Speaking as someone in the industry, the internet is actually hurting the adult entertainment industry now. While it's still pretty profitable the larger production studios and distributors are having trouble competeing with all the free internet tang produced by randum dudes with a camera. In the past there wasn't really a choice, you had to buy a magazaine, buy a video, or subscribe to a cable channel. Even with an average viewr time of 8 minutes you still got to charge for the whole thing. Right now the next big market is cell phone porno, especially in europe where they have way better cell phones than us.