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