[EmporerEJ]

While I appreciate your drawing a parallel between the recording industry, and the adult industry, there are several important differences.

One very important one, is, no one walked into a record store, and drug everyone away in cuffs, just for doing business. For those of us in the adult business in the 70's, (not me) and 80's (me,) this was a very real, and very imminent threat.
Every product/movie sold had a small "legal fund" fee "built in."

It's not as bad now, but the threat is still there, and VERY real. Invisible, secret name, in their mom's basement people think they are hidden, and safe. But real, visible companies have exposure on this today. Not only from local authorities, (usually worse,) but from the fed, and every other states' attorney general.

On the other hand, I'm constantly amazed at the difference in "price" the online industry charges for their content. I find your comparison specifically confusing.

While the sell through market sold adult DVDs for $50, (VHS tapes for about the same years ago as high as $89.98) the non adult industry followed suit. In the VHS days, new movies sold for $89.98, dealer cost about $72, with a ROI at about 45 days for rental stores.

Now, at least, DVDs sell for about $20, $17 wholesale, with an ROI at about 5 days by blockbuster standards.

But in the adult biz, you have online companies selling videos by the minute. Isn't that what your company does? And how much does that break down to, with a 90 minute movie? How about watching the second time? Do they pay again? And, again?

Even with a $50 DVD, it's a better deal. Once they own it, they own it, and can watch as often as they like....without pressure, and without a clock ticking in the back of their heads.

For the poor guy trying to "rub one out," which is the better deal?

And why is anyone surprised that he goes after all the free content he can watch?

Remember, there is a TON of content from the 70's, and 80's that has already been capitalized, over and over again. at this point, ANY amount of money earned on it is gravy.