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You should inform the adult entertainment industry of your opinion. They have suffered huge losses from freely available content. I posted a link to a USA Today article about the topic a few pages back.
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The free online porn isn't public domain material, and it isn't generally promotional content offered by the copyright holder. Also, porn is pretty much fungible. There isn't all that much difference in quality from one to the next.
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Of course it is a form of subsidy. It took time and skill to write the fanfic. That time and skill is worth money, as is anyone's time. By distributing the work for free they are effectively subsidising the activity of writing.
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An author can't subsidize themselves, that's an oxymoron. If someone was paying the author to write, that would be a subsidy. Distributing fan fiction without payment isn't in any way, shape or form a subsidy.