There will be less porn companies

[tombarr]

in the future because of a shift away from DVDs to online VOD distribution.

Because of the mass amount of videos available on VOD in almost every niche one can think of, the independent small niche video producers will begin to close shop simply because they cannot get enough sales in the current VOD delivery model to cover the cost of production.

As many small niche producers don't know how to generate traffic or even some don't have websites, they will find it difficult to get their products seen among the mass of available products and thus, i think we will see less small niche producers in the future unless somehow the VOD distribution model is changed in some way.

[Lee]

You know, whilst DVD product sales are declining, i actually see this as a good thing for smaller content producers not a bad thing and because of this, i actually think we will start seeing more smaller, niche specific producers showing up because the skillsets required to get product on VOD sites are a lot lower than those required to get product in bricks and mortar stores.

If anything, i think we have the potential to see a decline in DVD/VHS distributors as more and more companies migrate towards online content sales rather than offline.

Regards,

Lee

[gaybucks_chip]

I think there's no question there will be consolidation.

But what form it will take remains to be seen.

There may continue to be numerous content producers, but perhaps those content producers will partner with and brand their product under the moniker of a few large distributors/sites/VODs, or simply produce content and sell it outright to larger companies.

Or we might see large players acquiring smaller players in the marketplace and preserving the "branding," as has happened with home appliance manufacturers (there are only 2 or 3 manufacturers of washers and dryers, for example, even though there are dozens of brand names)

Any way we slice it, I believe the market will change significantly. Those companies who are anticipating the change should have no problems. Those that are sticking their heads in the sand, or cling to existing models will probably find themselves having problems.

[TropixxxStudios]

As a small "micro niche" producer I could not surrive if it were not for my VOD sales.

We have never had a real DVD distributor because many distributors think that our product would not sell in retail stores. We were forced to make our own DVD's, package them ourselves, handle all the mail orders, collections, etc. etc. It was a pain in the ass.

VOD has allowed us a way to deliver our product (and we use DRM) that has been HIGHLY sucessfull for us.

I am with Lee, I think VOD and DVD Downloads will help the small guy like us, not hurt us.

We have no idea how to do traffic, and we dont even show up in the major search engines...but we are an example of "If you build it, they will cum."

[A_DeAngelo]

Any way we slice it, I believe the market will change significantly. Those companies who are anticipating the change should have no problems. Those that are sticking their heads in the sand, or cling to existing models will probably find themselves having problems.

not into "clinging onto existing models" unless they are exceptionally cute!

----

yes Chip, you are absolutely correct!

[Jasun]

I know a lot of you think I'm an asshole for saying this over and over again.

But this industry isn't a hobby and yes.. anyone who thinks of it as a way to make some extra money on the side is going to be squeezed out everytime there's a shift in the way the market does business.

I know that there are a lot of companies that spend a forutne shooting content, hiring models, paying for production and post-production. They are the ones who are serious and will survive.

The ones who close up shop because they can't adapt are just the dodo birds of the porn industry. They'll go the way of the people who only bought photo sets from Ounique and posted AVS sites.