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There will always be room for both types of content. The main thing IMO is that it fits your marketing plan. Nobody wants to see the same content everywhere, including the surfer, but it's just as easy for both exclusive and non-exclusive to become over saturated. Using Twistys again for example; they have both types of content available to affiliates, and I bet only 1 out of 20 submits get accepted to TGPs. Everyone and their dog is promoting them. However, they are selling a brand and that is number one, but this illustrates the point.
This whole business model is changing fast. Paul alluded to it. TGPs are stopping taking submits and going 100% FHG. This gives the free site owner even more control over his niche. The next step is to cut out the TGPs as well and supply your own traffic. Established media realized the benefits of these economies of scale decades ago, why would internet porn be any different?
The advantage of exclusive is that it gives you more control over branding which is important in getting the surfer decide where to spend his $30, but that doesn't mean it can't work for non-exclusive as well. IMO both have their place, so long as it fits the image you're trying to portray. As things evolve, I think saturation will become less of an issue because TGP submitters will have gone the way of the dinosaur, and the webmasters that remain will have much greater creative control over what gets shown.
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