Quote:
Originally Posted by boobbucks
No doubt they are money making machines.
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That isn't entirely true. Tubesites (I don't run one, I am working on reports from multiple sources) are a high volume, low percentage business. Basically, you spend 10k on bandwidth, and you should in theory take in 12k of revenue. Those ratios are on a "good" one. On a bad one, you could easily swap those numbers and find yourself 20% underwater every month. Bandwidth is cheap - but movies are big files, and longer clips and such can affect the business model.
As always, my understanding is that niche tubes do slightly better initially, but the burnout factor on the content and number of sponsors is an issue. Some niches only have a handful of major paysite players, so it is rough.
The numbers on tube sites are marginally better if you are promoting your own paysite(s), mostly because you avoid the shave, lost clicks, and you control the exit consoles which can pay the bills. But even then, the programs owners that do run tube sites aren't reporting great returns, just another source of traffic that makes TGP / MGP traffic look like gold.