Tough times in the porn industry - Los Angeles Times
"The death of the DVD business has been more accelerated in the adult business than mainstream," said Bill Asher, co-chairman of adult industry giant Vivid Entertainment, who estimates that his company's revenue is down more than 20% this year.
"We always said that once the Internet took off, we'd be OK," he added. "It never crossed our minds that we'd be competing with people who just give it away for free."
There are plenty of other signs of the porn industry's pain. Attendance at the Adult Entertainment Expo, an annual trade show in Las Vegas that's open some days to the public, was down 20% this year. Pay-per-view programming, a key revenue source for the industry, has fallen about 50% from its peak three or four years ago, according to a person familiar with the cable and satellite TV business.
Great commentary on this from Violet Blue over at her NSFW blog