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I seem to recall saying this a few months ago and you said it wasn't a good model cause people could join for $30 and rip hundreds of scenes to their computer.




If I were running some big companys distribution I would follow a hybrid Hollywood/cable network distribution model. First I would terminate all VOD/online contracts. Then I would create various web "channels" based on the type of product and I would distribute to retail first (since porn has no real theatrical release), then I would use the web channels to pump the living shit out of the retail releases for the first 30 days with massive teaser "infomercial" play along with "the making of" videos. Next, I would integrate in programming to sell direct to consumer and full length movies after they have been on the shelf for 60-90 days.

Here's the logic. You ship to retail first, pump releases (with full disclosure to retailers as to what you are doing) to get customers into retail. Moving more product at retail gets you bigger orders AND better shelf space, which in turn helps you move more product. Once retail sales start to drop on a product, you go direct to consumer online to make your library keep paying. The online releases, months after they hit the retail shelf, just extend library sales. You remove the middle man doing VOD, stop cannibalizing your retail and direct to consumer sales, and you start making a hell of a lot more money because your product is controlled.

Now for a commercial announcement... Any studio that wants to hire me as a consultant to retool their distribution as outlined to maximize revenue can contact me.