How Has The Economy Affected The Industry?

Was wondering what you folks thought about this question, the past few months there have been lots of threads across various industry boards from people complaining that sales are down, retention is down and that sites are converting much lower than they used to do.

Do you think this is due to the current global economic depression or do you think there are other factors involved with this apparent downturn in sales stability in the adult industry?

For me, i must admit, the past few months have been very hit or miss with sales to Condom Cash, December was a great month for sales, we actually saw a 15% increase but January was one of our worst months, with a decline in sales from last year of almost 20%.

So far this month we seem to be on track for an 'average' month of sales based on the same time-frame last year but that could all change.

I really do think that the industry is being effected by the gloabal recession and that surfers are no longer opening their wallets and spending on entertainment items like porn like they used to because they are so unsure what the future holds and those that are buying memberships, appear to be cancelling immediately or are opting to join for a single month rather than choosing the rebilling option.

So what are your thoughts, is this industry wide downturn in sales and conversions retention rates due to the economy or do you think there are other forces at work?

Regards,

Lee

The numbers are down in every industry. People read every day about layoffs as companies get leaner and I think that consumers are doing the same thing...getting leaner as far as spending.

Of course, there is the credit crunch and people have less credit for discretionary spending...especially after the Christmas bills have hit.

So yes, I think it is totally due to the global economic conditions.

Of course it's partly due to the economic collapse.

People need their credit cards to buy food.

Impulse buying of all kinds is down.

I think it is an issue related to the economic downturn, but in more ways than one. Even those that are not being affected by situation directly are being scared out of their gourds by public figures saying scary stuff. Like the British PM actually dropping the term 'depression' and directly referencing the 30s. It's almost like he wanted a run on the banks. I dunno, I only got a B in my economics class, and it was through the Social and Behavioral Sciences College rather than the universities business college, so maybe I just don't understand the vagaries of economics like I should, but I think irresponsible comments on the part of our so-called leaders can magnify the problems we are already facing. Now I'm going to put my soapbox back under my desk and go home. I'm watching Rock n Rolla tonight ;)

I think people aren't spending as much with all the fear in the news about the economy, and more people are just looking at free content, or downloading porn for free from file sharing networks.

I wonder how many people are actually cutting out the $150 bill for cable and internet.

If their credit cards fail on a $30 rebill, then things are not pretty out there.