|
Free drove the first dot com bubble burst and will drive the second one. Remember back when Yahoo was the hottest site on the net and every VC firm on the planet couldn't wait to throw money at start-up websites that were giving away free stuff and were supported only by advertising? What did they learn? They learned that advertising didn't make them enough money to get by on and most of those sites are either now gone or are shadows of their former selves. Eventually advertising isn't enough when you give away a ton of free stuff and your costs are huge.
I won't be shocked when it starts happening again. Youtube doesn't make a profit and now has over 1.5 billion dollars in ongoing lawsuits against it. If they lose those suits I won't be surprised to see the site either be shut down or changed so drastically that it fades away. Myspace is making money, but it had around 500 million in revenue and only about 10 million in profit. That is still some nice change, but with 490 million in annual costs they are walking the thin line. All they need is a few things to go wrong and they are suddenly bleeding money. The list goes on and on. TV studios are now giving away their shows on their sites so that they can make something out of them and try to compete with the torrents and pirates.
I won't be at all surprised to hear of major companies either shutting down or greatly downsizing sites because they can't make money off them and I think in adult many of the tubes will be among them. It is only a matter of time until the surfer gets bored with the cam and dating ads on the site and doesn't click them anymore. When that happens they are in trouble because you can't really sell a site membership to people you are giving hours of free porn movies to.
Porn tubes will be around for a long time, but I would imagine that they, like the survivors of the first dot com bust will have to change. They will have to give away less or restrict their content in some way. If you run a restaurant and you give away a free dinner to everyone that walks in the building hoping that a few will pay for a Pepsi and a dessert, you won't be around for very long.
Just my 2 cents.
|