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Originally Posted by NemesisEnforcer
From the April 2019 report for adult and pornographic websites in the U.S. (excluding offline distribution of pornography and live webcam shows):
"Over the past five years, industry revenue increased at an annualized rate of 10.1%, including 6.2% growth projected over 2019 alone.
Over the five years to 2024, industry revenue is projected to increase at an annualized rate of 5.1% ..." This is NOT comparing 2019 to 2006, just trends for the given years. Although the report provides numbers for revenue, it does state, "Average industry profit margins have remained low, ..."
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as the big companies arenīt in the US this numbers seems to be more or less correct - assuming that a big part of the revenue is not declared as "adult revenue".
Quote:
"Average industry profit margins have remained low, ..."
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this indicates that ad revenues are not included.
industry profits for B2C sales have been always quite low.
but in fact it only looks at the companies based in US. alone mindgeek have a higher revenue than the total 618 million they are talking here. maybe 5-6% of the worldwide online adult revenues are made from US based companies.
unfortunately paul doesn't find the dividing line between online and offline here. of course there are no more CDs sold today and of course the paid membership model lost a lot and of course that has a lot to do with the tubes.
the total world market in 2007 was 20 billion sales (included video sales and rentals, Internet sales, cable, pay-perview, phone sex, exotic dance clubs, magazines, and novelty stores) from this 20 billion 4 billion came from so called copyable media (videos, pictures) the other 16 billion can not be copied because they are based on hardware or human service.
even when the tubes would take 50% of this 4 billion it is a joke in compare to the 14 billion that are made today with paid ads on free adult sites.
paul does not understand that an advertiser on adult sites have very other targets as to make just profit with the product he promotes. many of them do not even sell something but give something for free. advertisers for "win an iphone" do not sell anything to the user, they collect emails and the value of every single email is 10 times higher than the profit that can be realized selling a membership or a video.
monetizing a site with advertising will always make more money as it can be used to sell each kind of service or product. and this gives access not only to the 0,26% of the budget we got til now from a porn site user. we can go to 100% of his buying power.
and BECAUSE it is free we get this buying power from much more people than only the ones that are willing to pay for porn.
the difference to the "good old times" is only that we all have been focused to sell one specific product - but ALL THIS PRODUCTS have been sold via advertising (just paid on other models). so without advertising this good old times would not even exist.
so the old fart is promoting adblock plus on his facebook site and does not even know where he got his little money from in his "golden days".
that alone proves enough that he doesn't even know why he made money.