Reflecting on 25 years of success, AEBN honchos Jay Strowd and Bishop Wages harken back to 1999, when the company that would become a storied brand first broke away from an online DVD/VHS mail-order business to evolve as an entity solely dedicated to streaming video.
With an entirely new technology and business model, and a desire to break the norms and stereotypes of the industry at the time, they recall how there was a bell that would sound with every sale that was made. While it seemed like a good idea at the start, their rapid growth proved otherwise, and it was not long before the sound had to be silenced to avoid an endless ringing.
Creator content has become a gateway for consumers to learn to pay for adult content.
The advent of mobile devices and technology and the subsequent launch of their pilot mobile project in 2005 proved to be fruitful, as they had anticipated even back then that carriers’ walled gardens would come down eventually.
Then, AEBN acquired NakedSword, Falcon Studios, Raging Stallion and Hot House Studios, as part of its mission to seek the best of all content to engage all demographics, niches and tastes. As active supporters of the gay community and users, AEBN felt that those brands were a great fit for their portfolio. To this day, Strowd and Bishop are happy to have the NakedSword and Falcon Studios Group as part of the AEBN family, noting that Tim Valenti and his team are a great group to work with. They strive to innovate together and continue to further integrate teams and technologies for a stronger and more collaborative outcome that they all benefit from.
Next, the forming of their broadcast division, Align Broadcasting in 2013, was another important milestone. Since the “B” in AEBN has always stood for “broadcast,” the company had long aspired to expand to broadcast platforms, even as they await the broadcast industry to adapt and integrate more readily with internet media delivery options. Strowd and Bishop underline how the team at Align brings a unique set of skills, connections and aspirations that complement their corporate ideals and vision.
WIth the launch of their latest VOD platform in 2019, the execs realized a long-pursued dream of gradually positioning AEBN to tackle what was a dramatic re-imagining of their older platform. The latest iteration allows them to showcase and promote content in new ways, and integrate many new features to better engage consumers, and it is an ongoing project that will continue to evolve as AEBN moves into the future.
To learn more about how AEBN has navigated 25 years of evolution, XBIZ sat down with Strowd and Bishop to celebrate their milestone anniversary.
XBIZ: With the affiliate market contracting in recent years, how has AEBN adapted to today’s B2B ecosystem, while also growing its B2C segments?
WAGES: The evolution of the affiliate market has been the cause of some uncertainty, but also new opportunities. During our first decade as a company, we had explosive growth and fostered mostly business-to-business relationships. We are a company built on partnerships, so recognizing the changes in the affiliate market, we have diversified our revenue streams to make sure we do not neglect consumer relationships.
We have made extensive investments to improve the consumer experience on our platform. We have widened the range of content we support and enhanced user interfaces, and we are providing value-added features such as personalized recommendations and improved content curation.
XBIZ: The pendulum seems to have swung toward greater consumer willingness to pay for content, thanks in part to the creator economy. In what ways have you capitalized on this dynamic?
STROWD: We have begun collaborating with content creators, performers and studios to develop some co-branded initiatives that appeal to consumers. By leveraging our brands and reach with the expertise and creativity of content creators, AEBN can offer unique and compelling content that attracts subscribers and generates revenue.
We are actively seeking to broaden our offerings and help supplement creators by integrating more of their content into our platform. Creators have impacted the broader public’s mentality and acceptance of the fact that Adult content has value and is worth paying for.
WAGES: Creator content has become a gateway for consumers to learn to pay for adult content. Additionally, with the emergence of the gig economy, I think many consumers have become more aware of the value of other people’s time.
We emphasize the value proposition of paid content over free alternatives, highlighting factors like higher video quality, ad-free viewing, access to curated content and support for content creators. By communicating the benefits of paid subscriptions or purchases, AEBN aims to convince consumers that premium content is worth the cost.
XBIZ: Talk about your approach to securing and leveraging exclusive content licensing deals.
STROWD: While we don’t actively pursue exclusivity the way we used to, we do still feature some select titles for short-term exclusivity. We realize that our partners need to generate as much revenue as possible from their assets, so we do not want to impose any stringent restrictions that might hamper their ability to reach all audiences.
In recent years, we have been focusing on ways to extend and increase the revenue-generating potential of our partners’ content through the “long tail,” and we have seen some very encouraging results indicating significant success in many cases. AEBN has established strong relationships with content producers and distributors over the years, built on trust, mutual respect and a track record of successful collaborations.
XBIZ: Discuss the AEBN Trends reports and how you leverage data, from a bird’s-eye view to a more granular level, to maximize revenues.
