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Diary Of A Madman

The rantings and raves of a Madman in the globally connected digital world.. join me in a journey into the wireless ethernet...

PORN - is it really a dirty 4 letter word?

** Warning ** Just to point out and to mention - that the site(s) and topic that is being discussed below - if anyone does decide to review any of the content mentioned in my post below - be aware that the sites do show scenes, images and videos of very graphic and explicit adult nature ** You have been warned Wink

NO!

However when 6 grown men start talking about the Porn industry - you don't half get some funny looks from people - even when your discussing it in Vegas!

So why were 6 unkempt men in long stained overcoats talking about the Porn industry? (by the way - any double-entendres are purely coincidental!)

Well the Porn industry is where most of the best e-commerce billing engines are, some of the most secure and locked down "members areas" and the reason why we were talking about this industry: Business Models & Video Streaming.

Perhaps due to it's very nature, the Porn industry gets a hard time of it (steady now..)  - but you look at the growth of Facebook and you think wow that is valued at $xBillion... - but you take a look at something like YouPorn - and suddenly the traffic values almost double that of Facebook - and is one of THE fastest growing websites in the world today. It is a social site where users upload their videos - and other users can comment and rate the videos of the fellow amateurs. It has some of the biggest unique visitors in the world that most business can only ever dream of - and has some nice touches around the flash movies that it previews and delivers.

However it does have some real business challenges - the amount of bandwidth that it uses is well in excess of $1million per week, all the content is free and it has ad support from Google and mixed with some GeoIP and localisation incase you would like to meet "other like minded people in your area".

So the issue is - stats that we have unearthed is that only the videos under 3mins are actually viewed - the bigger ones of 15mins + are normally ignored, the ads are almost irrelevant as the user is there for a specific purpose - and once his "goal" is reached - there is no need to then pursue and ad driven promotion - so dwell time is not that sticky... and conversion of the ads is poor. The other big challenge is the Porn Industry themselves - at any one time there maybe upto 5,000 movies being made in Southern California a day - that is because the life-span of the Porn DVD is 2 weeks - yes only two weeks before it is ripped and then made available on torrents everywhere - so they really only have a 2 week window in order to gain maximum exposure and recoup the costs of the movie.

So now in 2008 YouPorn lead the way with free to view content - the porn industry looks at how it can compete - HD Movies, multi angle and interactive elements are being explored - and of course hoe BluRay will help them reach a new audience by connecting the rich interactive elements with online. YouPorn have also noticed this and have added a new subscription element that does not have "amateurs" but instead full HD quality, with the Porn Superstars and more intuitive scene selections and a whole host more. They have moved away from flash for this and gone with the trusted WMV format that has DRM restrictions - which defies the essence of the original site - but with say 100million eyeballs and a x% convert to the subscription model - that will surely start to pay for some of that bandwidth cost?

So why were 6 men discussing this? Well we were reviewing TV and Movies on line - and where to look to for inspiration and compare business models for of our big clients - 2008 will be an interesting year for streaming media - and apart from the BBC (rant to follow on those guys...) everyone will be looking for the best delivery, the most intuitive platform and retain some sense of commercial acumen to report back to their CEO or CFO that they can sustain a ROI on their business model.

Can it be done? YES - but after 6months looking at where we need to be and what the studios have to offer (take a look at a previous post that discussed this)  - looks like we have just started to climb the mountain - but we do have the knowledge and the brains to deliver to the consumer and return to the investor.

When? Well keep September free and we'll see you on the other side?

Right more "research" - goodness my eyesight is getting worse!

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About Derek.Dunlop

Somewhere in the wireless ether - digitally connected and running on duracell while hopping from one airport to another- life on the road - forever on tour...

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