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The real problem is actually that the tubes supply anything a surfer could want in an entire market segment: quick, non-specific porn.
Tube sites offer immediate gratification, and offer a bigger selection of hardcore porn than most paysites. If a surfer isn't looking for anything specific, and wants something to look at right away, the tubes fill his needs entirely.
Unfortunately, this greatly damages the supply of non-specific impulse sales. If a surfer really wants something very specific (like a model or a niche), paysites are still a good option. If he just wants something quick to wank it to, tube sites beat paysites.
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