Originally Posted by adultmobile

There are so many failed adult sites (especially cams), just most it was less expensive to setup than those mainstream ones.

From that article the most important things I see are these 2:

"The business decision to focus on technology and avoid building a consumer application had a significant impact [on the eventual failure]."
(Let me add: whatever "technology" or software or site you produce, it can be copied and re-coded in matter of weeks, no matter what... take as example myfreecams or streamate (or facebook, skype), you can clone their software, their value it is the users who are "used" to them).

"They gave away a service for free, and ran out of cash to pay the bills"
(Let me add: this would be true for youtube, facebook, skype etc. too, if they was not acquired and funded by banks and big corporations. The free it should be an excuse to sell something - even if just advertising - and it should pay back costs, from very early, not "in a future".).