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The tube sites have killed the content business; this is a shrinking industry.
I agree, the content is better than it ever has been before, and you can get it free...
As soon as those services get big enough it raises flags and they get shut down.
The main company that seems to be able to process credit cards for porn is CCBill.
If someone can explain to be what the legal roadblock is for porn billing and how one might be able to get around it, I’d be the first investor and founder. There is so much great pornography out there now I feel like you could actually change the way people think about it and maybe even clean up the industry.
It doesn’t have to be a dirty thing you bury under 10 cryptic folders. My biggest challenge of that time was reliable billing.
That said, it wasn't quite as bad as you make it out to be.
When you have a long history of low chargebacks you can make some deals, and even then there were a few options.
However all you said regarding merchants and banks is still an issue, payment processors get quite a large chunk of the pie.