The people getting rich off of this industry are the cam sites, such as MyFreeCams or LiveJasmin, typically taking half of the earnings brought in (models get the other half, often split down to a quarter if a studio is involved). Several of them are generating tens of millions in revenue at this point, and are among the top 500 sites globally in traffic.
The founder of MyFreeCams runs a VC business in the US with his cam wealth.
I wouldn't be surprised if in another five years the cam business is larger than the traditional porn industry, including the large porn sites.
It's probably already bigger, but they guard their numbers. Tube sites are just portals to get you to go to a cam site or a dating site. There are fewer regulations with those sites as opposed to professionally produced pornography (2257 regs, condom use laws in LA County, etc.). You also don't have to worry about copyright infringement (executing it or defending yourself from it) with cams and dating sites.
How do they monetize the adult dating sites? Sign up fees? I would think there's not a lot of repeat business there, once the users find out it's a scam. Whereas cam sites can milk people forever.
Membership fees and cross-promotions to other adult properties are the primary means of monetization. Some of them will have virtual goods and tribute/tip systems as well. Most often (male) users cannot communicate with other members unless they pay for access. And, what's more scammy, is that if you receive any messages from women, it's highly likely to be a camgirl or female agent from another part of the company. These girls receive commissions for getting non-paying members to convert.
Hookup sites are a volume-based business. A common business practice is to whitelabel a successful hookup site; give it a different skin, but share the same database so it looks populated. Once you're in the database, you'll be spammed for any new whitelabeled version that pops up. Also, the user population is 95% male, so you have better odds of finding a female hookup at a gay bar.
Yea, the owner of LiveJasmin is currently the third wealthiest man of his country (Hungary). Sure it's not a big country but he's worth around half a billion dollars. Interview with him with English subtitles: http://www.youtube.com/watch?v=yqKHAgzoiQY
Anyone selling shovels during the gold rush? That is products or services to the models themselves, like schedule optimisation, gadgets, macro responses, leaderboards, third-party sites with monetisation of secondary products and memorabilia, lighting and furnishings for the rooms, etc?
There's a new class of site that's essentially a hosting platform--anyone can use the site to host a show out of their own home, use the streaming infrastructure, billing, tips system, private shows, pay-per-access pics/vids, etc.
Provided you can manage to stay anonymous, seems like a safe way to be a sex worker without violence/coercion.
The founder of MyFreeCams runs a VC business in the US with his cam wealth.
I wouldn't be surprised if in another five years the cam business is larger than the traditional porn industry, including the large porn sites.