Ev recently discovered Netflix, and mentioned they could stand to make a lot of money if they carried adult titles in their catalog.
The first time I checked out netflix (maybe six months ago, when I first signed up), for kicks I looked for adult titles and noticed they had a good deal of porn in the catalog. At the time, a coworker of mine mentioned someone they worked with 2-3 years ago used to love the netflix service, back when it first launched. We guessed it could have been for that reason, that they were renting adult titles.
I figured it was perfect, and I bet it got their business off the ground. How many people actually like going through the double-saloon doors at their local video hut? Even in my loneliest college days, I was too worried about how everyone might scrutinize me, so I never (and still haven't to this day) set foot in that section of a video store. If I was 20 and single, I'd probably be using netflix for porn, just to avoid the public embarrassment of it all.
I noticed tonight after attempting a search, there are no more signs of adult titles, and adult is no longer a listed genre. I still see a remnant, in the actor listings. The fourth result on a search for "jenna" is a link to the popular porn actress, but there are no longer any titles listed at netflix. Also noted by Joe, their robots.txt file asks search engine spiders to skip the /MatureGenre section.
I wonder if there were some problems, with people ordering adult titles on others' accounts, or if they got too many letters from concerned parents.