“They’re giving porn away. You can’t make money on this.”

By Deane Barker on December 1, 2007

YouPorn Vivid Entertainment Profile: Fascinating article about how the Internet has annihilated the “traditional” pornography market. In particular, pornographic DVD sales are in “free fall.”

[…] lately, success hasn’t come easily for Vivid and its upmarket rivals. Three years ago, 80 percent of Vivid’s income came from DVD sales. Today, Hirsch puts that number at about 30 percent, with the rest coming from a fragmented range of sources: subscriptions to Vivid.com, pay-per-view TV, internet video-on-demand, merchandising, and mobile-phone deals. Domestic DVD sales are down 35 percent this year alone. His revenue is flat, he says, but that’s mainly because he’s been cutting costs. Within five years, he claims, DVD sales will be close to zero.