A bailout will not revive it as long as there are exhibitionists in this world.
Probably a good time for people like Larry Flynt and Joe Francis to just retire and fade away...
Yup. It's a changing business model. A porn studio making relatively high-budget movies and hiring fairly expensive porn actresses has a tough time competing with an attractive woman with a website who makes short porn movies out of her home. For maybe $30/month, people can sign up for a "package" of porn websites giving them access to literally thousands of short porn videos. That seems like a better deal than spending $30 for one porn DVD produced by Vivid Video or Hustler.
Anyway, you don't even need to pay the $30/month. There are a number of websites where porn videos are posted for free (including amateur, semi-pro and professional porn)