Quote:
Originally Posted by TheDoc
I'm sorry, Tubes along with free porn, are not any type of problem, and never have been a problem for our business. Actually, without free porn and piracy, we wouldn't be talking today and 99% of the adult porn companies would have never been.
Legal or not, Tube are clearly making money, some have been buying rights to DVD's, burning them, and putting them online. They aren't doing this, chopping videos, paying for bw and servers, having employees, and them not produce any sales.
The fact is, they do produce sales, they are worth more than the TGP's/MGP's ever were. The problem with tubes is we can't all mass market on them. You can't take part in the mass traffic stream, day in and day out.
It's not free porn that's the problem, the problem is the mass majority, including myself, haven't figured out ways to tap into these and many other, new traffic streams effectively.
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Actually, free porn is a major problem.
The problem isn't that they make money, the problem is that they lower margins across the industry. The more you give away for free, the smaller the number of people that are willing to pay.
Tubes count on economies of scale. And the bigger their market share, the smaller they can afford their margins to be. If you lower margins per visitor by 50% on average, but increase traffic by 1000%, it's an easy increase in overall profit.
The problem is that the amount of people in this world is limited. If tube sites lower average spending per person by 50% and take up a large share of the market, it's a win for them but a loss for the industry as a whole.