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I think the real reason we see many programs turn on their affiliates are a combination of:
1. Revenues are down for most overall in the paysite game. Down severely. Some will disagree but it's obvious.
2. It's tempting to want to get those outstanding rebills 100% rather than 50%. If you can somehow remove those pesky obligations to your affiliates who sent those sales you can have more survival cash.
3. Affiliates are losing a lot of traffic as surfers go to the tubes for free porn.
4. Ratios are increasing due to rampant piracy.
5. Combine #3 + #4 and you see that affiliates are no longer sending the sales they once were.
6. The tubes and their content partner model are often seen as a savior. The new plan is get rid of your affiliates and all the obligations and focus on the tubes.
But the problem with this is that affiliates weren't the reason for your decline and state of desperation. It was the piracy and the wide availability of your full content. It's not rocket science. Your sales will only decline in the long term from this strategy because all you are doing is giving out even more for free than you ever were before. And to top it off instead of supporting your real partners you are supporting the people who stole from you and are building up their businesses.
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