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In this thread people talk as though ADULT is in trouble. In the economy as a whole, about one of every eight people either can't find a job or have given up hope and stopped even trying. It's not adult, it's everything, the world economy led by the US. Never mind a processor, entire countries are going belly up.
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The recession hasn't helped. Still it's not the sole or even main cause of the decline. We have to accept the blame for that ourselves.
Porn always was a small industry when compared with others. Worldwide sales revenue weren't bad. Yet this was split into 1,000s of shops turning over, let's say, $1 million each.
There were a few moguls, Flynt, Hefner, Sullivan, Gold, Raymond, Uhse for instance. Then there was 1,000s of smaller fish. Online replaced it and none will reach the size of those guys. And if the ever do, we will never know it for sure. The small to medium businesses were never able to step up a gear and are suffering.
Yes they diversified using the money in porn to invest in other forms of business. How many online porn companies did the same? The most successful was probably Paul Raymond.
At some point a new industry has to leave the little business methods behind and start to act like a real industry. Our business methods prohibit this. Giving away a product to get 1-1,000 consumers to buy, isn't a way to grow an industry. Unless the ratio of 99.9% can be improved on. And it's not. It's getting worse. Recession or no recession.