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Originally Posted by georgiaasphalt
Really? Show me a successful site that only has 20 videos available at any given moment that doesn't give you access to bonus sites. Believe me, I'd love to get away with that! You may be able to start with 20 videos, but you better plan on weekly updates at a minimum to keep people around.
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I was going to mention weekly updates but forgot. Sure, you're absolutely right, at least weekly updates are a must if you're going to stay around and not get burned within 2-3 months.
What I was going to say is that even 20 good videos is enough for starter, even today with all of them huge megasites around and even worse tubes. "Spoiled consumers" are not going to be a problem for you starting with your new site. They never will be a problem, actually, except maybe for sites that specifically market
amount of content they have. But for sites that market specific
types of content, there's no difference in sales between 20 vids+weekly updates or 2000vids + weekly updates sites. 20 vids sites would often sell even better, if they're new production with fresh stuff.
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Remember when Napster got shut down? Everyone was whining and complaining because they had gotten spoiled by having unlimited and free access to all the music they wanted. Yeah, that is more about piracy. I'm just using that as an example of a spoiled consumer base. And that's what we have with porn. Not only are we selling content for pennies, we're giving away sooooooooo much of it just trying to get people to become a member. Now there's this HUGE pile of FREE porn out there and it just keeps getting bigger and bigger (yet another issue).
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We're not selling it for pennies. $30-40 is not that cheap at all. You can regret you're not getting $5 you want for every video you sell, and even more so when you have huge 2000+ content library you're selling for the same $30-40, but again, be reasonable. Customers do not have unlimited budgets, they're not going to pay you $10K for your entire collection. Even $100-200 will be a tough nut to shell.
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Exactly, why not make premium content an extra cost? Instead sites continue to put more and more and more content, add more features, give access to more bonus sites, all while keeping the monthly membership the same. Oh wait....maybe because the porn customer is completely spoiled and if the price goes up $5 a month they quit 
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Well that's normal, as time goes by customers want more for the same amount of money. Average computer is still worth about $1000, but modern computers are 100x more powerful than those that were sold 20 years ago. Does that mean manufactures should charge $100K for them? I do not think so.
Loss is the keyword. They gained online, but not enough to make up for their losses elsewhere. Why haven't they made enough from their online sales? Obviously because their business model is flawed. If they offered their entire library plus updates for $20-30/month, and opened up an affiliate program, they'd have 10 million members in no time - and that's 2 billion of found money in just one year. And they still have box office, DVD/CD sales, TV rights etc etc. Demand is there, they just do not see it, or keep dreaming about charging customers with crazy amount of money they never going to pay.