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Old 05-30-2011, 10:36 AM  
raymor
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Join Date: Oct 2002
Posts: 3,745
I've been in the business fifteen years. Between 1996 - 2000 there was a drop because
supply caught up with demand. Prior to around 2000, there basically enough sites for
the number of surfers, so money was easy. There were three main content suppliers at
the time, so content was a lot more expensive than a few years later.

Bandwidth as been good to the industry, though. Here's why. Of course bandwidth was much
more expensive per GB. It was more expensive for surfers, for pay sites, for free sites and for
bad guys. So surfers on "56 Kbps" (really 38 Kbps) connections downloaded 400X300 pics
from the free sites and 640x480 pics from the pay sites. That's about 25-50 KB for a pic.

Today, surfer's connections are a couple hundred times faster and the content is a couple
hundred times bigger. Your host gives you a couple hundred times as much bandwidth for the
same money. You're actually probably spending about the same amount of money on bandwidth
per surfer. The free sites too are still spending about the same amount, they are just delivering
high res videos rather than low res photos.

As web hosts, we used to charge $5 / GB. A GB was 20,000 photos - enough for about 400
customers to jack off for a few minutes. Today, for the same $5 we sell you 50 GB, which is
80 hours of video - enough for about 400 customers to jack off for a few minutes. Either way,
$5 worth of bandwidth is roughly 400 short jack off sessions.

There's really nothing new about tubes. They were just as prevalent in late 1990s, only
they had pics. Soon we learned how to monetize most of them as TGPs. The people giving
away content, stolen or legally, do NOT have any bandwidth advantage over the free sites -
both sites pay the same amount to deliver the same video. Where the tubes have an
advantage is that while today's pay sites look pretty much exactly like they have for many
years, the tubes are trying to innovate a little bit. Most pay sites follow pretty much the
exact formula we developed 15 years ago, except it's video now instead of pictures. That's
good to learn from experience and do what works, but also experiment with different
little changes one at a time and innovate. Let your business model evolve. I have an Android
device connected to my machine right now and we'll have an Android app out for Strongbox
over the nest few months. What are YOU doing with Android?
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