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The quality of the porn is better today than it's ever been. The deals available to customers today are the best they've ever been. The product you get for the price you pay is an attractive offer to customers I believe.
The only problem is that you can get much of the same thing from free sites, so the only people who are willing to pay are either very interested in quality, or feel some moral obligation to buy instead of pirate, or perhaps are scared of using free sites because of viruses and stuff. Also, the guy who has money and it's nothing to make a purchase.
People won't stop jacking off if the amount and availability of free porn decreases, and I think they'll buy once it becomes more work, hassle, or carries risk to pirate vs pay.
When that day comes, I truly believe we'll see a significant increase in sales.
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