Starrio quote is from another thread
hereStarrio wrote:What the studios don't understand is that they are basically playing casino, Pornbox is like the house and the studios are the costumers playing Blackjack.
The studios are happy with the arrangement for various reason:
- Sometimes they win, meaning the house gives them more money than the scene would probably sell within a given time realistically down the future
- They don't have to suffer those loses when a scene doesn't sell as much in the future because Pornbox took that risk already by accepting the deal
- They get a chance to receive a large amount of money right away without having to wait patiently for customers in the upcoming years to consider buying the scene
- Having the money now is something everyone likes specially if you have told yourself you need the money now to keep producing more content
In real life this is how casinos trap their costumers to keep coming back, sometimes the casino loses big time, and the players win big time, and that is very satisfying for the player.
This is why the players that play the most have more chances to see those wins, and if they keep doing it for awhile they basically become addicts.
It is a good incentive because it motivates them to keep putting content or keep playing, and some play a lot, but that's also how much they lose too.
What the players don't see is the insane amount of money the casino is making of them. The casino doesn't have to do any significant work other than maintenance of their installations, and still is making all that cash.
The costumers are the ones that have to go to work everyday to make that money, and all the casino has to do is put out a table to take part of that money from them.
If the customers really knew the numbers maybe their addictions would go away, but because they become addicts they don't want to know.
They say the casino has to make their money too.
Now the big difference is that if a player is also the casino owner he can go play as much as he wants and it doesn't matter because he is winning money either way if he also owns the casino.
The problem is only for those that don't own the casino, but I guess their excuse is that Pornbox is putting their work offered to a certain clientele that was build already overtime as opposed of them doing it themselves without nobody knowing them, which to be fair is very valuable.
So in other words the value they see is the convenience and the exposure, or publicity, but it doesn't make it more digestible how much they actually lose as well.
In a simplified example for illustration, what if a producer of porn scenes had the possibility to sell their scene to one of 2 dominant clipstores?
- Clipstore A offers a single defined payment, whether on day 1, day 14, or any other timescale.
- Clipstore B offers continuing revenue share of some percentage of sales, paid periodically.
Question: Which offer does the producer take? Clipstore A or clipstore B?
Answer: We don't know because we don't know any numbers and even if we did, the future is uncertain.
Both the clipstores and the producer face multiple business risks and have to make the best choices they can.
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Real life is much more complex than this simplified example and all producers and clipstores face many more choices about how to trade.
IMO the clipstore is nothing like a "casino" and the producer is nothing like an "addicted gambler".
The clipstore is more like a department store and the producers may sell to the department store, or take the risk and reward of selling their goods elsewhere.
The main difference is that the small porn producers can be much nimbler in entering or exiting the market, or changing allegiences to sell through other channels.
But the clipstore proprietor has invested in rearing a much bigger slower animal which needs to be fed continually.
So if anyone imagines that building, operating and maintaining a clipstore (or a department store or a casino) is so easy that all the owner has to do is sit back and collect the cash, then why not borrow some millions from the banks eager to fund your guaranteed succcessful business idea and you can retire immediately to your holiday island?