I used to own several adult companies in the past. Incredible huge margins and then along came Pornhub and we could barely survive after it as we did not adapt.
With Deepseek this is now the 'Pornhub of AI' moment. Adapt or die.
They understood the Dmca brilliantly so they did bulk cheap content purchases and hid behind the Dmca for all non licensed content which was "uploaded by users". They did bulk purchases of cheap content from some studios but that was just a fraction
Of course their risk of going advertise revenue only was high and in the beginning mostly only cam providers would advertise
Our problem was that we had contracts and close relationships with all the big studios so going the Dmca route would have severed these ties for an unknown risk. In hindsight not creating a company which did abuse the Dmca was the right decision. I am very loyal and it would have felt like cheating
Now it's a different story after the credit card shake down when they had to remove millions of videos and be able to provide 2257 documentation for each video
With Deepseek this is now the 'Pornhub of AI' moment. Adapt or die.