Economics @ ITT

Is the Porn Industry Perfectly Competitive?

Posted in economics by ittecon on May 30, 2013

Sex sells, but can it remain profitable.

It’s harder to make profits in porn in the digital world, the 21st-century medium of porn distribution.

Evidently, economic profits are approaching zero. There is clearly differentiation, but by and large pornography is a commoditised industry, but the marginal cost of delivery is also approaching zero.

This industry might well benefit be reading Chris Anderson’s Free: The Future of a Radical Price (or UK), and embrace it. Leverage the medium as an advertising vehicle, and run with it.

[No gratuitous images or video links.]

Source: Is Success Killing the Porn Industry? | Alternet.

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