Ofcom Broadcast Code Consultation

(17-12-2009 07:18 )aceman65 Wrote:  So If that part is true, then what's to stop a babe channel going pay-per-view to cover itself legally, but only charging 5p per night to watch. There no law to say they can't do that and still keep there customers and show stronger material.

Independent monthly subscription channels in the Adult section of the Sky EPG have to pay BSkyB £1.55 (+VAT) per month, per subscriber. (Which is around 6p per night)

However I recall that the contribution to Sky is quite a bit higher than 6p per night for "Pay Per Night" viewing, you also have to take into account the cost of credit/debit card handling, administrative fees etc which would push the cost quite a bit higher.

So this theory would not be viable unless you had a high number of subscribers who actually called in as well, or you charged a higher subscription price for the majority of people who just watch.
Since Live XXX and the encrypted version of TVX Call Girls no longer operate, then I would assume that this business model doesn't make money.