as far as I know, the magazines are dead. I mean, they still sell them, but like you said, with internet and the such, what's the point?
Well, not everyone is computer literate enough to find the free websites for one, for two, the magazines and movies are still cheaper than actually signing up for any of the pay to view porn websites, so they do have a decent base of buyers. And for kids, they still are a holy grail when they find one, lol.