opinion

A Business Slowdown?

Recently, XBIZ World magazine asked several industry players, "Is the industry experiencing a downturn or is it mostly perception?"

Here's what they had to say:

Provided there isn't a huge economic downturn that I'm unaware of, I'd venture to say that it is mostly a perception that industry-wide revenue is down. While revenue is down in certain areas, it is up in others. Brick-and-mortars are probably feeling the biggest hit, and studios reluctant to change with the times seem to be folding or joining forces with other, stronger studios and distro companies. Meanwhile, other studios and companies seem to be benefiting from newer concepts like online rental and VOD. This is the future, and our modes of delivery are undergoing changes far more dramatic than the film-to-VHS-to-DVD shift.
— Justin Brand, Content Manager, SugarDVD.com

I think it's perception – industry- wide there is more competition, more content delivery methods and more means of revenue. The industry has been and will continue to grow. Always adapting to change and innovation is most important, however supporting the growth of free content distribution (torrent sites, tube sites, etc.) is probably not the best direction. While it can be great for branding and reaching a wide market, with the fast-growing amount of free content available it comes to a point where we've got to stop and think about the old saying, "Why buy the cow when you get the milk for free?"
— Monica, Affiliate Manager, HotMovies.com

I see a lot of changes happening within the market. I don't see a downturn. The DVD market is shrinking, but the online market is expanding. There are new players and new money entering some areas of the market, while several mainstream segments have reached saturation. The whole industry seems to be in flux right now.
— John Sander, Director of Marketing, Kink.com

I believe that is the perception, although I also believe it is wrong! There is the same number of surfers out there and while the economy may have a little negative impact on spending, there are still more and more users coming on. What you are seeing, however, is more sites, more new products and more competition. So if the webmaster isn't constantly upgrading their sites, and adding in more fresh and unique content, then the surfer has too many other places to go. I wonder if a lot of webmasters forget the No. 1 rule: It is easier and less expensive to sell to your current members than it is to get new ones.
— Craig Tant, Marketing Director, MooCash.com

I would definitely say that the industry is in a downturn in terms of industry-wide revenue. Affiliate software programs such as NATS make it simple for anyone to open an affiliate program – but the tough part is making money with one. The key to running a successful affiliate program is to have a sound business plan and stick to it. You have to treat your affiliates well and provide them with quality sales tools and content and do everything you can to make your sites convert and retain. You also have to keep the members happy, as the competition is stiff and surfers have so many choices of places to spend their money – if they do spend anything, considering the glut of free porn and torrent sites available these days.
— Greg Parsons, Owner, SlickCash

Related:  

Copyright © 2024 Adnet Media. All Rights Reserved. XBIZ is a trademark of Adnet Media.
Reproduction in whole or in part in any form or medium without express written permission is prohibited.

More Articles

opinion

Best Practices for Payment Gateway Security

Securing digital payment transactions is critical for all businesses, but especially those in high-risk industries. Payment gateways are a core component of the digital payment ecosystem, and therefore must follow best practices to keep customer data safe.

Jonathan Corona ·
opinion

Ready for New Visa Acquirer Changes?

Next spring, Visa will roll out the U.S. version of its new Visa Acquirer Monitoring Program (VAMP), which goes into effect April 1, 2025. This follows Visa Europe, which rolled out VAMP back in June. VAMP charts a new path for acquirers to manage fraud and chargeback ratios.

Cathy Beardsley ·
opinion

How to Keep Meta From Derailing Your Social Media Campaign

The heavy hand of Meta can be both unforgiving and unpredictable. Profiles that Meta decides have violated its platforms’ terms may find themselves on the receiving end of punishments — including the dreaded “shadow ban,” which can be damaging for a brand’s social media campaign and strategy.

Scarlett Ward ·
trends

Pleasure Biz Mainstays Reflect on Decades-Long Careers, Share Advice for Up-and-Comers

“If you do what you love, you’ll never work a day in your life.” That saying definitely holds true in the pleasure industry, where many executives build careers that exceed a quarter century.

profile

WIA Profile: Melissa Fite

Though she works behind the scenes, Melissa Fite has a bird’s-eye view of the pleasure products industry. As the marketing coordinator and junior graphic designer at XR Brands, Fite gets an intriguing overview of the latest consumer trends, plus an exciting sneak peek at XR’s newest sex toys before they hit the shelves.

Women In Adult ·
profile

Distribuciones-BES Spreads Pleasure Brands' Reach Across Mexico

It’s time to brush up on your Spanish, sex toy manufacturers. The Mexican market is thriving, and the country’s distribution and retail businesses are eager to forge new connections with brands from around the world.

Colleen Godin ·
profile

YCosmetics Founder Tess Finkle Talks Messaging Behind 'If I Say Yes' Brand

Over the past few years, sexual wellness brands have gained much prominence in the digital space. YCosmetics, which released its flagship If I Say Yes collection earlier this year, is vying to become the next intimacy and skin care brand to gain a dedicated online following.

Nishka Dhawan ·
opinion

Promoting the Link Between Men's Mental Health, Sexual Wellness for Movember

As Movember rolls around each year, men across the globe grow mustaches to raise awareness of men’s health issues and help men take control of their mental and sexual health.

Ian Kulp ·
opinion

Smart Commerce: How AI can Take Retail Operations to the Next Level

In my last article, I discussed how AI is not just “on the horizon” for small-to-midsize retailers — it’s barreling toward us in a big way. I stressed the critical need for data integration as the foundation for AI to truly optimize retail operations.

Sean Quinn ·
profile

WIA Profile: Siren Obscura

Siren Obscura grew up in Arizona, surrounded by rugged beauty and desert landscapes that she describes as having a quiet power to them. That environment strongly shaped her appreciation for contrasts and natural light, which plays a significant role in her work today.

Women In Adult ·
Show More