trends

Forging Our Way Ahead

Another new year has dawned and with it, new challenges and opportunities that will test the mettle and resiliency of those who would contend in our arena — and handsomely reward the victors of this titanic struggle to dominate and succeed in the face of so many foes: an uncertain domestic political agenda that is yet to be fully revealed by the incoming Obama administration, the unsettled economic situation and the already well-worn trails of piracy and a consumer preference for "free" — which our industry has so often trained its customers to expect.

The "sorting out" of the industry is well under way, with megabrands consolidating their market share and increasingly gobbling up all the pie. The "little guy" — as well as an increasing number of not-so little guys — are all faced with the same issues of how to compete with tube sites and spendthrift customers. Even if you can get beyond that, how do you compete with, say, the content depth and breadth of Private, which is now combined with the high-level digital distribution prowess of Gamelink (which the former recently acquired)? And those tube sites boasting the huge traffic numbers and taking the blame for much of the paysite promoter's sales woes? They have the same problem that the paysites do: competing with tube sites — other tube sites…

When declining sales have affected various market segments in the past, or a hot, new technology is making the rounds (especially when associated with a trendy buzzword), many operators in this industry have dealt with the issue by adopting a "the grass is greener on the other side of the fence" attitude, which we often see expressed in public message board postings:

"I hate spam, but email is the best way to drive sales — who has email lists for sale?"

"TGPs will ruin porn! How can we compete with all this free porn? Who has a script?"

"TGPs are so dead — I'm going to build an MGP! Oh wait, maybe I'll build a blog — there are plenty of free scripts, and I hear from a guy who would know that they really make big bucks!"

Today it's tube sites. Tomorrow it will be something else; and the panic over whatever "it" is and how "it will kill porn" will be intermingled with the cries of "give us the tools so that we, too, can partake!"

The danger lies in what I like to call "The GFY Boat Ride" — named after an extremely well-attended adult webmaster party at a Florida Internext several years ago, where the word passing about "something really cool happening over on that side of the boat" caused a mass migration of drunken webmasters that caused the boat to tip so uneasily that some observers fled — fearing the whole lot would be tossed into the harbor's cold water after the ship capsized. Fortunately, cooler heads prevailed and the ship remained afloat — but would the story have had as happy an ending had some folks not bailed?

To leave (and if so, to where?) or to stay, and if so, on which side of the boat should you be on? These are the questions that operators have to ask themselves this year and the answers may show that indeed the grass isn't always greener on the other side of the fence — and may in fact be crabgrass.

Ask the studio guys. They've grown up selling individual titles to individual viewers for $50 a pop, but facing declining (some say nonexistent) DVD sales, are moving online in a big way — but often shaken to their financial cores by an Internet business model that sees them selling access to all of their titles for less than $20. From my perspective as an adult webmaster and traditional affiliate site promoter, however, the studios are flooding the web with copious amounts of high-quality professional content that many established shops will be unable to profitably compete with. As far as sales are concerned, for many traditional paysite operators the studios are every bit as much of a threat as tube sites.

All of these issues and countless more can be mitigated through a drastic restructuring of business and marketing plans to suit today's evolving realities — regardless of the size of your operation. In some corners, this is seen as a time of collective head-scratching and second-guessing; in others it's a time of despair; and for others still, a time of hope.

This is a puzzle that intrigues me: How can you sell a product that people can acquire as much of as they want for free and thus do not need to pay for; are financially pressured not to make purchases on nonessential "extras;" and are wary from media reports or even first-hand experiences of the dangers of the adult Internet and identity theft, making them hesitant to make online purchases in the first place?

If I told you everything I was thinking right now, the boat might flip over, so I'll give you some of the conceptual highlights I've been contemplating over the weeks and months to come — both in this column and elsewhere at XBIZ.com.

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

How Native Spanish Speakers Help Pleasure Brands Expand Across Latin America

Latin America's Spanish-speaking markets represent an exciting growth opportunity for the pleasure products industry. Across the region, conversations about sexual wellness are becoming more open, specialty retailers are expanding their assortments and shoppers are seeking products that reflect their lifestyles and values.

Rin Musick ·
opinion

Why Retail Expertise Is Essential When AI Tools Analyze Store Data

Somewhere in one of our stores, someone scanned a barcode into a quantity field. The number entered was 8,388,607. At $19.99 per unit, that made a single line item worth roughly $167 million. The number was so large that the import failed immediately.

Zondre Watson ·
profile

Vendo CEO Mitch Platt Reflects on 20 Years of Lessons and Evolution

More than 20 years ago, three entrepreneurs in Barcelona began gathering over beers to pitch, dissect and routinely destroy one another's business ideas. The ritual was simple: One person arrived with a concept, while the other two tried to expose every weakness. Any proposal that survived earned another look. Most did not.

Jackie Backman ·
opinion

How to Avoid the Hidden Risks of AI-Generated Legal Documents

Artificial intelligence can write a contract in seconds, but that does not mean it can write the contract your business actually needs. Across the adult industry, operators, creators and producers are increasingly using generative AI to prepare model releases, performer agreements, privacy policies, takedown notices, employment documents and responses to regulators. The appeal is obvious: Legal work is expensive, AI is fast and the resulting document often looks impressively professional. That polished appearance is exactly what makes the practice dangerous.

Corey Silverstein ·
opinion

How Rolling Reserves Affect Cash Flow and Merchant Stability

You log in to your payment processor’s dashboard, discover they are withholding 10% of your sales, and immediately assume something has gone wrong. In reality, everything is working exactly as intended.

Jonathan Corona ·
opinion

What Federal Age Verification Could Mean for Adult Websites

Our industry has grappled with a patchwork of confusing and burdensome state age verification laws for the past couple of years. But that landscape could change quickly after the House passed the Kids Internet and Digital Safety (KIDS) Act (H.R. 7757) by a vote of 267-117, marking a significant federal step into this space.

Lawrence G. Walters ·
opinion

The Website Footer Requirements Every Adult Merchant Should Know

Since I started in this business 25 years ago, I've watched website footers evolve from a simple collection of links designed to help with SEO into important tools for meeting compliance and regulatory requirements, improving the customer experience and reducing chargebacks.

Cathy Beardsley ·
opinion

Why E-Payment Diversification Matters for Merchant Stability

Match payment methods to your customers. Look at where your customers are located, how they prefer to pay and which products they purchase. A business with significant European traffic may benefit from SEPA or Pay by Bank, while a subscription-based business may prioritize ACH or cryptocurrency. Add the payment methods your customers are most likely to use, as not every option is available.

Jonathan Corona ·
trends

AI at Work: The Tools and Practices Powering Creativity, Commerce and Compliance

For years, artificial intelligence felt like the plot of a science-fiction movie. Pop culture gave us Skynet from “The Terminator,” the replicants of “Blade Runner” and countless visions of machines replacing human creativity altogether. AI was cast as either humanity's next great breakthrough or the beginning of a dystopian future.

Jackie Backman ·
opinion

Key Questions Online Merchants Should Know About PCI Compliance

Choosing a payment provider involves more than comparing features and pricing. It's also about trusting that your customers' payment information is being handled securely. Every August, Segpay is recertified as a Level 1 PCI-compliant service provider, a milestone the company has achieved for the past 20 years. Having helped write Segpay's original PCI policy documents more than two decades ago, I've seen firsthand how PCI compliance has evolved.

Cathy Beardsley ·
Show More