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It's a combo of both. The industry could weather one or the other, but not both.
People are still paying for entertainment, the whole country isn't broke. Look at video game sales, doing very good despite costing over $60 each and having about 10 hours of content. Look at the movie Twilight, not even a huge marketing blitz but making record money this weekend. People will still pay for what they want, but when they can get it for free, why bother.
If the movie Twilight was being streamed on the web the ticket sales would be less than half. Same with console video games, if you could get those as easy as you can watch a tube site, the whole industry would collapse. Nobody would pay.
What makes me laugh is that even if the smallest mainstream industry was dealing with tube sites, they would of done something by now. Formed a task force or a group, donated money to a legal fund, etc.
Adult is so full of losers though, nothing will happen. Tube sites will keep growing, eventually they will start making less money and the owners will start fucking over their own surfers (already starting to happen) and eventually they will destroy themselves. We'll have to see how things shake out after that.
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