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The only way .xxx will survive is if some countries start to pass legislation requiring adult domains to be .xxx. And, we could all see that. They would argue it protects children, because it would be easy to filter .xxx sites from a child's computer. If that happens, the adult industry will definitely change drastically. It won't ever "end" because its just too much money and there's too much of a demand. But a lot of us smaller players might get pushed out.
For example, lets say some mediums such as mobile Apple products filtered out .xxx, that would be less business. To someone like Playboy, or Vivid, thats not game-changing. But for someone small who depends on that traffic, they're dead. If some ISPs try to project a "family image" and cut .xxx, same thing. Add to that the possible new difficulties in finding and competing for the best domains on just one TLD.
The group this will help the most will be pirates, as they would have less competition from the legit side, increasing the demand drastically for pirated porn. Plus, pirates would likely get through all filters as they wouldn't be on the .xxx domains.
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