Originally Posted by
Genetic
There seems to be a component of this that you're not quite getting and I'm not sure why. If we simplify it and break it down hopefully it'll make sense -
1. I set up 30 tube sites with content stolen from premium sites.
2. Users start uploading to my tube sites.
3. My sites then start to get hits of around let's say for argument's sake 1 million each site per month.
4. Each advertiser pays half a cent for each hit and I have 5 advertisers on each site. 5 advertisers x 1 million hits x .5 cent = $250,000. Multiply that by 30 sites and I'm now making $7.5 million per month.
5. The sites I'm stealing from start to lose revenue because I'm giving their content away for free.
6. I start setting up online dating sites, mail order stores and other misc businesses. This gives me further profits while the sites I'm targeting are starting to struggle.
7. I then start buying my competition because their business model is no longer profitable. They can't generate new content and charge for it cause I've been stealing it and so it has no value.
8. I remove all that site's content from my tubes and start advertising the pay site on all the tubes. With exclusivity restored, the value of the pay site's brand goes back up.
9. People will start to go to the pay site if they cannot get what they want for free. Sounds ridiculous but it will happen especially if I put truncated scenes in low res on my tube sites.
10. Rinse and repeat.
Now those figures are all invented and oversimplified but that is essentially how it works.
While there are a lot of tech savvy people who will go and torrent porn or visit tube sites, there are still huge numbers of people who are very paranoid about getting "porn advertising viruses" etc on their PCs and will use pay sites rather than torrent. The whole thing is basically tricking your customers into thinking they have free choice and that they can get things for free when in reality, everything they do is putting money into your pocket.