Quote:
Originally Posted by RawAlex
it is the problem of theoretical losses versus real losses. Would shutting down one torrent site up playboy's bottom line by 20k a month? I don't think they would know. That is soft dollars.
If they lost a 20k sponsor, trust me, they would know. That is hard money no longer going to the bank.
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What you call theoretical losses would more accurately be called unmeasurable losses and the difference is not merely semantics.
We have no idea whether torrent sites cost online porn 10 cents a year or 10 million dollars a year. We do not know what share of that loss is borne by specific sponsors. But there is plenty of evidence from related industries to suggest that the losses are far more likely to be large than insignificant and one aspect of professional business management is about control.
It is therefore absolutely not good business sense to assist in any shape or form, entities you believe are likely to be costing you significant revenue, simply because you cannot measure that loss.
A relevant example would be the American Express decision to pull out of processing for adult sites. They would have had firm figures as to the direct cost of that decision, but only estimates of its positive impact. The possibility exists that their estimates might have been wrong, but if you understand your business, you make such estimates based on whatever information is available and on your own experience. You do not ignore the problem, just because all the numbers are not accurately quantifiable.