Why Bitcoin does not work for porn

[grau]

At the first sight Bitcoin is ideal for porn since it protects customer privacy and cuts payment processing costs for the provider. Like many in the community I expected for long that Bitcoin will pick up in that industry and kept wondering why it takes so long...

... until today, when I learned from an industry insider why Bitcoin is not accepted at porn sites:

1. Because nearly all porn sites have introductory offers that lead to a subscription with recurring billing on the credit card until the customer explicitly recalls it. The fees are calculated with the assumption that most customers forget to cancel at least a couple of times or not even recognize that they pay for a service that they no longer use.

2. Because affiliates - those who direct traffic to the porn site - want a share of those fees in upfront. An affiliate receives a multiple of the introductory offer immediately if someone he directed to the site subscribes for a plan. Affiliates do not want the site to use bitcoin either.

3. Porn sites have difficulties working with payment processors and are called 'high risk' industries, but not because of their customers or products, but because they themselves misuse the credit card re-bill features (see 1) and cause lots of customer complaints at the credit card issuer.

4. Biggest porn sites therefore have their own credit card processor.

Summary: Bitcoin would be beneficial for customer of porn but will not happen until the industry has any other choice.

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[battlescars]

Very interesting read, but i want to bring to your attention that a bitcoin only site exists where people preform "acts" for bitcoin
So it does exist but , for the well established sites it probably wont even work mainly because everyone who they are getting
their subscription from has no clue of what bitcoins are, if they did the price of bitcoin would rise and would benefit me.

[Kenshin]

At the first sight Bitcoin is ideal for porn since it protects customer privacy and cuts payment processing costs for the provider. Like many in the community I expected for long that Bitcoin will pick up in that industry and kept wondering why it takes so long...

... until today, when I learned from an industry insider why Bitcoin is not accepted at porn sites:

1. Because nearly all porn sites have introductory offers that lead to a subscription with recurring billing on the credit card until the customer explicitly recalls it. The fees are calculated with the assumption that most customers forget to cancel at least a couple of times or not even recognize that they pay for a service that they no longer use.

2. Because affiliates - those who direct traffic to the porn site - want a share of those fees in upfront. An affiliate receives a multiple of the introductory offer immediately if someone he directed to the site subscribes for a plan. Affiliates do not want the site to use bitcoin either.

3. Porn sites have difficulties working with payment processors and are called 'high risk' industries, but not because of their customers or products, but because they themselves misuse the credit card re-bill features (see 1) and cause lots of customer complaints at the credit card issuer.

4. Biggest porn sites therefore have their own credit card processor.

Summary: Bitcoin would be beneficial for customer of porn but will not happen until the industry has any other choice.

You could always, start your own porn site, and accept Bitcoin only.

I actually thought about making one in the last few weeks.

[battlescars]

they already have that site i cant remember what its called exactly but its like a webcam kind of thing, bitcoins only no credit cards.
LOL but in all seriousness why would you even want to run a site like that its a dirty business, and not worth it.?
The money probably isnt even that good , you will get decent income maybe depends on your advertisement

[QuestionAuthority]

At the first sight Bitcoin is ideal for porn since it protects customer privacy and cuts payment processing costs for the provider. Like many in the community I expected for long that Bitcoin will pick up in that industry and kept wondering why it takes so long...

... until today, when I learned from an industry insider why Bitcoin is not accepted at porn sites:

1. Because nearly all porn sites have introductory offers that lead to a subscription with recurring billing on the credit card until the customer explicitly recalls it. The fees are calculated with the assumption that most customers forget to cancel at least a couple of times or not even recognize that they pay for a service that they no longer use.

2. Because affiliates - those who direct traffic to the porn site - want a share of those fees in upfront. An affiliate receives a multiple of the introductory offer immediately if someone he directed to the site subscribes for a plan. Affiliates do not want the site to use bitcoin either.

3. Porn sites have difficulties working with payment processors and are called 'high risk' industries, but not because of their customers or products, but because they themselves misuse the credit card re-bill features (see 1) and cause lots of customer complaints at the credit card issuer.

4. Biggest porn sites therefore have their own credit card processor.

Summary: Bitcoin would be beneficial for customer of porn but will not happen until the industry has any other choice.

You could always, start your own porn site, and accept Bitcoin only.

I actually thought about making one in the last few weeks.

Yeah, that's what the WWW needs, more porn sites!

[remotemass]

they already have that site i cant remember what its called exactly but its like a webcam kind of thing, bitcoins only no credit cards.

It's: classycams.com

[franky1]

why bitcoins should work for porn.

1. bitcoin was designed to prevent companies just taking out cash from your account without request, simply because you forget. and any porn company relying on this form of theft should not be in business as its not good customer service.

2. instead of paying a monthly fee of a few dollars for unlimited access. bitcoins allows small transaction. it has been proven that a pay per view of EG $x per show earns more from regular customers then a $xx a month flat fee.

3.affiliates can get paid within 10 minutes and know that there will be no chargebacks to worry about. nor can affiliates abuse the payment system as they cannot simply abuse/grab money from other peoples accounts to make their ratings/commission look good. meaning porn sites do not need the expense of high security payment processors

4. if you are using a porn site that requires credit card details and has the scammy re-bill system then you truly would be that naive to think bitcoin is not better for both customer or business

[Caiapfas]

I'm willing to go in with someone else to make a BitCoin only porn site.

