How much punishment did the porn industry suffered with the advent of YouTube porn site "YouPorn"?

DVD sales in the American porn industry are decreasing rapidly. The main cause of this is "YouTube's porn version"YouPorn"The existence of the site called. Boasting 15 million unique users per month and not only professional artworks but also amateur posts, it deprives many users and is the world's largest adult video production company that bothered with this, "Vivid Steve Hirsch (Steve Hirsch), founder of Entertainment Group, will meet with Stephen Paul Jones (pseudonym), one of YouPorn founder, on May 18th this year He said that.

So, the details of the American porn industry which is rarely known in Japan are as follows.
YouPorn Vivid Entertainment Profile - Portfolio.com

■ Actual condition of YouPorn


Originally, "YouPorn" was originally launched in September 2006. Virtually unlimited variety of adult movies can be viewed and uploaded by users. Therefore, there are many movies from professional artworks to those based on amateur photography, has acquired the most users in the world, the number of users reached 15 million unique users in May 2007, YouTube As with the income, there are more transfer charges than income. The number of users is increasing by 37.5% every month. 12% of all users are accessed from the US, the rest are other countries. There is another founder in YouPorn besides Mr. Jones, he is a young Malaysian living in Australia and he seems to be named "Zach Hong".

Mr. Jones said he himself is 27 years old, lives in California's Newport Beach, and he operates a hedge fund that manages billions of assets. If you say why you are using pseudonyms, it seems that your boss will dismiss him if you run YouPorn. In the first place, he himself was one who engaged in establishment, not "owner", he wrote the fundamental program of YouPorn's site. The so-called true founder is "a German," he says he is still doing the entire YouPorn service everyday.

But actually Mr. Jones is 40 years old instead of 27 years old, South Lake Tahoe, not Newport Beach, lives. I have never worked in the porn industry during the past 20 years and seem to have worked for a security company before. His real name is posted on the graduate register of Stanford University and he acquired M.B.A. last year, hobby is skydiving, stunt maneuvering and snowboarding. I live in a three-story house of a lodge style with a huge backyard, and it seems that my family keeps this work secret. The YouPorn revenue model he is thinking is the same model as Skype and "If there are 100 million users, if one percent of users pay 10 dollars (about 1050 yen) per month, income will be $ 120 million (about 12.7 billion yen)It seems to be what it says.

■ Why you want to acquire YouPorn


In the first place Viv company was interested in acquiring YouPorn for reasons, DVD sales declined by 50% since 2004. The reason for this is because video such as YouPorn seen on the Internet was discovering that Vivid was depriving market share. This is not the only problem with Vivid, but similar competitors engaged in the porn industry, Wicked Pictures, Evil Angel, Digital Playground, Red Light District, Penthouse Media Group, Hustler also face the same problem, What is the level of what the music industry has eaten with file sharing software, or the advertisement of the newspaper is online advertisement site "CraigslistIt seems to be the same level as the blows eaten by.

YouPorn giving the industry about this blow to the industry, how much revenue you earn, about 120 thousand dollars a month (about 1265 million yen) monthly. Mr. Jones' owner, who owns YouPorn, wants to buy 20 million dollars (about 2.1 billion yen).

About current porn market


Next, let's take a look at the current porn market to see if it is worth the truly expensive acquisition.

Vivid's adult video is pretty expensive even from the standard of porn industry, expensive set · celebrity appointment · preferential package is uri. The budget for making it will cost from 50,000 to 300,000 dollars (about 5.3 million yen to about 31.8 million yen) per piece, and it will cost even 20,000 dollars (about 2.12 million yen) to circulate in the market. The price per DVD is $ 25 (about 2600 yen). With this, we produce about 60 works a year, and the revenue will reach 100 million dollars (about 10.6 billion yen). This is three years ago from now and 80% of the total sales were due to DVD sales. But this year domestic DVD sales declined to 30%. It seems that we expect that DVD sales will fall to near "zero" within five years. This is not the only trend of Vivid, but according to Adult Video News it seems that total industry sales in the whole industry fell by 11% to $ 3.8 billion (about 40 billion yen) in 2006.

However, in addition to the main companies of these industries, about 100 small companies are producing about 500,000 to 5 million dollars (about 53 million yen to about 530 million yen) annually. The company is making works with a low budget of less than $ 10,000 per one. They seem to be ranging from 1,000 to 1,200 at the wholesale price of 8 dollars to 10 dollars (840 yen to 1060 yen) per one.

On the other hand, sales of adult websites on the Internet have grown 14% over the previous year, and it will reach 2.8 billion dollars (about 296.6 billion yen). Among them, the most earnest is a so-called subscription type site that allows you to access pornographic content on that site by paying monthly fee. Vivid's company Vivid.com that came out earlier is said to be the most successful site among them. There are about 40,000 subscribers who pay 30 dollars a month, and the annual revenue is 15 million dollars (about 1.58 billion yen).

■ New technology hit the porn industry for the first time


Until now every time a new technology appeared the porn industry used it well. For example, by using VHS video when it appears, people who have visited the theater until now can browse pornography at home and profit rises. Still it was still necessary to go directly to the shop and buy it, but even with that e-commerce on the so-called e-commerce on the net it has lost its time and the sales of porno DVDs has risen sharply.

However, "Web 2.0" became the first to introduce a major blow to the porn industry as a new technology. At first it seems that everyone was excited to think that sales would rise even more by the Internet, but the opposite was actually happening.

Among them, the threat was YouPorn mentioned earlier. Furthermore, PornoTube and Megarotic are continuing, and these two sites are mainly free, but draw a customer with restricted movie contents and sell paid premium members by being able to download more contents at high speed. Especially PornoTube has a strong sense of publicity rather than saying that it profits by itself, it seems that PornoTube sees it as a marketing expense rather than a profit raising section for parent company that operates PornoTube. However, management is done exactly, PornoTube's employees are monitoring 10 videos in total, 210 thousand videos per person, confirm the age of the actress who is appearing to confirm that it is not child pornography Whether it does not infringe the copyright (there is no problem if small and medium pornographic production studio is uploading by yourself), someone's private movie (for example, a separate boyfriend uploaded without permission) It seems to check to see if it is not.

Although there were various circumstances, Vivid finally gave up abroad to acquire YouPorn because there are various legal problems. Mr. Jones who is regarded as one of YouPorn founder and then he seems to be talking about selling to more related people in the porn industry.