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Old 09-05-2006   #1
gonzo
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Join Date: Apr 2003
Location: Atlanta,Ga.
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Default PornoTube - The Price of Porn Will Fall

Mainstreamers rationalize pornotube. They seem to understand it a little more than some in our industry... interesting perspective to discuss.

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You’re starting to see the development of user-created pornography. PornoTube does just that (think YouTube, except just for porn).
What does this mean for the internet pornography industry? Very bad news. For consumers? Very good news.
Right now the porn industry isn’t terribly difficult to enter, but still has some barriers. For starters:
  1. You need some money (probably $1000 - $2000, if that)
  2. You need an audience.
  3. You need a website.
  4. You need a way to make money.
  5. You need a way to collect money.
  6. You need equipment (a computer, webcam, digi-cam, internet connection, dildos, etc…).
  7. You must be sexually attractive.
PornoTube reduces barriers #1 and #2. You still need to buy a PC/DigiCam/Dildo, but you don’t need to buy a website. You also get an interested audience and don’t have to advertise for one.
Barrier #3 goes away completely.

#4 and #5 are not addressed by PornoTube yet, but given current trends with “Social” sites sharing revenues with contributors, they will be soon. Of course, this assumes PornoTube can find a valid business model (that shouldn’t be as difficult as YouTube’s search for a revenue model, because history shows that consumers are willing to pay for porn, rather than for 30 second snippits that belong on America’s Home Video).
#6 and #7 remain. You’ve got to have a PC, and you’ve got to be hot*. There are millions of people who have both.
*hot is a relative term, and varies from person-to-person and culture-to-culture

My Prediction: The Price of Porn Will Fall
By reducing entrance costs, sites like PornoTube will allow for more people to contribute. Supply of content will increase. Assuming demand remains constant (you can only masturbate so many times per day), prices will go down. Established sites that have high margins, and cannot distinguish themselves clearly from content appearing on PornoTube will become commoditized. Their margins will fall. Consumers will benefit due to an increase in supply and decrease in price.
How should internet pornographers respond? They should either differentiate their content relative to that of low-margin content, and/or strike exclusive deals with celebrity porn stars that can drive traffic.


Note...dont click on this source site unless you want Dave to install some spyware on your machine. Apparently hes chosen to take the short cut way for making money in this business.
http://www.dave-gallagher.net
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