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Porn is dead, why Penthouse Needs a Deal
[September 14, 2011]

Porn is dead, why Penthouse Needs a Deal

Originally posted on Communications and Technology Blog - Tehrani.com, here: http://blog.tmcnet.com/blog/rich-tehrani/technology/porn-is-dead-why-penthouse-needs-a-deal.html.

The world is going daily deal crazy and the multi-billion dollar Groupon valuation is no doubt a huge factor. And while some companies have pulled back from this category, purveyor of porn, Penthouse is purchasing an Asian daily deals company valued at just over $50M.

What this tells us is the paid-porn business is still in trouble thanks to sites like redtube, pornhub and xvideos, places where users can get tons of free porn.Yet the eyeballs are still there so if you can find a way to increase the revenue per eyeball of your porn site, you are in great shape.

And this my friends explains why FriendFinder Networks, owner of the Penthouse magazine brands and many adult-oriented online communities, has acquired BDM Global Ventures for approximately $65 million. Expect the trend to continue.



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