Personally, there's still a lot of opportunity.
There are a lot of emerging markets (as someone pointed out) that can still be profitable. I agree that most of the western market is already saturated, but there's still a way to make money.
Localization is one. Producing "local" talent and marketing it to their home town is always a good thing. It makes the content seem accessible in a psychological sense. This is why amateur content has grown leaps and bounds.
With that in mind, there are still a ton of places that the US adult market hasn't penetrated. Asian countries are gradually becoming lenient towards pornography, and those are not small markets by any means.
Crack China right, and it's cash cash cash again. It'll also open up cross-selling content (Chinese content to the west and vice versa), which would give everyone a far greater market once again.
C'mon guys. You disappoint me. Too many cynics does not make an industry profit.
