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Originally Posted by Nathan
Paul, I give up  It's like talking against a wall... Well, a tad more fun than that, but a waste of time, you completely ignore arguements anyway.
If you would at least acknowledge some things people tell you, that would be a start, but you blatantly ignore 100%. |
I blatantly ignore the blatantly obviously wrong. Private's figures don't make a scrap of sense if that's the whole business. They simply could not of afforded to produce the content they did on the numbers there. They couldn't of afforded to fly whole crews to Thailand, Seychelles or the Caribbean, or hire great big mansions and shoot the features they did. If you knew enough about the business you would understand that.
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One thing I never mentioned, was that all these awesome production companies you mentioned, should have made tons of money online, since their conversion and retention would be sky high. But yet, it is not. Because content might be important, but it needs to be adapted to the medium!!
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With 0 effect to their online business???? That's what you don't understand, they had big clients saying "if you go online in a big way we won't buy your product."
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A high-quality 3 hour DVD might be important since quality is everything you get there. But on a computer screen, 20-50 minute clips, massive amounts of content, far more than on one DVD... none of that you even pretend to begin to understand.
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Which can be cut down to 5 scenes. Most men watch a scene at a time. They aren't there to see a feature porn movie for 90 minutes. It's about a 20 minute jerk off. Then the next day watch the next scene. Tube traffic proves given the choice consumers prefer a 20 minute jerk of to a months membership.
And yes the customers did have massive amounts of content, that they wanted to download in a month, cancel and not join for months. If you believe what the online gurus were saying. And surfers, they want to download as much as possible for as little as possible and then not pay for months.
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It does not matter if you think I do not know porn. I do not need to know porn. I need to know how to sell things online. Actually, I do not even need to know that. I have a team that knows that. I am simply good, very good, at M&A and Synergies.
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Then boot out the guy on your team who accepted that Irish Jig scene.
Put the scene up on Pornhub. You ignored that point.
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Also, very important, you keep mentioning that I am ignoring the retail revenue. What YOU ignore is that markets evolve. More people buy, costs of distribution and production drops, then the cost per item drops. That's how markets work. It's a fundamental thing needed to evolve the market. As others have told you also, 10000 copies sold at retail of 10000 releases each year, is complete and utter nonesense. it's much closer to 2000 copies of 10000 releases each year. so 20 million copies sold. That also is not avg of $30 per copy, since back catalog back then already sold in bundles, and for less than $30 a copy. But let's just pretend it was $30. That's 600m USD.
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Rubbish. Most companies would of gone bankrupt if you're right. 2,000 copies selling wholesale = $20,000 per tape. Didn't cover the production costs. 5 scenes for $4,000
Maybe for Amateur. Which as you said was a small market offline.
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Compare this to paysite memberships. That's 20 million memberships a year, 1.66m memberships a month, 55555 memberships a day. At retention of just 1.5 months on avg across the net, that's 37000 sales a day needed to generate that revenue. Among the Top 10 programs, that's just 3700 sales a day. I can GUARANTEE that this number is easily beaten!
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Again you ignore the biggest part of offline porn's income. Retail sales. You compare your retail sales with their wholesales sales and cover it with a phrase about evolving market. I'm saying about porn income 15 years ago. Which was hugely about retail.
You don't even know where a very large part of that income came from and ignored that part.
So I will tell you, it was RENTAL. Rental of porn tapes was a huge earner. Customers who rarely bought a tape, were very happy to rent one. It more or less doubled a porn shops income.
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But on top of this, profit margins are also much much higher than retail, wholesale or production companies had on the DVDs.
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A shop marking up 200%
Again you display a lack of knowledge of offline. If you had been a porn shopper you would of known about rental and that porn scenes couldn't be shot, edited, packaged for $4,000 per scene.