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.