Quote:
Originally posted by stocktrader23
My point is the people that have been in porn for x number of years have had plenty of time to expand. You have to evolve with the times. If someone got in porn 5 years ago and ran it like most aggressive mainstream businesses are run they would be making profit from every aspect of it. Even on the bottom of the scale....Someone that was making $5000 a month profit submitting their own galleries could have expanded more. Hire someone to work with you, submit twice as many etc. From the time TGP's started catching on to now how many galleries could one person that wanted a chunk of the market be submitting daily? Of course profits with TGP's went down but the big players should be making a smaller percentage on hundreds of times more exposure, overall making more profit. For some reason people in this business don't try to expand like mainstream businesses. Imagine if Sam Walton had been into porn.
The ones that understand this will be OK regardless of where the industry goes. 
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there's more money in mainstream from investors. you can be more aggressive when you have an excess of cash. competition is a major problem in this industry.
it hurts margins. thats the key. sure they could reinvest profits to make more money, but margins would be dropping because the increase in competition is outpacing the industry growth rate.
the large increase in competition drops your ROI. especially when the industry is not growing fast enough to offset the increase in competition, and i believe thats the case.