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Predictions for the Adult Industry in 2008

I found this predictions:

Quote:

I came into the online adult industry about two and a half years ago with both Fortune 500 experience and business ownership experience at many levels. The online adult industry was in a solid growth stage and my perception is that 2006-2007 was a time when a lot of new technology was still pushing growth. Every program was scrambling to keep up with status quo.

Now that most companies have caught up technology wise with all the standard marketing display tools and content delivery systems being offered I think that three things are happening.

First, 2007 saw the advent of the tubesite business model that has proven to be a major problem for the industry to deal with. Anti-piiracy groups are being formed and companies have emerged to combat the rampant theft of content being used by these type of sites. New variations of this business model are emerging and there will be a period of testing and adaptation to determine possible levels of profitablility. DRM will also be a major area of discussion.

Second, as the industry continues to grow at the entry level with new websites and programs appearing daily I think that consumer spending on adult will not increase proportionally meaning that the adult pie will be split by more companies. Companies with smaller margins and less experience will be hit the hardest causing many smaller under-capitalized operations to either sell, consolidate or close shop.

Third, the time is right for consolidation. Over the past 5 to 10 years those companies that have been most successful in this industry are the ones that have a proven formula for growth and have developed their businesses to a level that rather than push for growth they are now able to buy it.

What I see coming this year is many of the larger companies diversifying and growing their offerings through acquisition rather than innovation while the content sector continues to grow by producing the products that the consumer is willing to spend their money on.

There are many niches ripe for development for content producers and it is up to the program owner/operators to determine which content will provide the best return for their particular type of customer and business model.

Author: almighty jim
source: Predictions for the Adult Industry in 2008

Another "suit" talking in circles is what I read. In my opinion, I and everyone I know that makes money in adult....are creative people who do what we enjoy and are good at it. The adult industry "innovates" when it is neccessary to present our stuff online. Just because we're not "leading the way" in technologies that wouldn't make a thin dime more for us doesn't mean anything. Believe me, if and when something comes along that is the next step in monetizing content....there are PLENTY of very smart people in adult who will make it happen. Capitalism baby! :)

IMO there hasn't been a lot technology growth in many years. The few things that porn has adapted to over the last couple years was stuff like rss feeds and cell phone porn, etc.. Nothing ground breaking. Its been a long time since porn has invented or innovated something.

I also don't see a lot of new programs starting daily. The pie isn't being cut up by new competition (new sites) it is being cut up by thieves (spyware and content theft.) I think if anything there has been a slowing down process of new companies starting over the last 6 months to a year and I think this trend will continue. The easiest sites to create are pictures and videos. Most people who start these sites either shoot content or buy bulk non exclusive content. These types of sites are the ones that are getting harder and harder to sell. People trying to get these types of sites started now will have a much higher fail rate, and others thinking about trying might not as they see others failing my often.

I agree with more consolidations and smaller companies just closing up. As the market gets more competitive bigger companies will buy more market share by buying smaller companies or they will merge with companies that allow them to diversify or grow vertically, like you see with NATS / SEGPAY or AFF / CAMS.

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Originally Posted by Robbie (Post 13642459)

yeah some of his sentances fidnt even make any sense - just a lot of tripe that has no actual meaning.

Anyone that has creativity to come up with new niches or the brains to go and research niches that havent been exploited yet - are going to make money!!!