WAGES: AEBNTrends.com reports are a series of articles that delve into various content topics within the adult vertical. They aim to uncover trends and provide valuable insights based on data analysis and industry knowledge. These reports are used to gain an understanding of consumer preferences and behavior.
AEBN analyzes data on consumer-purchased content dating back more than 20 years, to identify emerging trends and shifts in consumer preferences. By examining viewing patterns, search trends and purchasing behavior, we pinpoint what types of content are gaining popularity and adjust our offerings accordingly. We also use insights from the AEBN Trends reports to inform marketing and promotional strategies.
Other important data that we frequently consider but don’t publish includes detailed scene-level metrics for our content partners, to help them understand what portions of the content they create are most engaging to the consumer. Knowing what sex acts and which stars are the most compelling to the audience helps them make content fans will enjoy. By collaborating with partners to align content and promotions with current trends, AEBN can drive mutual success, maximize revenues and make fans happy all at the same time.
On a very granular level, we analyze consumption to provide consumers with more personalized content recommendations on the platform. This helps them discover content that aligns with their interests and preferences, which not only enhances the user experience but also increases the likelihood of conversion and repeat purchases.
XBIZ: What important developments in content delivery technology have impacted AEBN in recent years?
STROWD: As far as streaming delivery, I would have to say that the transition to adaptive streaming technologies was the most significant implementation over the past several years. Back when I wore my tech-nerd hat most days, I would go to streaming media conferences and ask continually why we had to make users select bracketed bit rates to play video rather than dynamically chunking and switching bit rates based on throughput, and why we couldn’t use a single file set as a source to dynamically transmux to other container formats based on the requesting device.
Back then, many thought I was crazy to ask! But eventually the tech caught up with certain server and codec technologies, while at the same time we were working on a home-rolled solution to meet our specific requirements based on the DASH specs for adaptive delivery. As codecs and technologies evolve, there is always a need to evaluate new technologies and weigh the proper time to adopt and integrate them. With a library of several hundred thousand titles, that can seem like a very daunting task for sure. Making that transition is often akin to “changing a wheel on a moving car.”
XBIZ: Do you anticipate incorporating AI into AEBN? If so, how?
STROWD: We are very interested in utilizing AI tech to better engage users, by analyzing their viewing patterns and content, star, studio and genre preferences so we can present them with content and promotions to which they are most likely to respond.
By presenting content recommendations, features, promotions and communications that are custom-tailored to each user, you offer the best possible user experience — and theoretically increase engagement and sales as a result. This is our starting point for utilizing AI, though there are myriad other potential uses we are looking into and watching carefully.
XBIZ: How do you incorporate feedback from consumers and B2B partners to improve your product offerings and overall business?
WAGES: Feedback from consumers and business partners is one of our most valuable resources in product development. It can be easy to overlook problems when you are very close to a project. When we redeveloped our platform, we extensively used customer surveys and even recruited users to help us find things we missed. We analyzed their feedback to discover their preferences, areas they felt could use improvement, and corner case errors. Their input helped us to improve the interface in material ways more quickly.
We maintain close relationships with our B2B partners. Through regular communication, we have found their feedback invaluable. Partner input has been used to identify areas for collaboration, address operational challenges and explore opportunities for mutual growth. Recently, feedback from a partner prompted us to change a genre category name for more clarity. Even small changes can make a difference! So when partners speak, we listen. We appreciate their time, and we are always looking for ways to improve.
XBIZ: Tell us about the team behind AEBN and the company culture.
WAGES: We have an outstanding team. Some have been with the company since it was founded, and many for more than 20 years. There is such a diverse range of skills and experiences at the table, and we know we are fortunate. The company culture emphasizes collaboration, transparency and accountability.
STROWD: AEBN was founded by a small group of friends and investors, and I 100% believe that was a great contributing factor to our initial success. We have attempted to foster and maintain that sense of “family and friends” as a main defining aspect of our corporate culture.
XBIZ: What’s next for AEBN, both in the coming year and long-term as far as big picture goals?
WAGES: 2024 looks like it is going to be an exciting year at AEBN. 2023 was a year of overhauling and refining processes. We expect to continue to make back-office improvements that should save us time and help us stay focused and productive. The company plans to enhance its technology infrastructure, explore new distribution channels and keep a keen eye on emerging trends.
Long-term partners of AEBN will likely notice small changes here and there. New partners and consumers should find our interfaces to be more intuitive with each development cycle.
Longer-term plans include further diversification of revenue streams, expanding into new markets and investing in advertising, research and development. The big picture is about AEBN sustaining its position as a valued partner and resource within the adult industry.
