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Free Sites have definately hurt sales for pay site owners. But I am not bitter at any free site owners as, free sites is as much now part of the industry as pay sites are to affiliate program owners.
We can't expect free sites to go away, we have to adapt.
Right now the adult online business is in it's consolidation phase, every industry has one. Automobiles had one in the mid 1920's where growth leveled off and consolidation and development of new technology and new incentives and new promotions were done during a 5 year perioid.
During that time is when the strong companies get stronger and the rest either get bought out or move onto other projects. There will be a consolidation phase right now may last another 3-5 years who knows, but after that is when we will continue growth upwards at an even faster pace then the last 5 years.
That's the way business cycles work, online adult is no different.
Good times are ahead for companies that endure the next 3-5 years and roll with the punches
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