Why Porn Is Dying

OK how many times did you hear, several years back, about how porn is “recession proof”?

You won’t hear anyone saying that now. Hard times hit the industry hard. But you have to ask yourself; Was porn destined to fail from the beginning?

Lets look at the porn distribution model there are two basic variations:

A: The producer director puts up the money, and pays for a finished product with boxes, duplicates, everything.

This is then sold to a manufacturer, who sells the product to distributors on the producers behalf for 25% of the gross.

Distributors then sell the product to the retailers, with the ability to return unsold product to the manufacturer for a full credit. They also had no motivation to pay on time, 90 days past due was considered on time….Many went longer or never paid at all and in this model the manufacturer had no real motivation to collect until the past due amount got high, if then.

Retailers then sell to the customers.

B; is exactly the same as A except the manufacturer buys the product from the producer for a set sum and the manufacturer pays for duplication and boxes.

So what we have is FOUR levels of markup on a product that sells at most for 20-30 bucks. Is it any wonder that porn died? Is it any wonder that the internet killed the cash cow? Now with the internet I can produce the porn and sell it directly to my consumers with no mark ups. Needless to say I make more money this way, a lot more. And the people in Porn Valley wonder why the market has gone to hell?

Seems to me that failure was pretty much built in.