HOLLYWOOD, Fla. -
Web, video-on-demand and pay-per-view TV have heated up
recently, and an increase in demand for quicker, more
discreet delivery of satisfying content has forced the adult
industry to develop more innovative, multi-method
distribution models. Older models traditionally were based on
the distribution power of adult-DVD Internet sales sites,
select DVD distributors and in-store rentals. However, with
the arrival of Internet VOD, the industry has transcended the
old model, moving into a new era of direct marketing.
"My business is hard physical goods, which could be
considered a shrinking market," said Anh Tran, co-founder and
chief executive officer of WantedList.
"Customers can now acquire adult product more quickly over
the Internet and more anonymously. There has been a decline
in the DVD market with VOD, but DVD has a decent life
expectancy. There are two kinds of consumers: the Internet
porn aficionado and the DVD fan who likes to collect actual
physical product."
Mark Kulkis, president of Kick Ass Pictures and its affiliate program, agreed. "DVD and video stores have suffered the worst in light of these new distribution models and consumers' need for privacy," he said. "I think DVD will be around for a good while, and with the advent and proliferation of [high-definition] DVD, it will further that life expectancy. Nevertheless, it doesn't hurt to plan for the future."
As it turns out, cable TV services have anticipated where the market is going and have joined forces with the Internet to create Internet-protocol television, or the ballyhooed IPTV. Some cable companies have launched the new distribution model in an attempt to keep up with the times and exhibit Internet savvy.
Despite changing modes of delivery, the real challenges remain targeting niches and getting people what they want more quickly.
"Targeting specific niches and delivery of content to customers is key," according to HotMovies' James Cybert. "Make your content stand out, try to tell people what studios are producing and get people to participate and tell you what they want."
Ever the technology evangelist, Tranh noted the adult industry is growing up technologically and promises to spread the gospel of new distribution models with the incentive of increased wealth. "We [as an industry] have to prepare for the future with a new model, and we will," he said. "Models change, people change, but people will always find the best delivery process necessary to get porn."
