"Why buy it when you can get it for free on the Internet," says Luke Ford, an industry gossip columnist, comparing pornography to the plight of newspapers losing readers to the Web. "There is less and less reason to pay for porn because there are plenty of free two to three-minute clips out there."


Sources: ABC News, lukeisback.com

This should get something started.

If its a competition between ANYTHING on the internet and having to get up and go to a store. The internet is going to win. The fact that 10 years into the internet adult companies are still delivering product by DVD is retarded. The fact that scenes are released on DVD first and then VOD is also retarded.

Only porn could have a customer base of primarily addicts and not realize that giving them the option to hook up their cc and recklessly order scene after scene after scene might be slightly profitable. Its like if the Casinos were to eschew internet gambling.

I wouldn't want to be a DVD replicator right now, that's for sure.

This topic seems to be a non-controversial one. Is it because nobody knows what you are talking about? Or is it because everybody except me knows what you are talking about?

If you are a producer, how do you get your content out on VOD? Do you have to make deals with cable companies or satellite operators? Where do you start?

Unless I have completely missed the boat, the VoD that they are talking about is internet based.

While I have not subscribed myself, I believe you can pay to watch a film over a # of days, pay to watch a particular scene and/or pay to watch per minute.

It all depends on the provider you are using.

But this is likely best answered by "The VOD Guy".

Im not an expert, but here is my educated guess. The way things are right now, the porn companies make most of their money from distributors. Now even though, the distributors mark up the dvds before they sell them to the stores who mark them up again, and the amount of money they receive is about 25% of what they make if they sell it direct, they sell so many copies(10's of thousands+), that it is their cash cow. I think that the only real way they will shift their focus to vod, is when the distributors stop buying their product in HUGE quantities. Its the old "if it aint broke dont fix it" theory. Although dvd sales are down, I think most companies prefer not to take an unknown risk and ditch dvd, for vod. Ive noticed that a lot of new and/or amateur companies are doing a lot with vod. I guess this is because they dont have distributors. One other thing to remember here. There are still millions of dirty old men who know nothing about the internet, and dont want to learn. There are also millions of men, who dont want any trace of their activities on credit card statements, internet histories, etc. These people will ALWAYS pay cash at a store for their porn. While the VOD and internet sales will slowly increase over the years and the stores and their dvd sales will decrease, both will always remain, neither being eliminated.

Hollywood studios in video talks with Apple
By Matthew Garrahan in Los Angeles
Sunday Jun 10 2007 17:15

Apple is in advanced talks with Hollywood's largest movie studios about launching an online film rental service to challenge cable and satellite TV operators.

The service could be significant for Apple. If it signs enough studios, the group will get access to more premium film content.

Apple already sells films that can be downloaded and owned, and has distribution deals with Walt Disney and Paramount. Other studios have shied from tie-ups with Apple because of concerns that digital downloading may hit DVD sales.

But studios will be more enthusiastic about joining its video-on-demand service. Films downloaded to rent are unlikely to affect DVD sales.

Apple, which declined to comment, is believed to be aiming for an autumn release.

A film would cost $2.99 for a 30-day rental. Its digital rights-management software would allow films to be moved from a computer to at least one other device such as the video iPod or iPhone. The software would prevent movies being copied.

One studio executive said the service would "compete against cable companies and anyone else offering VOD into the home".

VOD is a growing revenue stream for cable companies, such as Comcast (NASDAQ:CMCSA) , and satellite operators, such as DirecTV. Online services also offer VOD, including Microsoft's Xbox Live, Movie­link and Unbox, a joint venture between Amazon and TiVo.

However, none of these has a customer base as large as Apple.

Sony Pictures Entertainment, 20th Century Fox, Paramount, Metro-Goldwyn-Mayer, Warner Bros and Disney declined to comment. Privately, though, the studios are excited about Apple getting into VOD. "When you think about Apple customers they are so connected to the brand they will try anything to do with it," said one senior studio executive.


Apple aiming to tempt traditional TV viewers
By Aline van Duyn in New York
Wednesday Mar 21 2007 13:50

Millions of video clips are available for viewing free on the internet, through video sharing sites such as YouTube or MySpace and hundreds of other websites.

Yet the appetite for watching traditional television does not appear to be waning. Nielsen, the media research company, released a study this week showing that the average US home now receives a record 104 television channels, eight more than a year ago.

The actual television set itself is also featuring more prominently than ever before: the average US home now has more televisions than people, according to Nielsen, with 2.8 sets compared with 2.5 people.


Connecting the 110m US households that watch television with the hundreds of channels that they increasingly demand is a hugely profitable business for cable and satellite operators, such as Comcast Corp (NASDAQ:CMCSA) , Time Warner Cable and DirecTV.

However, there is a question whether the imminent introduction of Apple TV – potentially the most user-friendly device yet to allow people to set up a wireless connection between their television and computers and watch video content stored on their hard drives – could undermine the business of cable and satellite operators.

"It [Apple TV] isn't the first attempt at solving the 'last 10 foot problem' of connecting the PC to the TV but in light of Apple's track record with music it is likely to be regarded as the most credible," says Douglas Shapiro, analyst at Bank of America.

Yet to have any impact on the business of providing multi-channel television, such online video needs to be a replacement for the services offered by cable and satellite.Operators are increasing choice for the viewing public by making popular programmes available on-demand.

