I read the same article before Christmas last year and that simply explain how hard to invest in the porn industry.
The technology helped the porn industry to prosper and create effective distribution network from VHS to DVD, on-line, VOD at hotel or in your own home and even on cell phone for the past decade. But thanks to youtube phenomenon, the technology proves to be destructive in the long run as people get the porns free simply by having others uploading the legit porn videos to youporn or youjizz all over the world.
I am not even talking about the amateurs who upload their "masterpiece"
That alone makes the gangs to think twice on profitability to do bootlegging and sell pirated porn videos in emerging economies. It also makes the law enforcement to pull the plug on these sites or in an ironic twist, do the bidding for Vivid of the world to protect their videos "copyrights" difficult as these sites are very decentralized.
Worst, Vivid of the world simply could not buyout whoever that be behind youjizz or youporn and monetizing these sites by studying the web traffic and selling their company merchandise in the process. The capex is very signifcant, yet the rate of return or profit is undetermined and you cannot change these sites to paid subscription format either!
Google faces the same issue after they took over youtube.