opinion

A Business Slowdown?

Recently, XBIZ World magazine asked several industry players, "Is the industry experiencing a downturn or is it mostly perception?"

Here's what they had to say:

Provided there isn't a huge economic downturn that I'm unaware of, I'd venture to say that it is mostly a perception that industry-wide revenue is down. While revenue is down in certain areas, it is up in others. Brick-and-mortars are probably feeling the biggest hit, and studios reluctant to change with the times seem to be folding or joining forces with other, stronger studios and distro companies. Meanwhile, other studios and companies seem to be benefiting from newer concepts like online rental and VOD. This is the future, and our modes of delivery are undergoing changes far more dramatic than the film-to-VHS-to-DVD shift.
— Justin Brand, Content Manager, SugarDVD.com

I think it's perception – industry- wide there is more competition, more content delivery methods and more means of revenue. The industry has been and will continue to grow. Always adapting to change and innovation is most important, however supporting the growth of free content distribution (torrent sites, tube sites, etc.) is probably not the best direction. While it can be great for branding and reaching a wide market, with the fast-growing amount of free content available it comes to a point where we've got to stop and think about the old saying, "Why buy the cow when you get the milk for free?"
— Monica, Affiliate Manager, HotMovies.com

I see a lot of changes happening within the market. I don't see a downturn. The DVD market is shrinking, but the online market is expanding. There are new players and new money entering some areas of the market, while several mainstream segments have reached saturation. The whole industry seems to be in flux right now.
— John Sander, Director of Marketing, Kink.com

I believe that is the perception, although I also believe it is wrong! There is the same number of surfers out there and while the economy may have a little negative impact on spending, there are still more and more users coming on. What you are seeing, however, is more sites, more new products and more competition. So if the webmaster isn't constantly upgrading their sites, and adding in more fresh and unique content, then the surfer has too many other places to go. I wonder if a lot of webmasters forget the No. 1 rule: It is easier and less expensive to sell to your current members than it is to get new ones.
— Craig Tant, Marketing Director, MooCash.com

I would definitely say that the industry is in a downturn in terms of industry-wide revenue. Affiliate software programs such as NATS make it simple for anyone to open an affiliate program – but the tough part is making money with one. The key to running a successful affiliate program is to have a sound business plan and stick to it. You have to treat your affiliates well and provide them with quality sales tools and content and do everything you can to make your sites convert and retain. You also have to keep the members happy, as the competition is stiff and surfers have so many choices of places to spend their money – if they do spend anything, considering the glut of free porn and torrent sites available these days.
— Greg Parsons, Owner, SlickCash

Related:  

Copyright © 2026 Adnet Media. All Rights Reserved. XBIZ is a trademark of Adnet Media.
Reproduction in whole or in part in any form or medium without express written permission is prohibited.

More Articles

opinion

Eight Steps to Help Merchants Avoid Onboarding Delays

Adding a new acquiring partner, whether directly through a bank or through a payment facilitator, can mean an onboarding process that takes up to two months.

Cathy Beardsley ·
opinion

Why Better Sizing Can Help Pleasure Brands Reach More Customers

In the sexual health industry, we must be ready to problem-solve around every corner, especially in retail. You never know who will walk through your doors or what they might need or want that day, not to mention curveballs such as disabilities, neurodivergence, trauma responses, and, of course, body image sensitivities.

Mersy Love ·
opinion

How Layered Fraud Controls Can Stop Card Testing Before Chargebacks Hit

You suddenly have 400 new $1 trial signups. Sales are up, the approval rate looks great and, at first glance, the numbers seem worth celebrating.

Jonathan Corona ·
profile

WIA: Barnaby's Amy Carnegie Draws on Retail Roots to Shape Product Development

In 2012, Amy Carnegie was pursuing a master’s degree in forensic psychology and looking for a part-time job close to home when she discovered Good Vibrations’ newly opened Oakland location. The store was on the same bus route she took to school, making it a convenient option. She didn't anticipate the position would lead to a nearly 15-year career, during which she would rise through the ranks to become head of buying and product development for Good Vibrations, Babeland and Camouflage.

Ariana Rodriguez ·
opinion

Falcon/NakedSword Makes Every Body Count in 'Deeper by the Dozen'

Double trouble is on the menu in NakedSword’s “Deeper by the Dozen,” an all-sex buffet where personal space is scarce and temptation is plentiful. Trading scripted drama for a fresh batch of bare buns, the studio serves up two gangbangs with exclusive Jaxx Cody and “Trailer Trash Boys” regular Ian Sterling as the main course.

Christian Cintron ·
opinion

What Retailers Should Know About Pheromones and Attraction

A woman stands at your counter. She dabs a drop of something clear and nearly odorless on her wrist, brings it to her nose and something in her posture changes before she even leaves the store. A few feet away, a man turns a small bottle over in his hand, reading the label twice and wondering whether it might help him feel noticed again by a longtime partner.

Susan Bratton ·
opinion

How Retailers Can Turn AI-Assisted Reporting Into a Scheduled Workflow

If you have been following this series, you know I have been climbing a ladder. First, I asked an AI model to do a task. Then I got tired of explaining the task every time, so I wrote a skill, a reusable set of instructions, and put it in a project folder with everything the task needed.

Zondre Watson ·
opinion

Retailer Tips for Making Trade Show Travel Pay Off

When sales slow, retailers understandably start looking for ways to tighten the budget. Every expense gets another look, and travel and trade show attendance can quickly end up on the list of things to cut.

Rin Musick ·
profile

BranditScan's Aerie Saunders on Fostering Creator Knowledge, Confidence and Community

Aerie Saunders is firmly in her season. When she sits down with XBIZ, a fall-scented WoodWick candle burns in the background, pumpkins decorate her desk and the first signs of spooky season are already on display. Not that Saunders waits until autumn to embrace the macabre.

Jackie Backman ·
opinion

Why Adaptive Pleasure Belongs Across Every Adult Retail Category

For too long, accessibility in adult retail has been treated as a side conversation. When it appears at all, it is often tucked away in a hard-to-find website category, framed as a special accommodation or treated as a medical add-on rather than a legitimate pleasure category. That approach misses the point.

Hail Groo ·
Show More