| For years people have been been suggesting | | | | time. |
| that adult websites are single-handedly | | | | |
| driving advancements in technology but what | | | | What few people realize is that adult |
| does that really mean? Aside from sexually | | | | websites helped perfect two other major |
| explicit content what has the industry really | | | | online technologies; online billing including |
| contributed to the world and how has it | | | | PayPal and stats and analytics programs like |
| improved your life? These are good questions | | | | those sold by Visual Sciences LLC, a publicly |
| and worth answering if for no other reason | | | | traded company under the symbol VSCN. PayPal |
| than cocktail conversation at your next | | | | and other billing companies found their |
| party. | | | | perfect match with online adult video. For |
| | | | one thing, users were willing to spend a lot |
| One of the earliest examples of this | | | | of money on adult sites. Where there was |
| phenomenon was the rivalry between Beta Max | | | | some hesitation to buy books, sneakers and |
| and VHS. Sony introduced ‘Beta’ | | | | silverware online, there was not a moment of |
| in 1975 beating JVC’s rival format of | | | | doubt when it came to consuming adult content |
| VHS to the market by over a year. During | | | | online. Because there were so many |
| that crucial year Sony was able to capture a | | | | transactions billing companies were able to |
| significant number of early adopters and | | | | perfect fraud tracking systems, |
| introduce the world to the concept of | | | | ‘chargeback’ thresholds and |
| watching movies at home and recording content | | | | rebilling programs. PayPal eventually |
| to watch later. But they made one big | | | | abandoned their hugely profitable porn |
| mistake that caused the market to abandon | | | | business when they were acquired by EBay |
| their video player and move to the new | | | | because it conflicted with EBay’s |
| technology-VHS by end of the decade. Sony | | | | corporate culture. Other companies like |
| refused to allow adult film makers to | | | | CCBill and Paycom stayed in the adult space |
| distribute their smut on Beta. That meant | | | | and continue to thrive. |
| that anyone interested in watching adult | | | | |
| content from the confort of their own home | | | | Stats tracking was essential in order to |
| was forced to buy a VHS player, even if they | | | | optimize web sites, content delivery and |
| already had a Beta Max. Adult video made VHS | | | | retention tools. Free sites were less |
| the only choice and drove the adoption of | | | | worried about funneling users to the most |
| movie rentals and mail orders in a country | | | | profitable pages but adult sites that charged |
| that had been obsessed with going to the | | | | for membership made it a science. By |
| movies- even seedy adult theaters. | | | | tracking use patterns the sites have been |
| | | | able to present offerings likely to appeal to |
| The technology push accelerated with the | | | | individual users and therefore increase |
| arrival of the internet. Pornographers were | | | | conversions. Retention stats have helped |
| the first to widely distribute video over | | | | with financial forecasts and valuation. |
| this new system. In the early years that | | | | |
| meant a grainy postage stamp size clip that | | | | Adult continues to innovate, leading the way |
| was hard to see even if you had the time to | | | | into mobile content, anonymous billing and |
| wait for it to download or buffer. Quality | | | | alternative payment technologies like ACH |
| issues forced improved video compression | | | | (online checks), SMS billing and phone cards. |
| technology and delivery methods long before | | | | Other sites like are using revolutionary |
| YouTube and others joined in the online video | | | | video delivery tools to give each user a |
| land grab. | | | | fully customizable experience. Members can |
| | | | choose what part of a scene they want to |
| Another constraint faced and, ultimately, | | | | watch and then edit those clips into cohesive |
| overcome by online adult content was | | | | adult mix tapes. |
| bandwidth. With dial-up connections it took | | | | |
| a very long time to download and watch short | | | | There is no telling what advancements adult |
| video clips, whether those were sports | | | | will deliver next but some of today’s |
| highlights or skin flicks. The proliferation | | | | most popular sites owe their success to |
| of broadband internet access changed all of | | | | trails blazed by adult sites. It will be |
| that and while it would be impossible to say | | | | fascinating to see if any of those |
| that adult content alone drove the move to | | | | technologies can cross out of entertainment |
| broadband, there is a direct correlation | | | | and contribute to medicine, space exploration |
| between broadband adoption and the explosive | | | | or public safety. It does not look like |
| revenue growth in the online adult industry. | | | | there is anything like that on the horizon |
| Coincidently the offline adult industry began | | | | but it is too early to count them out. Adult |
| to loose market share at roughly the same | | | | has proven that they are full of surprises. |