Stevie, you can start by doing a search on "porn economics" or "VOD".

I don't think Videobox has had any effect on the market whatsoever. Most adult customers rent rather than buy, so Netflix type set ups just change who they are renting from. The bigger force has been the failure of adult companies to embrace video on demand and other internet delivery technologies. I can personally tell you I have not bought or rented an adult movie from a store since 1999. Everything comes from a VOD distributer like Gamelink or Empire. If I can order something online, why would I go toa store? The product is mostly funglible anyway. When a movie I want to see is not available on VOD, I'm not motivated to go to the store or wait for a disk in the mail. I just get something else that is available on the net and the producer of the film I wanted to see loses out on a sale.

If VOD was truly embraced by adult companies they would be growing their business instead of shrinking. VOD opens foreign markets to american porn. So, you can reach at least a billion more customers, and probally more like two Billion. I could write on this for pages, but like Conky said, we've discussed it for the past six months.