What most people don't understand, however, is how badly the adult industry is hurting right now.
In the late 90's, early 00's, the adult industry absolutely exploded thanks to the internet. Millionaires were being made every day. Really the only thing you had to do was put up a site with a few images and videos, pay someone to link to you, and you could see the money start rolling in.
Then, the affiliate model came into play, and TGPs were created (thumb gallery posts). Some owners complained that these would hurt sales because affiliates were giving away content for free. It didn't hurt - in fact, sales grew much stronger.
MGPs followed (movie gallery posts), where images were replaced with short video clips. Sales remained strong. The industry was quick to see how these tools benefited them.
What the industry did not see coming, however, were the tube sites. How can you have a profitable business selling adult videos and images online when some website is letting you stream full-length videos for free? Why would you pay for adult content? Thus, adult companies have been dropping like flies. Not only providers, but also payment processors. Millions have been lost or stolen.
I know, I know, "Boohoo those poor porn people aren't getting their money"... but what if you woke up tomorrow and realized that someone was giving away YOUR software for free (assuming you've created software that is not open sourced)? All of a sudden your income gets sliced and diced.
Nowadays, the only adult companies making a good amount of money are those that offer a more "personal" experience - live cam shows, girls/boys who blog with their members and do requests. Things you can't pirate: the human experience.
Oh, and gay sites. Gay always sells.
Porn companies can't really go after these illegal porn tube sites. Many are based in China, and the owners are hidden behind layers of privacy sheets. The know what they're doing is hurting thousands of people, but their greed for personal profits are first in their minds.
While I would not like receiving robocalls from lawyers threatening to sue me if I don't settle, I can see how some of these guys really have no choice but to turn to litigation to recoup some of their lost income.