When YouTube burst on the scene in 2005 they probably had no idea what they would end up doing to the world. While the original concept of sharing videos was based more on the idea of uploading a users own creations, since they have launched the site has steadily added all sorts of content. Of course while that isn't a big deal to them, for other industries like pornography, it had been a huge blow.
 
There haven't been many existing industries that have benefited from the internet explosion like the Adult industry. A certain percentage of people had always enjoyed adult material and the internet simply made that more accessible. People were able to get what they wanted in the privacy of their own homes and the industry adjusted and grew to meet that demand.
 
Then along came the tube sites.
 
Exploitation Rules
 
Ironically, it is a loophole in the Digital Millennium Copyright act that keeps getting exploited that is causing so many problems for existing adult companies. For those not familiar, the irony is because of the many people that are often exploited in the adult industry when they first start out.
 
In this case, now the established companies are the ones being taken advantage of by more savvy business operators such as companies like BangYouLater. They are a very popular 'adult' website that utilizes the 'tube' format for their gain.
 
Since they are a tube site, users are allowed to upload any sort of video content they want. Obviously sites have restrictions against certain types of violent or underage performances, but other than that the sky is the limit. The result is that if people want to upload clips of existing movies, they can. That means sites like BangYouLater are now home to thousands of pirated video clips.
 
Because of the 'safe harbour' provision within the law, it is assumed that the sites don't know that the material is pirated and don't have to actually remove it unless a request is made by the actual owner. Even if the material is there, all they have to do is take it down. Then of course another user can simply upload it up again.
 
Why does it Work?
 
People are more than willing to get things for free. Back when Napster hit the world by storm, people had no problem downloading and enjoying music for free. Even now, file sharing is still happening because there is a conception that big companies rip off the little guy all the time.
 
Also, it is very hard to police the copy-protected material being uploaded by 'random' users. Unlike during the music file sharing situation, the adult industry does not have the same level of clout to fire back with. While large companies like Viacom have tried to protect themselves and file lawsuits against YouTube to change the standard, so far their efforts have not been effective.
 
In the case of adult material, sites like BangYouLater are extremely popular. The high levels of traffic generate ad income for the owners who are more than happy to take the risk until something monumental changes. People do enjoy adult material but many prefer the anonymous aspect of using the internet rather than walking into a store to purchase a video.
 
From a legal standpoint it is piracy, but the adult industry will never be able to capture the public opinion in the same way musicians did with fighting file sharing.
 
So Is It a Bad Thing?
 
One reason why this issue has yet to become a bigger issue is because so many people just don't seem to care the adult material is available for free. Yes the adult industry is a billion-dollar business. That means lots of jobs for people in a wide range of areas, not just those who shed clothes. However business is always changing.
 
The rise of the internet has created numerous new opportunities for people to make money. In this case these specific tube sites that target the adult crowd are doing what they can to satisfy their customers. Of course the adult industry was going to eventually be in trouble. One thing the internet has provided to people is an unparalleled access to information and sharing. That means more people posting amateur videos of themselves that compare well to professionally made movies. The shift has just happened a bit quicker than anyone expected because of the massive popularity of adult tube sites.