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Old 01-20-2008   #73
RawAlex
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Default Re: How will the recession effect our industry?

Hell Puppy, everyone said the same things about TGPS about a year after they were launched. It is true that many of the bigger TGPs have been bought out and merged, but it would appear than many of them now are making their money selling spots for listings and not by being great traffic generators.

The other thing is the effects of tube sites. Many people running these tube sites have come to realize that they are a VERY marginal business, with huge bandwidth, maintenance, and potential legal expenses, with somewhat limited income potential, often becasue they have given away so much content that the surfers just don't buy porn. When you see tube sites getting sold, it is because the business model is tough and not working in many cases, not because of their big net incomes.

Unlike mainstream, there isn't as much money in porn sites getting millions of unpaying visitors. There just isn't enough people in porn stupid enough to pay mill rate to be on a pornsite, everything in porn is tuned to production and results. There are very, very few tube sites out there showing that they can actually make decent ROI right now, and that is what is keeping them from being as attractive to the programs.

Tube sites have proven they can get traffic, but they have not proven they can make money. Traffic stats are only there for the owner to masturbate over. Money makes the world go around.
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