The internet has enough free porn for you to watch until your dying days, without ever having to view something twice. Yet, the top online porn website Pornhub wants to charge you money for it’s premium content.

It sounds crazy that a company would try to sell a porn subscription, especially since you have an unlimited amount of porn available for free.

But Pornhub and it’s parent company, MindGeek, realizes that a small percentage of their viewers converting to a paid subscription will generate a massive fortune in revenue.

Created by Matt Keezer in 2007, Pornhub is now under the MindGeek corporate umbrella, which is run by Stephane Manos and Ouissam Youssef per Wikipedia. MindGeek owns and operates a half dozen porn production studios such as Brazzers, Digital Playground and Reality Kings as well as free aggregator tube sites Pornhub, YouPorn and Redtube, controlling most of the production and distribution of porn in the United States.

Essentially they have a monopoly on the porn business.

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Let’s think about the numbers.

Pornhub generates approximately 630 million visits per month (per similarweb.com) which ranks their site as one of the 100 most viewed websites in the world.

If only 5% of their viewers converted, that would bring in over $300 million in additional revenue EVERY month to this privately owned company.

What does this all mean?

They’re using one of the most basic formulas for online business.

Step 1) Create an audience.

This is generally done by offering something for free. PornHub did this through their free porn videos, which have been around since 2007.

Step 2) Sell them something.

Pornhub Premium.

In modern times, it’s harder for indie porn companies to make money

PornHub’s monopoly has made it very difficult for newer players to enter the game.

In the past, you could open up your indie porn company and make money selling DVDs and premium content. But DVD sales now are almost non-existent. Pay sites still exist, but most of them are actually owned by PornHub.

Without a budget, it’s difficult to match the quantity or quality of a site like PornHub. Why would a consumer pay for your site when it can access 100 sites for the same price? Even worse, why would they pay for your content when they can just view it for free on PornHub?

PornHub will make money on your pirated video through advertising, but you won’t see a penny. You can ask for the videos to be removed, but that takes time and money, and DMCA laws protect companies like PornHub that have user generated content.

To survive, many creators were forced to work with the tube sites to make money, essentially offering their videos for free in exchange for converting a few freeloaders into paid members. Either way, their content was going to be uploaded illegally.

The result was that most porn companies had to quit the business or get bought out by PornHub.

Bottom line, it’s a lot more difficult to make money in porn.

What’s the future of porn monetization?

Innovation is key. That’s why PornHub Premium is probably going to make a ton of money.

But you might ask, “What’s the difference between regular porn and premium porn?”

Per Pornhub, the premium service will provide an ad-free experience, faster playback, and higher quality streaming for the millions of videos including exclusive full length HD adult titles available in crisp 1080p resolution.

So Pornhub tantalizes the audience with more honey, and in their case, the “virtual reality” experience they plan to roll out at the start of 2016.

They told VentureBeat that they would foremost be supporting the Oculus Rift headset because of its brand recognition. “The device’s gyroscope, magnetometer, accelerometers, and 360-degree field of view will all play into the porn experience ideally,” stated Pornhub vice president Corey Price.

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With access to headsets such as Oculus in the future, virtual reality will soon become the best option for the individual’s online porn viewing experience and they’ll make sure everyone knows it.

With tools like the male sex toy Tenga, soon you can experience real sex with a porn star. Now that’s something that many MANY guys are going want to pay for.

Furthermore, in this day and age porn has become much more interactive. Webcamming and personal 1-on-1 interaction between fans and porn stars is the future of porn monetization. If you’re looking to get into the porn biz, look into these industries (as well as virtual reality sex).

You once had to pay for porn, then you got it for free.  Now, you’ll get it for free and end up paying for it later.

It’s just business.

Source:  National Post