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".XXX operators whom own there own content"
How and who would determine that ? I own my own content exclusive, I buy content, I am an affiliate, I register a .xxx domain mix it all up. Who's going to do that ? Answer: nobody
".XXX operators may become subject to fee's by the regulation authority in the UK"
This is possible but I don't see how it's specifically related to ATVOD
"however in return may get further on demand distribution of there content to consumers."
Not sure you understand the UK, unless you mean getting hardcore on Sky, that isn't happening ever and even less chance now Atvod exist.
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