The first of three panels discussed the increasing ascension of tube sites, both legal and illegal. The overarching point was that since tube sites are here to stay, how can content producers monetize this new distribution platform?
The session was moderated by XBIZ seminar coordinator Tom Hymes and featured XXXJay of OC Cash, Stephen Yagielowicz of XBIZ World, Brandon Shalton of T3 Report, Raja from Click Pink Media and Brad Estes of VideoSecrets as panelists.
The panel kicked off with a discussion of illegal vs. legal tube sites. Hymes described the platform as “an MGP on steroids,” and the panelists agreed that the illegal tube sites feature material uploaded by users – in other words, people who don’t have the distribution rights to the content. All felt that the distribution model itself – YouTube.com style sites featuring video clips of varying lengths – weren’t the inherent problem, but that illegal content distribution was the culprit.
“First TGPs were going to kill the industry – now it’s tube sites,” Raja said. “One of the big problems is that tube sites classify themselves as ISPs so they can’t be held responsible for user uploads. The tube sites claim they can’t police their sites because then they could be held responsible for illegal uploads.”
Yagielowicz echoed the panel’s sentiments that it’s not the distribution method’s fault people are abusing it. Shalton said that content producers are in a position to take advantage of the delivery method.
“As primary producers of adult content, you can take advantage of what a tube site offers, namely that they are huge aggregators of traffic. Watermark your content and upload short clips to tease the viewer.”
But now that the viewer has been aroused, will he buy that product, or another product from the same company? XXXJay claimed that tube sites are great for eyeballs, but don’t lead to upsells. He recommended to stop supporting companies that advertise on tube sites.
“All those bullshit cam and dating sites that support piracy by advertising on tube sites, stop supporting these scumbags and thieves,” he said. Jay related a story of a scene he saw on a tube site from one of his paysites that hadn’t even been posted yet. He discovered a leak in the editing room.
Shalton lamented the diminished influence of the affiliate model as a result of tube sites.
“Unfortunately the affiliate is the one who gets squeezed out,” he said. “Surfers aren’t going to there sites because they go right to the tubes. “
The second panel engaged the audience in a discussion on the future of content delivery. Featured on the panel were Digital Playground’s Farley Cahen, World Wide Content’s Raffi Vartanian, TopBucks’ Allison Vivas, VideoSecrets Greg Clayman and was moderated by Wasteland.com’s Colin Rowntree.
Right off the bat, Vivas asserted that it was necessary for all content producers to encode their video in all formats for ease of access for the end user – Flash, MPEG4, Quicktime, Windows Media, mobile delivery and hi-def formats.
Cahen advocated Digital Playground’s position to “just produce the best content possible” and then make that accessible on all delivery platforms.
“It’s important to note that the features we make need marketing support,” Cahen said of the DP’s latest blockbuster, “Pirates II: Stagnetti’s Revenge.” Digital Playground employs and aggressive “ground game” of promoting their products to rise above the din of DVD releases. The movie recently received an R rating and will be in mainstream video stores like Blockbuster Video at the end of the month.
Vartanian of content licensor World Wide Content said that Internet users want “more, cheap” alluding the to notion that all the free porn on the Internet has spoiled the new generation of adult consumers.
The panel seemed to agree that DRM wasn’t the answer because it’s too much of an impediment for surfers.
The XBIZ State of the Industry seminar sessions concluded with a heavy-hitting panel of industry leaders assembled to discuss future technology and delivery methods. AEBN’s Scott Coffman, Hustler’s Michael Klein, Digital Playground’s Joone, VideoSecret’s Greg Clayman and moderator and XBIZ President Alec Helmy comprised the esteemed group.
“I’m most excited about convergence,” Clayman said. “Having an all-in-one TV that can stream content through an Internet connection is the future.” Going a step further, as a live content provider, Clayman hoped the user to one day soon be able to direct their own live video through this delivery system.
Coffman said that the next step is increased interactivity. His company has made that leap with the Real Touch, a sex toy for men that mimics and synchs up with the action on the screen enabled the viewer to actually “feel” what’s happening on-screen.
“The bottom line is that it’s more expensive to acquire a customer than to keep him,” Joone said, “so you have to keep them hooked with high-quality content.”
Coffman addressed the prominence of tube sites calling them great traffic aggregators but poor models for content producers to profit. “They really don’t care about selling, or upselling, a product,” he said. “They just want you to click on the ads.”
Clayman’s live content based business model puts his company in a position to not be affected by tube sites as much as others. “The live business is holding strong – it cannot be pirated,” he said.
But why buy the cow when you can get the milk for free. Joone said it best.
“Water’s free, but people pay for it in a bottle, right?” he said. “The lesson is that quality content always wins out.”
