Here's my take on it...
Some newbie porn chick comes onto the scene and sets her rate at $1000 a scene. Even if she shoots 3 scenes a week for an entire year it's only $156,000. Now, we all know that the newbie chick isn't going to shoot that many because after her novelty has worn off, her bookings are going to start dropping - because she's over exposed.
Meanwhile, I'm reading that guys like COHF, and God bless them, are raking in a cool $1 million dollars a year from operations. It's hard for me to be sympathetic to the million dollar man when some newbie chick is going to have to take two or three 10" cocks up their ass at a time for a year to rake a whopping $156K.
Now, if there is a profitability problem with producing adult videos, I blame it entirely on the studios for over-exposing their product via VOD, particulary the pay-per-minute variety.
Here's what I'm talking about... Joe Blow, the porn consumer, joins a pay-per-minute website and bankrolls his account because he's too cheap to spend $20 on a title when he can get off much cheaper online. The 'VOD provider' holds on to Joe Blows money, metering it out to the studios as Joe is burning minutes at 8 cents each.
Joe wants to get the most bang for his buck, so he's getting off as fast as possible - let's say in 5 paid minutes. So, Joe gets off for a mere $0.40 - out of that the studio sees only $0.28 (based on a generous 30/70 split with the VOD provider).
Meanwhile, the studio is shooting at least 2 new videos a month at a minimum cost of $1000 a scene - based solely on Newbie Chick's rate. Based on the VOD payout, the studio has to reach over 3500 Joe Blows to break even on the scene, where they only have to reach 200 of them to break even on any particular scene if its sold as a complete scene or packaged on a DVD.

So if studios want to start making money, they have to stop authorizing their content in pay-per-minute venues and bring all VOD operations in house. ***Which is something I tried to tell the studios when I was in VOD*** That being said, I'm sure my perspective doesn't make somebody who's revenue has dropped over the summer feel any better.