N.Y. Times: Internet Blamed for Industry Downtown
Posted: Sun Jun 03, 2007 3:01 pm
I just read this on AVN.com pretty interesting reading.
Layla Jade xoxo
N.Y. Times: Internet Blamed for Adult Industry Downturn
By: David Sullivan
Posted: 11:00 am PDT 6-2-2007
NEW YORK - A June 2 article in the New York Times examines the role of the internet in the porn industry's economic decline. Quoting AVN's annual figures and interviews with producers from the online and DVD sectors, the Times reports that the Net is now creating more problems than profits for established adult studios.
"The industry's online revenue is substantial but is not growing quickly enough to make up for the drop in video income," the article states, noting that DVD sales are suffering due to an abundance of free online content and an oversaturated marketplace. The increased availability of digital video technology and high-speed internet access has resulted in an influx of amateur pornographers, whose efforts have hurt studios' bottom lines and lowered the bar on quality.
"The barrier to get into the industry is so low: you need a video camera and a couple of people who will have sex," AVN President Paul Fishbein told the Times, adding that unless current trends change, adult revenues are likely to shrink this year.
"People are making movies in their houses and dragging and dropping them," said Harvey Kaplan, chief executive of online payments processor GoGoBill.com. "It's killing the marketplace."
Red Light District president David Joseph and Nectar Entertainment CEO Sean Logan both told the Times that they hope to fight the competition from online porn by offering higher production value, better talent and improved packaging - but do consumers care?
"nlike consumers looking for music and other media, viewers of pornography do not seem to mind giving up brand-name producers and performers for anonymous ones, or a well-lighted movie set for a ratty couch at an amateur videographer's house," the article notes.
Kaplan characterized adult producers' use of free internet content as a marketing tool to lure paying customers as a misguided strategy.
"They think that if they give people enough of a free sample, they'll come back and pay, but that's not true," Kaplan told the Times. Instead, Kaplan argued, users are watching what they want for free, and then leaving.
CDGirls.com CTO Manny Ulele disagreed with Kaplan. "The perception of the consumer is that there is free porn," he said. "But most of it nowadays is controlled [...] We've been fine-tuning it for years. We're able to determine exactly what works and what doesn't."
To read the full article:
http://www.nytimes.com/2007/06/02/techn ... ref=slogin
Layla Jade xoxo
N.Y. Times: Internet Blamed for Adult Industry Downturn
By: David Sullivan
Posted: 11:00 am PDT 6-2-2007
NEW YORK - A June 2 article in the New York Times examines the role of the internet in the porn industry's economic decline. Quoting AVN's annual figures and interviews with producers from the online and DVD sectors, the Times reports that the Net is now creating more problems than profits for established adult studios.
"The industry's online revenue is substantial but is not growing quickly enough to make up for the drop in video income," the article states, noting that DVD sales are suffering due to an abundance of free online content and an oversaturated marketplace. The increased availability of digital video technology and high-speed internet access has resulted in an influx of amateur pornographers, whose efforts have hurt studios' bottom lines and lowered the bar on quality.
"The barrier to get into the industry is so low: you need a video camera and a couple of people who will have sex," AVN President Paul Fishbein told the Times, adding that unless current trends change, adult revenues are likely to shrink this year.
"People are making movies in their houses and dragging and dropping them," said Harvey Kaplan, chief executive of online payments processor GoGoBill.com. "It's killing the marketplace."
Red Light District president David Joseph and Nectar Entertainment CEO Sean Logan both told the Times that they hope to fight the competition from online porn by offering higher production value, better talent and improved packaging - but do consumers care?
"nlike consumers looking for music and other media, viewers of pornography do not seem to mind giving up brand-name producers and performers for anonymous ones, or a well-lighted movie set for a ratty couch at an amateur videographer's house," the article notes.
Kaplan characterized adult producers' use of free internet content as a marketing tool to lure paying customers as a misguided strategy.
"They think that if they give people enough of a free sample, they'll come back and pay, but that's not true," Kaplan told the Times. Instead, Kaplan argued, users are watching what they want for free, and then leaving.
CDGirls.com CTO Manny Ulele disagreed with Kaplan. "The perception of the consumer is that there is free porn," he said. "But most of it nowadays is controlled [...] We've been fine-tuning it for years. We're able to determine exactly what works and what doesn't."
To read the full article:
http://www.nytimes.com/2007/06/02/techn ... ref=slogin