Reuters, via PC World, report that the adult movie industry is bracing itself to fight for its survival as cheap bandwidth, piracy and adult video websites take a toll on their bottom line.
Sites like Xtube.com allow individual to posts adult-themed videos which are prohibited on mainstream websites like Youtube or Dailymotion.
According to the article, Xtube has more than 200,000 videos that have all been uploaded by its users and this has been enough to propel the website in the top 200 websites worldwide, according to Alexa's ratings (opens in new tab) and in the top 100 UK websites.
XTube's sales director, Curtis Potec says that 1 percent of visitors, which translates into tens of thousands of users, typically buy DVDs or video streams, earning the company millions of dollars per year.
Unlike Youtube which does not sell anything per se, Xtube is certainly making a tidy profit as it relies both onsite advertising and product sales to improve revenues.