I think it’s how you look at the porn industry. VHS and DVD sales are definitely dying: however the online download market is thriving quite well. Yes, there are hundreds of “free porn” pirate sites out there: but the vast majority are virus ridden or consist of low quality clips. There’s quite a number of legal pay sites (Videobox for example), that provide high quality and virus free video for less than $20 a month with a worldwide customer base (rumor has it Videobox rakes in millions, and pays mere dollars for intrastructure costs). Also the production costs to make porn, thanks to all the advances in camera prices dropping and the abundance of video editing software on PC, has dropped to the sound of only a few thousand dollars.
What we’ve seen is the death of “mega million” porn stars with fancy fake boob jobs. It’s now the reign of “nameless starlets” who get paid a few thousands dollars an hour for a shot or two. Not to say we won’t have popular porn actresses… but instead of having a Asia Carrera (plastic overkill and big paycheck), we now have Evelyn Lin (natural beauty and middle class lifestyle).
Porn isn’t in danger of dying like the auto industry: porn is merely evolving to a new form. Flynt is quite loaded, and it’s not like he has much time left on this Earth anyways. However anyone trying to repeat the same steps Flynt took to forge his porno empire, is doomed to fail miserably.
For decades, porn tried to be like Hollywood: high priced budgets and expensive shooting locations. For a short time it worked. But honestly: shooting a sex scene in some undecorated bedroom gets the same amount of customers as those extravagant pirate movies. Difference is, that “Amateurs Gone Wild” (price tag $25,000) makes a bigger turn around than “Horny Pirates of the Caribbean” (price tag of $500,000 with the stars getting a cut from the profits).