There are several interesting elements at play here. Number one, if you want to make money in porn, you either shoot premium content with quality performers, locations and make up talent, or you carve out a unique niche. Jules fills the first market, Jeff fills the second.
If you're not aiming for either of those two targets, then you're making subsistence porn and earning < six bucks a unit wholesale.
Re-orders are the lifeblood, no doubt, and like DanG says, quality product has legs. Once we really start getting into IPTV and VoD as the consumers' first choice for buying, and ditch pressing, packaging, wholesale and retail cuts, it'll be really interesting to see just how the market reacts and what sort of content sells.
JRV, I'm with you on the directing talent front, and I'd go further than that. I was re-reading Shane Bugbee's Club Satan thread the other day and he states in there that he made the film 'for himself'. We're seeing way too much of that today--producers who shoot what they'd want to see instead of what the market demands.
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I also am subcribe to postal pornography - CAOH