"AT TEN BILLION DOLLARS,  PORN IS NO LONGER A SIDESHOW TO THE MAINSTREAM,
IT IS THE MAINSTREAM"

NEW YORK TIMES -MAY 20th 2005

The adult film business has evolved in to a multimedia, multi-billion dollar industry. The explosion of demand not only here in the U.S. but worldwide has created an incredible opportunity for those willing to capitalize on this profitable market. The Internet, cable and satellite markets are offering an ever-increasing availability of high quality adult films, 24 hours a day seven days a week. Add in the over 100,000 U.S. retail outlets offering all types of adult products, DVD's, magazines, videos etc. and you can begin to see why we are so excited about this business.

The $4 billion that Americans spend on video pornography is larger that the annual revenue accrued by the N.F.L., the N.B.A. or Major League Baseball. But that's literally not the half of it: the porn business is estimated to total between $10 billion and $14 billion annually in the United States alone when you toss in porn networks and pay-per-view movies on cable and satellite, Internet Web sites, in-room hotel movies, sex toys and that archaic medium, magazines. Take even the low-end $10 billion estimate (from a 1998 study by Forrester Research in Cambridge, Mass.) and pornography is a bigger business than professional football, basketball and baseball put together.

People pay more money for pornography in America in a year than they do on movie tickets, more than they do on all the performing arts combined. As one of the porn people I met in the industry's epicenter, the San Fernando Valley, put it, 'We realized that when there are 700 million porn rentals a year, it can't just be a million perverts renting 700 videos each.' At $10 billion, porn is no longer a sideshow to the mainstream like,say, the $600 million Broadway theater industry ' it is the mainstream. Adult has a fabled frontier past about which its veterans wax sentimental ' the 'Boogie Nights' 70's, when porn was still shot only on film and seen in adult movie theaters. (The arrival of home video revolutionized porn much as sound did Hollywood.) Adult also has its own Variety (Adult Video News), its own star-making machinery (the 'girls' at Vivid and Wicked are promoted like bygone MGM contract players); it's own prima donnas.

It has (often silent) business partners in high places: two of the country's more prominent porn purveyors, Marriott (through in-room X-rated movies) and General Motors (though its ownership of the satellite giant DirecTV). It can't be merely the un-educated and unemployed who shell out the $10 billion. And it isn't. Porn moguls describe a market as diverse as America. There's a college-age crowd that favors tattooed and pierced porn performers; there's an older, suburban audience that goes for 'sweeter, nicer, cuter girls". Remember the old saying, "Theres something for everyone" that applies to adult entertainment as well as the internet. A beautiful business marriage.

Even in an economic downturn, everything's coming up porn. Newly unemployed dot-com techies who can't find jobs in Silicon Valley are heading to Porn Valley and the internet, where the opportunities are expanding, not contracting. 'There are opportunities here that Paramount will never have in terms of growth,' Says Bill Asher from Vivid Video. 'Adult entertainment travels well internationally and is evergreen. Five-year'old product is till interesting to someone; it's not yesterday's news like a five-year-old Hollywood blockbuster.

Our costs are relatively fixed. 'As there's more distribution, 90 cents of a dollar hits the bottom line.' The absence of adult retail stores in conservative pockets of the country is no longer a barrier. 'You can get an internet connection as well as a dish relatively anywhere,' Asher says, 'and get whatever you want.' Access to the internet gives a person privacy as well as being able to view or obtain materials they wouldn't normally have in their own community video store.

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