The study also found that as of June 2008, 36 percent of Internet users visit at least one adult website each month, according to comScore (2008) (based on comScore’s monitoring of web browsing by users who agree to install comScore’s tracking software). Possibly Obama voters also took less time in the voting booths, and left them in more sanitary condition! Six out of the lowest ten porn consuming states gave their electoral votes to Barack Obama. Number 10 on the list was West Virginia at 2.94 subscriptions per 1000, while number 41, Michigan, averaged 2.32, a very small statistical span.Įight of the top 10 pornography consuming states went for John McCain in last year’s presidential election – porn sodden Florida, and Hawaii, Obama’s home state, were the exceptions. The biggest pornography consuming state, Utah, averaged 5.47 adult content subscriptions per 1000 home broadband users Montana bought the least with 1. Based on about two years of credit card data from 2006 to 2008 that included a purchase date and each customer’s postal code, the study found that after controlling for differences in broadband internet access between states and adjusting for population, there is a relatively small difference between states with the most adult purchases and those with the fewest. Overall, the Zip is stuck between a rock and a hard place.Īnd with risks and competition only increasing, I suspect there could be further downside left for the Zip share price.A new study entitled “Red Light States: Who Buys Online Adult Entertainment?” by Harvard Business School Prof Benjamin Edelman, focuses on the consumption side of adult online entertainment, and in particular on subscriber demographics and consumption patterns of those who subscribe to such websites. Zip could pass on the increased funding costs to consumers, but it would risk losing customers to competitors. With interest rates on the rise, the funding cost for Zip shares will also increase, squeezing margins and profitability. The result would be a slower onboarding process and therefore adoption, one of its key differentiators from traditional credit products.īNPL’s borrow money from banks or markets and then loan that money to customers via their pay in four instalment plans. If the Zip share price was to come under the jurisdiction of the Credit Act, it would have to conduct background and credit checks. There is also a growing community sentiment that BNPL should be regulated like any other credit product.Ĭurrently, BNPL uses a regulatory loophole that exempts it from the National Consumer Credit Protection Act 2009 as it does not charge interest on its products. Loans should have been cancelled, but instead, fees were deducted from accounts. The UK regulator this week cracked down on the four BNPL operators for “potentially unfair and unclear” consumer contracts.Ĭustomers were charged late fees after a product was returned. The biggest risks to the Zip share price is regulation and borrowing costs. Zip now looks like a commodity, with little pricing power or differentiation. Paypal Holdings Inc ( NASDAQ: PYPL) and Apple Inc ( NASDAQ: AAPL) released their own copycat versions.Ĭommonwealth Bank of Australia ( ASX: CBA) launched StepPay with no interest charges, no monthly or annual fees.Īll of sudden, there was very little separating the army of BNPL companies. Then main competitor Afterpay was swallowed up by Block Inc CDI ( ASX: SQ2).īut as BNPL gained mainstream adoption, competitors fought back. Subsequently, the Zip share price rocketed. Investors thought buy-now-pay-later (BNPL) would end the credit card industry, and banks would be at the mercy of Afterpay and Zip. What is the 2022 outlook for the Zip (ASX: Z1P) share price?Ī large part of the decline has stemmed from market sentiment. Z1P share price Source: Rask Media Z1P 2-year share price What went wrong with the Zip share price?įrom its high of $14.53 one year ago, the Zip share price has been skiing downhill to now rest at $2.73. Here’s why I’m avoiding Zip shares for now. The Zip Co Ltd ( ASX: Z1P) share price is down 81% but investors should be cautious jumping in simply because of the dramatic decline.
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