I think that Hotmovies summarize the shift in membership business-model very elloquently in their "Memo" to all webmasters that you will have seen in the adult print media.
An excerpt:
"We have to be blunt. It's time to wake up!
Most of your customers do NOT want to join membership websites.
While they can preview text and photos that tease them into joining, most sign-ups only stay for a month or two and then cancel.
Some customers forget to cancel so the membership site earns a month or two of additional revenue that may bring in another $20-$40 per sign up. This model - requiring a miniumum number of sign-ups each month just to break even - is fading. The proof in is how many affiliate programs no longer advertise or remain in business.
Each month, more and more new companies are jumping onto the VOD and pay-per-minute Billing Bandwagon. This is a welcome sign since it grows the entire market. Every day, it makes thousands of additional Internet users aware of micro billing and the revolutionary new way to view adult content online."
