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The stolen content issue will be reduced with time as more and more sites are driven outside of the US as they won't comply with DMCA. Outside the US bandwidth is quite expensive so their margins are much smaller. Nonetheless you will still have tube sites with stolen content.
The real problem is people actually believing that giving away more free content will lead to more sales. It will lead to more traffic but not more sales. The 'non compete' upsell is the problem here. You have people building tube sites with purchased content just to upsell dating and chat. That's great but they are conditioning millions of people daily that porn should be free. It was NOT like this in the past with TGPs and MGPs. Today bandwidth is cheaper than it has ever been in history. Yes you had a bazillion galleries out there on TGPs/MGPs, but none had 5minute movie or 30 minute movies, just samples promoting a paysite letting the surfer know they have to pay to play.
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