He lost me on this blanket statement, too.
First off it's simply not true (there were millionaires outside of porn) and he makes it sound as if starting a porn biz would be the surefire way to become rich.
I wonder how that's supposed to work because I'd imagine if there's one example for a "saturated market" then it would be porn? You're not only competing against a whole set of major players in each imaginable segment, you're also competing against bittorrent, porntube and the like. I somewhat doubt that one could get a foot down there without some serious warchest.
1. The people who started startups wanted to make money just as badly, they just didn't want to tell mom that they were in the porn business.
2. I'm really lucky I love porn.