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Originally Posted by arock10
My guess is porn is still making a ton of money, but its concentrated to a much smaller % of companies then in the past. No conspiracy here, adult industry just continues to mature like any other industry
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Sure. But I think the $/visitor is declining even for those who are benefiting from the consolidation. That's not technically maturing but it is following the standard business cycle and we are in the decline phase for paysites.
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Easy answer.
Mom and pop don't really know how to run a website or stay relevant in the rapid changing industry.
The "middle men" know how to run a business and have positioned themselves to play an important role in the industry. They can live without mom and pop, but mom and pop can't live without them.
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I think it has more to do with "because they can". No government is watching for monopolies or unfair business practices in porn unless it's watching for customers getting screwed. No government is interested in protecting ma and pop porn operators. It's open season on the smaller players as a way to increase earnings from a dying paysite industry. Visa and Mastercard (which are monopolies in themselves) does not help matters either.
If there were something like paypal for adult it could change things overnight. But part of the reason it doesn't exist is because the big players in adult don't want to see it. Imagine anyone with content being able to open a paysite in an hour while paying 2.9 to 5% + 0.50 per transaction regardless of volume. It would radically shift power back to the ma and pops as well as some affiliates.