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Originally Posted by crucifissio
Yes but Manwin and the big players will be looking get the most $$$ out of their content once something like ACTA or SOPA is passed. The tube model rose only because it was easy to steal somebodys work and hide behind loopholes. Remove the ability to get free content & make long term profits from stealing content a thing of the past, and most of the problem is solved. Also the file locker / file sharer sites, they are only a result of a temporary situation in the market.
In reality, SOPA or ACTA or whatever will be a game changing turn in the market. Legal tubes exist only because illegal tubes made porn easy to access for free so they had to adapt. Once the pirates finances become an easy target. the legal tube owners may well decide to move to a more profitable model again.
Tubes by themselves are a worthless model when content has to be payed for and can not be pirated without risk. Content costs $$$, hosting costs $$$$, mandatory police-ing of user content will cost $$$$, traffic costs $$$$ so the game will get very very expensive for tubes.
No business in the world can survive by giving away most of its product for free in hopes of the customer buying something down the road. Sure it's not the same in the brick and mortar world and with physical products but the tube model by itself is a fundamentally flawed model that was a result of a temporary anomaly in the market once the market changes the model is not worth shit. Also keep in mind that in the real world they cant steal your stuff and get away with it so the real world will never see a "tube model". I don't care how much new sites/file sharing methods pop up the important thing is the ability to easily take them and their finances down before they mean shit traffic wise.
Again I repeat, people may be used to getting stuff for free but 30-40$ for a membership is not exactly a fortune and the stale free tube crap will not be as appealing when responsibility for content is introduced.
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This will happen in wider markets than porn. Will iTunes prices rise?
The problem with porn is the mindset of people. Some still think giving away the product is the best way to sell it, or sell the traffic to sectors who don't buy content or pay for it to be bought. Like Coke do when they spend on advertising. Which is the flaw in St23 argument, currently he pays $0 for the content getting him traffic. If the amount of pirated content falls, he might end up paying more for traffic. Because with fewer legal suppliers and no competition from pirates. The price might go up.
The selling price isn't always governed by the cost, it is always governed by the willingness to pay. Can he compete in a higher priced market place?
SOPA isn't dead Damian, it's shelved. There's an election coming up and people are listening to voters. After the election expect SOPA to be resurrected.