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There was a time and a place for it. In a fragmented market, where a company with conviction could create the girl, it made sense for them to own all rights. Now the market place is much more efficient, much more saturated, much more competition. Could it work out? yes, but the odds are stacked against the company and the girl. Obviously everything is based on price. For some reasons, the girls love the big name studios and calling themselves contract girls, so they sell themselves for cheap. It's a built in advantage to having that brand for so many years.
In reality, the girls are better off not signing, they will easily make more money doing independent scenes if they are hot. And for a girl today to truly become a pornstar name, it makes more sense for them to do as many scenes as possible to generate an audience, then for one company to invest a ton of money hoping to build her. In a way, it's kind of the opposite. Also, contract girls will only work for really the stand out girls, and a lot of the recent signings I've seen haven't been that stand out.
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