At very first ratios were bad. Yes bad. With only 1-100 it's 99% saying no. That's not a good ratio.
As time went on ratios got worse. The problem was hidden because millions lore were coming online. But users from where?
If that's to be believed the growth in our core market area, the US, over the last 10 years wasn't that great. But with more buying, the fact that a lot more were viewing for free was ignored. And instead of being a porn industry devoted to creating and selling porn it became a pseudo marketing industry dedicated to giving the product away.
Tube were the inevitable point this trend would go to. All supported by sponsors, without them funding the affiliates it would of died out over night.
Now Tubes
obviously give more than enough away the effect of free porn is clear to everyone. No one thinks that giving it away in small doses, 1,000s of times had a similar effect. They only point to the 1 who signed up and ignore the 100s or even 1,000s who didn't. The 100s or 1,000s of potential customers. Yes if they were looking at your gallery on the Hun they are potential customers. The problem of billing them is the only problem.
Unless they can jerk off for free.
But I'm wrong and you're right. Millions were to be made. The Billions lost are irrelevant. Traffic is king and the game is to get the most traffic. Even though the sites with the most traffic always had the worse ratios.
Even when a customer did buy, what were the odds on him staying, what were the odds on him getting ripped off and what were the odds on him buying again? Even today many are happy to earn a few dollars sending traffic to dating sites which con customers and don't offer anything like the service free dating sites do. Spend money on Tubes that are crucifying Paysites, so stabbing themselves in the back. Just to earn a few dollars more. Which is turning out to be a few dollars less every day.