Quote Originally Posted by cbl_chaz View Post
The U.S. is going to continue to struggle financially and many of the smaller studios/companies that jumped on the porn wagon because they believed the myth that porn was recession proof and a quick easy buck, will disappear.
Porn IS recession proof, unfortunately, it isnt stupidity proof and i think the decline in sales we are starting to slowly see doesnt have anything significant to do with the economy at all but rather to do with the fact webmasters are actually starting to flood the market place with more 'free' porn than ever before thanks to tube sites.

To back this up, i would offer the real experiences we had whilst we owned the club, some of the most worse off people in Daytona would visit us, these are people who's home were in foreclosure or going in to foreclosure, bought all their posessions at Walmart and quite frankly, couldnt afford to pay their bills but, whenever they wanted to go out, they would scrape together their last $20 and spend it on alcohol at the club... Same with porn, if someone is horny, they will always find membership monies for our sites.

Unfortunately i agree with you that those who dont change with the times are going to suffer the most, this doesnt necessarily mean starting up more tube sites but changing the methodologies behind their business practices when it comes to monetizing the surfer.

I really do think we are going to see a heavy transition towards revshare and per click payouts over the next 12-24 months which will enable more of those companies who do change to allow webmasters to be paid what their traffic is actually worth, not what the affiliate to their programs beleives it is worth.

In '09 as a company we are going to be launching several new products, most of them web 2.0 based with affiliate programs attached to them which will allow those webmasters who do want to change with the times to do so easily by offering more than just traditional porn site 'memberships'.

Blogging, tube sites and social networking is here to stay, as a company we're embracing these new trends and have already started to roll-out some of our new product lines, the first public one being Tube Tender, we also have 4 other properties we are working on behind the scenes.

I also think on the non-adult side of things, we're going to see more porn companies embrace the mainstream segment of the online industry, as of yet, there really hasnt been a concerted effort to bridge the divide between companies working in adult and mainstream and i think '09 will be the year many more companies embrace the non-adult world even if for no other reason than profit margins are significantly higher in mainstream than they are in adult.

Regards,

Lee