January 18, 2007 | The Biz

AEBN swallows Naked Sword

The gay video on demand sector got smaller this week with the announcement that Adult Entertainment Broadcasting Network (AEBN), the biggest adult video on demand company, has merged with  gay VOD pioneer Naked Sword. Although Naked Sword will remain a branded stand-alone site, consumers can expect their options and video selection to look more and more like AEBN sites such as Male Pay Per View.

The merger has advantages for both companies: AEBN will have a much stronger presence in the gay market;  NakedSword will have access to the technology and marketing strengths of what is probably the largest VOD company in the world.

According to the press release, by the end of January Naked Sword will re-launch, giving up its current monthly subscription model and replacing it with AEBN's pay-per-minute structure. Almost all VOD sites use either a pay-per-minute or pay-per-scene revenue model.

One of the more interesting aspects of the merger is the issue of bareback porn. While Naked Sword has so far resisted working with bareback studios, AEBN has not hesistated to sign them on, in the process becoming the single largest online purveyor of bareback videos.

The VOD industry has become extremely competitive in recent years with many new VOD services, large and small, offering much the same product.  While this merger is a brilliant strategic move, it is still a  little sad that Naked Sword is no longer a "gay owned and operated" company. 

• Naked Sword merges with AEBN [AVN Online]