Quote:
Originally Posted by AVN Theo
Guys, you should have a look at the June's issue of Harvard Business Review. It has a very interested article on "Competing Free" (page 104). it will help you understand better this business model and it will give you some ideas.
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interesting article although porn might be too far gone to recover. one significant suggestion in the article that related to porn is to 'offer your own free product'. some program owners have purchased or launched their own tube sites but i don't think they are taking market share away from the major tubes - or benefiting from many upsells to their paysites.
the article also stated that one way to compete against free is on quality and/or features. however one network or paysite cannot compete with a tube site that has thousands of videos in a wide range of categories. when faced with the choice between paying for a quality site and not spending the money, 99% of customers will choose to keep their money in their wallet. that leaves all program owners competing for the very small number of customers with unlimited discretionary income.
and in a recession that results in a lot of hungry site owners..