I offer technical expertise , programming expertise, hosting...etc


let me know

[battlescars]

Good luck^^ But its like any other business and should be treated as such, and i dont know the diffuculty of maintaining a good profit.
I doubt a lot of profit could be made because not a lot of people heard about bitcoin maybe from ads? maybe i am wrong.

And, back to the topic the more people that use the bitcoin the better that goes for any adult site.

[FenixRD]

Pretty sure Coinbase has a method for recurrent billing, though OP's point still stands for 2 reasons: It's recurrent payment, not billing. User must initiate, obviously. There are probably complex or exotic TXscript structures to replicate that functionality, but it's definitely not in demand. Secondly, and also to OP's point, we do hundreds of Visa txns a month. Easier to get lost in the bill. Not so for Bitcoin yet. You'd notice it.

[BTCisthefuture]

Interesting point brought up about subscriptions/monthly charges.

Makes wonder when we will have options like that with bitcoin, currently it would be quite hard to provide subscriptions in bitcoin especially if you get tricked into it and then cant dispute the charge like you can when you call your cc company.

[Interized]

At the first sight Bitcoin is ideal for porn since it protects customer privacy and cuts payment processing costs for the provider. Like many in the community I expected for long that Bitcoin will pick up in that industry and kept wondering why it takes so long...

... until today, when I learned from an industry insider why Bitcoin is not accepted at porn sites:

1. Because nearly all porn sites have introductory offers that lead to a subscription with recurring billing on the credit card until the customer explicitly recalls it. The fees are calculated with the assumption that most customers forget to cancel at least a couple of times or not even recognize that they pay for a service that they no longer use.

2. Because affiliates - those who direct traffic to the porn site - want a share of those fees in upfront. An affiliate receives a multiple of the introductory offer immediately if someone he directed to the site subscribes for a plan. Affiliates do not want the site to use bitcoin either.

3. Porn sites have difficulties working with payment processors and are called 'high risk' industries, but not because of their customers or products, but because they themselves misuse the credit card re-bill features (see 1) and cause lots of customer complaints at the credit card issuer.

4. Biggest porn sites therefore have their own credit card processor.

Summary: Bitcoin would be beneficial for customer of porn but will not happen until the industry has any other choice.

You list more reasons why Bitcoin will be successful because it works for the average Joe and not the big companies.

[BitcoinBarrel]

Sell yearly subscriptions? You do bring up a good point about recurring payments, but even recurring payments don't work if the person doesn't have any money.

[MrPalmer]

This does seem like a natural fit, and while there may be obstacles to making it work logistically - I'm thinking we'll see this develop in 2014.  Sure, the reasoning why not to do it sounds reasonable, but I'm sure there's people who would pre-pay for a year, etc, if they could use BTC. 

[ArticMine]

Recurring payments are far from unique to the adult industry and are in fact extremely common with credit cards and bank accounts. Many companies will rely on inertia on the part of consumers, and / or sales pitches in order to keep receiving payments after the customer has lost interest in the product or service. Gyms for example are notorious for this. The main reason that adult is so high risk is not recurring payments but rather that many who purchase adult services online will issue a charge back in order to protect their marriage or relationship when their spouse or partner finds out about the charge for adult services.

Now with Bitcoin recurring payments are possible and are in fact being proposed for version 0.9 of the reference client http://thegenesisblock.com/significant-merchant-improvements-planned-for-bitcoin-v0-9/; however unlike the credit card or bank account situation the customer is always able to cancel the payments without contacting the company receiving the payments since Bitcoin is a "push" rather than "pull" payments system. The trouble with recurring payments with a "pull" model as is commonly used with credit cards and bank accounts is that in many cases the company receiving the payments is less than helpful when the time comes to cancel the payments

[kostja]

why Bitcoin is not accepted at porn sites

If You explain to models, how to use coinbase, they will make shows for bitcoins.
But if there are no requests to pay with bitcoins? Customers give only stupid proposal about paypal payment.
Now Payoneer give new restrictions about adult services too.

Models are paying from 50% to 75% for money processing, billing costs and video stream service and advertising fees under webcam sites.

Who create a platform with less costs for models under bitcoin or other - will be a winner.

[dewdeded]

All known and discussed in 10 threads before.

[FenixRD]

All known and discussed in 10 threads before.

Was I wrong to participate based on the title tense? You are all acting as if the thread is "why Botcoin cannot ever be..." To me, IS NOT is present tense, occurring now.

[inthemoney25]

doesnt free porn make paying for porn in any form kindof obsolete? i mean what kind of crap do you have to pay for? and if your fetish is so sick that you need to have cash on hand to make the firl/guy do it, dont you think it might be time to take a step back and look at your life choices? I enjoy porn just as much as the next guy but really dont see the need for pay to watch porn. just my opinion tho

[Caiapfas]

doesnt free porn make paying for porn in any form kindof obsolete? i mean what kind of crap do you have to pay for? and if your fetish is so sick that you need to have cash on hand to make the firl/guy do it, dont you think it might be time to take a step back and look at your life choices? I enjoy porn just as much as the next guy but really dont see the need for pay to watch porn. just my opinion tho

If people were not stupid enough to pay for porn the entire porn industry would dry up and die. people pay all day everyday.
Porn is good as drugs, people want it, people need it and people will always want it since ancient times.