[Hell Puppy]

The other question around VOD is will people continue to tolerate pay per minute? Or WHY do they use it now and will it still exist in the future?

Now there's a whole other discussion about how broken the adult business model is with $30+ join rates while paying affiliates $35 per signup. So I'm not gonna touch that.

But instead, let's talk solely about VOD.

Historically, people have always preferred all you can eat to measured service when they can get it. This is true across any industry you can think of, telephone, etc. If they cant get all you can eat, they at least want to buy things in blocks that meet their needs. This is true of your cellphone. This is even true of your cable TV or satellite service. It's kind of measured in that it's ala-carte, but you buy the package that meets your needs for most months with the option to buy more on an as needed (on demand) basis.

Why?

What's the psychology?

Easy. People like a predictable bill and expenditure. Most people cant control themselves or manage their money. So they want that comfort.

So why would people go with PPM on VOD or even webcams when there are plenty of flat rate pay sites out there that have millions of pics, thousands of videos, etc.

Easy, the quality difference is huge....or rather the spankability. The flat rate sites for the most part are the same old stuff over and over. Whereas a distribtor like AEBN has EVERYTHING. They have all the top stars, top studios and they present it reliably and with quality. Same thing with webcams, you're getting a live girl and have enough to choose from to get what "does it for you".

So will it stay around? Only so long as someone doesn't cave and make something of a similar quality available on flat rate. But I dont see it happening. The studios still need to bring in good money, and you cant do it by giving the stuff away. Ma and Pa providers can, but again that's a whole different market segment that arent' relevent to the discussion.

What I could see is a cell phone like model whereby you have something similar to a cellphone contract whereby you can get a discount on buying big blocks of minutes if you commit to buy that block every month for a year. This is good for both the consumer and the business. The consumer gets predicability of his expenditure while knowing he can always go to AEBN and rub one out. And AEBN, or whoever, would gain a portion of their income that is as locked and predictable, if not more so, than anyone's existing recurring model.