Will this be the death of Tubes? Or at least give some a cold.
 

Will the World Economic Crisis Save the Web?

Read it and think about it before you post.

There will be an economic downturn in the West.
There will be less people able or willing to sign up to dating and cam sites.
There will be more people looking for free porn.

So will tubes that give it all away become too expensive to run?

The article points out the reality that people need paying for their labour. Investing in sites that bring in masses of people has to be paid for. In the next few years there might be less willing to pay for it. Because nothing is free.

Will the economic crisis effect the porn industry and how we work?

As sites become less and less profitable many are cutting back on content production and buying. Not a good long term policy and can only go so far. How long before sponsors start to look at other costs?

We've had it very easy for the last 10 years and even without the recent economic crisis there was a downturn in the market. Are we fit for the hard slog in front of us?

the answer is no

the answer is actually 27

hahahahaha

Hmmm and here all this time I thought the answer was 42

I thought giving it all away for free was already the business model

There are negative and positive effects for the industry.

- People will spend more time on home entertainment and less outdoor activities. After all, a pornsite subscription is (usually) cheaper than a date :)
- Unemployed people will have more time to jerk off to great paysites, than just a FHG-quickie :)
- Personal financial crisis will lead to more divorces. And more freedom :winkwink:

Oh, and as foreigner I do not complain about the 10% increase in dollar - compared to my currency past few months :pimp

Very true.

A good read.

I've had a similar thought about the effect on tube sites, although not in terms of labor as the author was talking.

I can see things going either way honestly at this point. But maybe that's what he meant when he said we are in the twilight between the old world and the new world.

Whatever happens, I think 2009 is going to be a very interesting year indeed. I think anyone that says tube sites are the future or tube sites will die is wrong. The future is going to be something that hasn't shown up yet on the radar.

You didn't factor in the 15. (2+7)+(4+2) = 15. 42 - 15 = 27
Therefore Smokey is right, the answer is 27

If you run a hosting company the point of view is very different.

Tube sites search budget on bw burning. They CAN have budget bw because they burn several Gbit line (at least the mid sized and big ones). When a client comes and says "Hey, I will burn you 5 Gbit and will take 75 servers, so make a good price"... you usually tend to sell him the bw at very low cost. In most cases almost the same cost as your current carrier cost.

Why would someone sell 5 Gbit of bw at their current carrier cost? isn't it stupid at all?
It's because when you get more volume with your carriers the price also drops. So if you get 5 Gbit morewith your carriers the price per Gbit of line drops down. So you end making money with that.

Example (prices are not realistic, but I will not tell you how much does a gbit of line cost on carrier level because you will cancel all your servers after reading this):
Before tube site comes as client a gbit of line costs 10.000 at carriers and we have 10 bgit
We add 5 gbit of line with the carriers, so now we have 15 gbit
Tube site burns these 5 gbit and pays 10.000 x 5 = 50.000 monthly
Now our price per gbit with the carrier costs 9.000 because we have a volume discount on all thebw.
Profit = 5.000 per month only from the bw volume the tube site brought.

I know several tube sites that don't even pay the bw they burn. They get it for free and only pay for the servers as long as they guarantee a sustained bw burning volume and at least one year of permanency with the datacenter.

Paul, you as a serious businessman should already know that you don't give the same prices per set to someone that comes to buy 5 sets than to someone that comes to buy 1.000 sets.
Running a mid sized tube site (about 2 - 5 million uniques) at the moment is cheaper than running 5 thumb TGPs ranging 150k - 250k each one.

short answer = no

bandwidth prices will continue to fall as use continues to climb

agreed. :thumbsup

tubes arent going anywhere anytime soon.

I agree, probalby the (near) feature will bring us something that no one doesn't even think about now. But whatever it is, traffic = king, so all the big tube sites might be able to cash in bigtime anyway.

No, you're completely out of touch with the situation on the ground.

theres no money in tube sites :winkwink: if u have any give them to me:)

great post... tube sites flourish because of the commoditization of bandwidth...

I didn't know how that worked but my first thought when reading this thread is that the
hosting companies would do something to keep tubes alive because they can still
make money from the tube site.

Now I know how the host does it. Thanks

Great inside info... :) +1

me too...

No offense toots, but that is the reason a lot of companies are in trouble. They have high traffic, and nothing to sell. Pushing the same old tired content, that surfers have seen.

Content is king.

The sooner you realize this, in adult and mainstream, the better off you'll be.

Actually you all are wrong, you forgot to divide by 3.
(2 + 7) + (4 + 2) = (15. 42 - 15) / 3 = 9

no. both 27 and 42 are wrong.. the real # is 35 divided by the amount of teeth you have times the amount of small hairs on your arm divided in 4.5 time 1009.

this will give you the answer.

I have to say I agree with you on this point. BUT there are tube sites out there that really give away too much, but legit tubes are not so bad.

Ok after actually reading the thread and shit, I just don't understand this logic...

How the hell is someone who just lost their job gonna think "Oh hey, now I have more time to spend $30/mo on a full porn site instead of jacking to FHG's!"

Nope, not gonna happen, if anything that person is gonna do all they can to save money, even if it includes SHUTTING OFF the stuff they don't really need, such as cell phones, television, and wait for it... INTERNET...

I'm not saying everyone will... but consider; those jerking off to FHGs because of 'lack of time', are not paying anyway. So... its not a loss if they become unemployed, if they didn't signup in the first place.
Of course, the social/economic situation is individual and also depends on the local welfare system, but I think you underestimate the sexual needs. And why should they pay 30 bucks? There are also cheaper trials - which is better than nothing :)

Just out of curiosity, will bandwidth prices every stop declining or even go up? Before you knee jerk and say no. Isn't most of the infrastructure we are using up until now stuff that was built during the internet boom of the 90's? I wish I could find the article but a bigwig from AT&T said at the current rate of growth they were going to max out their capacity in 2.5 years. With credit so tight, who is going to build new infrastructure if that is the case?

I'll be honest, I really don't know much about that side of the hosting world so this is an honest question. Just remember, when gasoline was chosen to fuel cars it was because gasoline was a waste product and it was thought there would always be a cheap abundance of it.

its nice to see a business thread again :):):)