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This is more then just a shift from DVDs to the Internet. What has happened is a fundamental change of the market when it is no longer possible to simply sell collections of porn scenes for money. People can get all porn they want from the tube sites and other pirate sources for free.



Crocodile is correct...in a piracy-free world, the internet would still take a chunk out of the DVD market simply because it offers various things that some consumers prefer.

It's instantaneous (no driving to the porn store or waiting for the postman to deliver your order) and there is no physical product to store/hide unless you choose to create one yourself by burning it onto disc. The efficiency of the internet business model also means that various way-out-there niches can be explored and capitalised upon, whereas it's a lot harder for everyone in the physical DVD production and distribution chain to take chances when they know they could be stuck with 2,000 copies of something they can't sell. Newer business models, such as those employed by sites like Clips4Sale, further serve to make micro-niche experimentation relatively risk free for all involved.

However, in the real world, piracy is clawing a chunk out of both markets, and thus DVD is on the receiving end of a double whammy from both legitimate and illegitimate competition. It's the proverbial one-two sucker punch that has put the physical medium/business model on the ropes, figuratively speaking.

I stand by my contention that porn is more popular than it has ever been, but the problem remains how to capitalise, or more appropriately monetize, upon this newfound ubiquity. As of now, the industry certainly hasn't got to grips with it yet.