In a letter sent to affiliates, the company said, “In the past two years, business for the adult content industry has become particularly tough and StrictlyBroadband hasn't been immune to these problems. We are in the process of becoming independent from our parent company, and as a result we are forced to cut operational costs.”
Effective July 1, StrictlyBroadband has determined that it will support affiliates that have generated five new sales over the past three months.
“We apologize for having to take this action. During our six years of operation, we've paid out millions of pounds to our affiliates, and we will continue to do so, but we can only support higher volume affiliates into the future.”
According to the company, this announcement does not affect royalty payments for content sales, which will continue to be paid as normal.
Final June payments will be sent out in August.