Here's the problem with the $0.99 iTunes model.

It's called bank service charges. They run anywhere from $0.15 - $0.30 per transaction plus 3-5%. That means a movie/clip that runs $0.99, nets you $0.81 before you've covered the even the bandwidth and sent a reasonable royalty over to the studios. Even if you break out movies per scene, what studio wants to earn $0.10-$0.20 a scene?

As it winds up, the banker makes all the money. And, I know you guys don't want to throw even more money into some asshole bankers pocket.

Also, been there done that. We canned mpegster.com, where people paid $4 - $5 only when they watched a movie, because bank charges ate up all the profits AND when you throw in a $30 chargeback fee on a micro-charge, you're screwed.

Remember, porn isn't iTunes. They probably get 1/2% chargebacks, where Joe Blow will download everything you have and charge it back with his credit card company. For that reason alone, you can't go the $0.99 route.