In a recent Discussion with Skeeter Kerkove Gene Ross reveals that DVD sales are tanking. If adult companies are experiencing a slow down due to a drop in DVD sales, they have no one but themselves to blame. Have these people never heard of the internet? I'll bet that VOD sales are not down. The addiction of producers to DVD is going to have to be broken and internet distribution embraced if producers want to see their financial misfortunes reversed.

I can only speak from personal anectodes, but I have not purchased a DVD this century. However, I have hundred's of VOD's with Gamelink and Empire and have several internet content subsciptions. With the ease of access and lower per scene cost I own a lot more adult content than I did under a DVD format. If adult companies are not making MORE money today, well they're just not trying.

So what explanains the crack like addiction for the DVD format? The only thing I can muster is that video rental stores and their distribution channels are guaranteed to purchase a certain amount of product and those relationships were profitable. Obviously, the distributors had a big say over what content got made. Now adult companies have to sell directly to the consumer and that must scare the hell out them because they have ignored what the consumer wants for years.

Make no mistake, adult companies need to run to an internet/vod distribution system. Those that do will have instant feedback on what and who sells and can pattern their production to that. They will have lower distribution costs and they will need MORE product to satisfy the fact that consumers buy more porn under an internet distribution sytem. Those that stay with the old DVD distribution system will become extinct. This isn't really economics, its evolution.