terms of VOD it's the safest choice," says Huang, adding that PlayboyTV's distribution in hotels exceeds beyond the six Asian countries in which it has TV carriage.

Huang says Mobile and IPTV will be the preferred platforms of choice for Playboy TV. "IPTV would be more of a VOD offering, in possibly Malaysia, Singapore, Thailand on a premium tier, subject to very strict licensing, or branded blocks late at night. Many consumers say that if they tried adult content they would try Playboy." But she says flexibility and patience are key when negotiating over the issue of adult content. "A lot of IPTV and mobile consumers are in fact women, so we're producing documentaries for shared viewing. And we're talking about the possibility of a non-nudity channel in some markets."

The power of the brand and the fact that many aspire to Hugh Hefner's Playboy Mansion lifestyle, are also proving valuable revenue streams. Having opened the Playboy Palms in Las Vegas, Huang says Playboy is definitely looking at casino or club opportunities in Macau and other territories with casinos. "It's an iconic logo – there are girls in Shanghai and Beijing wearing the Playboy logo so we're exploring fashion and lifestyle products and merchandising opportunities." In July/August 2007 Huang says to expect Playboy HDTV launching in Hong Kong, which she describes as "beautiful girls in stunning locations." And Playboy is also exploring a lifestyle channel for Asia, within 2 years' time."

Adds Cherrysauce's Dimambro, "We have just started some distribution in Asia. It's an interesting territory because what is deemed as acceptable seems to vary so much from one country to another. Luckily we have a fantastic range of content so we can fulfill most requirements."

And her advice for those aspiring to offer adult entertainment? "Based on what we have seen, the 'approach' should be taking responsibility to protect the mobile community. Adult on mobile (off-portal) will happen whatever, so taking the angle of implementing robust systems to protect, yet still being able to offer access to the demand is one way. The other approach is choice. One key factor of sexual desire and erotic tastes is that it seems to be different for just about everyone. Choice is the xfactor of mobile erotica and this simply hasn't been correctly implemented in other territories (and the revenues reflect this). If the choice and the subsequent navigation is effective, the content provider can offer anything from very soft, to more explicit and gain positive results."

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