Originally Posted by Trixxxia

Kane - great post.

I see it the same way - here's a scenario (although yours is more eloquent):

For everyone wanting to open up an illegal tube site - hosting longass videos, infringing on copyright and plan on surviving on ad sales, here's a wake-up call. Besides the legal issues that 'may' come from it in the years to come here's some other things to think of.

You may have some success at the beginning but eventually, those ad-buyers will reach a plateau with monetizing that type of traffic and will have to limit themselves on the ones giving them the best ROI. They simply won't be able to afford to fund all the sites by buying ad space on each and everyone of them. That will leave you with a huge bandwidth bill and little income unless you've done things right. This is not mainstream where your pool of potential buyers is practically limitless. The main buyers of the traffic right now will reach a point where your users are already their clients or your clients just won't buy.

Eventually, you'll run into this other issue (worst case scenario) - if producers/sponsors can't monetize on their content, they will produce less - leaving you with limited 'new' content to offer to your surfers and eventually, costing you to loss your market share of traffic, unless, of course, you can afford to produce stuff yourself. Will you want to invest that kind of money if you can't monetize the content in other channels of distribution - eventually, the tables turn and you'll be fucked like you fuck others - your content will be ripped and on every other tube site without you making money on it. Tough place to be.

Make wise decisions from the get-go - be innovative and build your sites where the main goal is to make money - for yourself and the provider of the content.