Also, in the US the growing use of digital video recorders means people can easily record favourite programmes and watch them when they want.

Indeed, the focus is on providing more high-definition channels to allow the growing number of people who are investing $500 and more in top-range, flat-panel televisions to watch high-quality content. In contrast, internet videos, such as that on YouTube, are generally of relatively poor quality, and short in duration.

The Apple TV does not offer unlimited access to video on the internet but instead mainly allows users to watch content stored on Apple's iTunes online music and video service. As a result, Mr Shapiro says it is a "supplement to traditional pay-TV: it isn't a threat to cable or satellite within a reasonable investment time horizon".

Indeed, large cable companies such as Comcast have stressed that the growing demand for internet video is good for them, not bad, as it is one of the factors fuelling consumer willingness to pay for faster broadband connections, many of which are provided by cable operators.

For the media and entertainment companies that make movies and television shows, the introduction of Apple TV and other digital outlets is also increasingly being regarded as an opportunity to make more money, not less.

Beth Comstock, president of digital media and market development at NBC Universal, said even a year ago there was a concern that digital distribution would eat into television audiences.

"Growth [of digital businesses] is not at the expense of TV audience," Ms Comstock said. "The internet does not cannibalise our TV audience, a fear we had even a year ago. We find it reinforces and actively builds brands."

Apple's iTunes service is already one of the most popular ways of watching professionally produced video content on computers. Many media groups are licensing their movies and shows to iTunes, and people are paying to download them.

Yet in terms of concrete revenues, these distribution methods are barely significant relative to the large amounts generated from cable and satellite operators and the sale of DVDs.

Ms Comstock herself is charged with ensuring that NBC Universal generates $1bn of digital revenues by 2009. Although significant, even such an ambitious target compares to total revenues last year of more than $16bn.

The real loser of a successful Apple TV launch could be DVD sales and rentals. "Efforts to connect the PC to the TV, particularly Apple's, could eat into the home video rental or DVD sales pie," says Mr Shapiro.


Comcast hails US video-on-demand trials
By Aline van Duyn in New York
Thursday Apr 26 2007 13:56

Comcast (NASDAQ:CMCSA) , the biggest US cable operator, on Thursday reported success in early trials to make movies available through on-demand downloads on the same day as they are released for sale on DVDs.

The trials, which are taking place in Denver and Pittsburgh, include movies from seven studios: NBC Universal, Warner Brothers, Paramount, Disney, Fox, Lions (NYSE:LGF) gate and New Line Cinema.

Comcast said its revenues from pay-per-view movie downloads had grown steadily in the past few quarters. For the first time the company released specific information about this segment, saying that, in the first quarter of the year, pay-per-view revenue was $181m, up 26 per cent on the previous quarter.

"The trials show an increase in purchasing of movies," said Steve Burke, president and chief operating officer at Comcast. He said the service, with movies priced at $3.99, would be extended to at least one other city and could be made available to all of Comcast's customers.

The trials, which started a few months ago, are part of Hollywood's efforts to find new ways to distribute movies digitally.

The profit margins of digital distribution - either through cable companies or the internet - are higher because there are fewer costs but there are concerns that these new methods might eat into other source of profits such as DVD sales or movie sales to television networks.

Although there are efforts to build up distribution of movies online, there are concerns about piracy, which is less worrying when distributing on a closed system like a cable network.

Comcast itself is also moving into online video distribution, recently acquiring movie information site Fandango.com and announcing plans for a site to distribute professionally produced television and movie content on the web.

As well as selling cable television services, Comcast offers high-speed internet connections and telephone connections, and demand for these has soared, especially as Comcast offers broadband speeds which are faster than some telecom offerings.

"Cable is now unmistakably regaining market share [from telecoms rivals] in broadband," said Craig Moffett, analyst at Sanford Bernstein.

Specifically, Comcast, increased its quarterly profits by 80 per cent to $837m (including a one-off $300m gain from the dissolution of a cable partnership), and saw revenues increase by 32 per cent to $$7.39bn.

Source: Financial Times


Sorry... I know it's a long post but I couldn't help it. Please don't hate me...

One additional point. VOD sites can apparently be accesed overseas. So you increase your potential market base from the US/Canada (500M) to US/Canada & EU (1.2B). Ignoring VOD means ignoring the overseas market as well. Once again, porn companies are employing retard economics.

A more dignified way of jerking off?

if i'm not in some state of transit, the smallest display my eyes touch is the 30" apple.

The exodus to porn viewing online has been accelerated by more broadband users shunning DVDs and pay-per-view TV in favor of PC screens, says Dennis McAlpine, managing director of media researcher McAlpine Associates. Changes in viewing habits have forced industry heavyweights to dramatically alter how they deliver content, he says.

Vivid Entertainment Group, Hustler and Extreme Associates are rushing to offer movies on the Internet before they are available on DVD. Vivid is set to release its first video-only movie in July. And retailers in the shrinking $3.6 billion DVD market, such as HotMovies.com, are beginning to sell video downloads.

Hustler runs 15 websites, many recently redesigned, and plans to add more sites with exclusive video and photos, says Michael Klein, president of its Broadcasting, Internet and Video Group.

Steven Hirsch, co-chairman of Vivid, one of the world's top adult film producers, predicts DVD sales will largely be replaced by content sold on the Internet. Three years ago, 80% of its revenue came from DVD sales. Now, it's 40%, he says.

USA Today