OK, at first I wasn't going to share my thoughts, but after thinking about it over night thoughts should be shared.
AEBN is under constant threat from Hotmovies, Yappo, AdultRental and some other sites.
AEBN has enough traffic and doesn't need affiliates.
AEBN pays out a lot of money, 90% of which is probably old recurring.
Before this:
Affiliates had no reason not to try Hotmovies, Yappo, AdultRental. They'll still get their checks from AEBN which is probably >90% recurring from years past.
Affiliates not only get recurring, but they also get a lot of new recurring. Win for affiliate, win for Hotmovies, Yappo, AdultRental. Loss for AEBN.
Personally I know hotmovies has gotten a lot of large AEBN affiliates to switch. I'm sure the other VOD programs could say the same.
Now since putting this into place AEBN is all in the win category:
Affiliate pulls traffic - AEBN keeps recurring money and sleeps on piles of cash.
Affiliate keeps traffic with AEBN - AEBN keeps sending checks, other VOD companies are blocked from that affiliate - AEBN sleeps on a pile of money
AEBN is a tough competitor. I don't think they care about the affiliate as much as they care about the bottom line.
I'm not saying their affiliate reps don't care about affiliates, I'm talking about the management who actually run the company. I'm sure their reps are all reading this thread and wondering how they are going to do their job with this working against them.
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