That is correct.
It has been covered in the trades a bit the past few months. In a few years, those who do not have their own clients and traffic network will find themselves being forced out by technology. The cost of doing business is going to continue to rise as new technology in delivery systems arise.
This is why I have had to revise my 2010 plans and expand my own traffic network.
There are a lot of changes in the pipe, and just as traffic is being gobbled up by a few big players in the industry while old traffic is dying out in the TGP business model. New delivery systems are on the way. Keep in mind for the smaller and middle class porn companies.. this is going to put greater control of your products in the hands of a very few who can afford the networks and infrastructure.
This means either you are going to have to partner up, most likely getting the rip off deals like you see today in VOD. Or you are going to have to build up your own client and base of customers to lock them in for the future. Or you spend the money to build the mobile apps, and other things needed to keep up with emerging technology and distribution.
Long story short. The adult industry is being reshaped, and soon a handful of companies will control the vast majority of both technology/distribution and traffic.
