Originally Posted by Snake Doctor

Well here's the thing, we're still really early in the game, so nobody really knows what's going to happen.

BTW, AT&T didn't drop long distance prices because they were serving pictures and videos on the same lines. They dropped prices because MCI and Sprint did to them, what Craigslist did to newspapers.
They took a far far lower profit margin to offer the same service.

At the time, most people didn't foresee internet service or cellular service or whatever, there were just new players trying to break into the biz, and the competition and innovation that followed over the years was astounding.
Is telecommunications a larger industry today or a smaller industry today than it was when AT&T was basically the only game in town?

Now, while there is no perfect analogy, the adult internet space is going through something similar. Margins in the early days were astronomical. Not because of any great business savvy on the part of the players, but because they were the only ones there.

Now the delivery technology has improved, the costs associated with delivering the product are a fraction of what they used to be, and there are many more competitors in the marketplace.

So now, today, the winners are the consumers, and the losers are the business owners who don't innovate.
Today you can get a membership to Brazzers for $100/yr. They're offering full HD videos and have an insanely large library that's updated multiple times a day.
For $25/mo you can get a membership to Naughty America. They have a similar content library plus offer several hours per day of live interactive content for free to their members.

These products are 100 times better than what Cybererotica was charging $50 a month for 10 years ago.
Obviously, their margins are tiny compared with what sites like Cybererotica and Karasxxx made in the early days, but that's true of any maturing industry. The internet and adult internet are no different in that regard.

They won't be "smaller industries" by any stretch of the imagination, but they will be "smaller margin industries". That's just the nature of the marketplace though, it's inevitable.