Working Paper No. 9: Economics and Regulation of Adult Online Content © Photo Credit: wayhome.studio - stock.adobe.com

Working Paper No. 9: Economics and Regulation of Adult Online Content

This study provides a comprehensive overview of the ecosystem of pornographic websites, including their business models, market structure and user base. Furthermore, the study outlines the resulting societal issues and potential mitigation measures, as well as current approaches.

Pornographic websites represent a significant component of the digital ecosystem; however, comparatively limited research has been conducted on this subject in comparison to other websites. This paper aims to gather and enrich the extant literature on the subject. For this purpose, a comprehensive analysis of the diverse business models is conducted, regarding factors such as their design, content uploaded and revenue generation. 

Furthermore, an analysis of the market structure of the various companies operating within this sector is undertaken, which reveals a high degree of vertical and horizontal integration, with several tube websites as well as websites employing interactive models demonstrating particular significance. The utilisation of such services is frequent across the population, which raises several societal concerns. 

These include the presence of illegal content such as copyright-infringing material, child sexual abuse material and non-consensually shared intimate material, potential issues regarding the protection of privacy, potential negative effects due to harmful material, access by minors and potential negative effects on the mental health. Several potential mitigation measures are presented and current approaches outlined, including age verification, verification of uploaders and performers, content moderation and changes in functionality. Especially tube websites appear to have little intrinsic motivation to remove illegal content and should therefore be examined more closely.