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The DVD porn industry has made the mistake of thinking that more is better. If you check the total number of units moved, that number probably hasn't shrunk much, but the total number of titles getting put out has gone nutty. Companies use to put out maybe 2 titles a month are now putting out sometimes 2 titles per week.
On the other side, they are getting squeezed by the online porn people converting their content to DVD. With the production costs often long since paid off, the costs to putting the stuff out is next to nothing. If they move 500 units, it is about 75% profitable.
The porn industry has overwhelmed the marketplace with way too much porn, and there aren't enough new customers to buy the DVDs.
Combine that also with great online porn, less and less mom and pop rental shops, torrents, and that many of the big mainstream video chains won't stock adult, and you are pretty much seeing how the industry has eaten itself.
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