Quote:
Originally Posted by Tubevideditor
Serious question, if VR is that hot, why are so many companies leasing/licensing their content out?
This generally doesn't happen with new non VR paysite content.
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We are licensing for a number of reasons.
Firstly, I believe it is good business for us. Trying to return the cost of shooting, which has run over $1 million for our library, only by membership sales is hard. This is because we are paying great revenue share to affiliates. So to recover a million dollars in content costs, we have to do about 3 million in sales (costs of affiliates, banking, office and general operations...)
While our VR sales are screaming, doing $3 million in this new segment is only about the total that I expect from this current content. Therefore, all profits would/will be coming from secondary revenue streams. Licensing our library is one of those streams.
Secondly, I believe that it helps everyone if there is good, high-quality VR on every membership web site. It exposes paying users to good VR, and it retains them for the site as they explore VR. Over time, this will build the global user-base for VR, and VR users pay for porn! So everyone wins.
Finally, by licensing and generating revenue, we can shoot our next set of content with even larger budgets. This will push the quality of our next set of shoots up even further, and the cycle will go on.
For all of these reasons, we have chosen to make our stuff available.