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Re: Even porn industry hit by slumping economy
Even porn industry hit by slumping economy
Rise of amateur video also cutting into no longer recession-proof industry
By Michael Ventre
msnbc.com contributor
updated 12:03 p.m. ET, Sun., Jan. 25, 2009
The Los Angeles County Economic Development Corporation estimates that in an average year the adult entertainment industry — which is headquartered primarily in Southern California — registers total sales of $12.6 billion.
Recently Larry Flynt, head of the Hustler empire, and Joe Francis, the man behind the “Girls Gone Wild” series, requested a $5 billion bailout from Congress.
Is it that bad out there?
The rest of the nation is reeling from a severe economic downturn. Yet the conventional wisdom about the adult entertainment business is that it is recession-proof.
And that thinking is consistent with the behavior of mainstream Hollywood. In times of economic difficulty throughout history — even during the Great Depression — people still found the relatively small sums of money to pay for movies and keep their spirits up.
This time in the adult industry, though, it may be different, partly because of the current conditions and partly because of the drift by consumers toward new options.
“They are definitely struggling,” said Jack Kyser, an economist with the LACEDC. “They are subject to piracy like the mainstream industry is, and that siphons revenue away. Then there are a lot of amateurs in the online industry, which is growing rapidly, and they don’t charge for it.
“The industry is really seeing a change in their business model.”
AVN Media Network, the most prominent overseer of the business, publishes trade publications for the adult entertainment industry and puts on trade shows. Paul Fishbein, chairman of AVN, is entering his 27th year in the business, “and this is the first time I can honestly say the adult business is not recession-proof.”
“Everybody I’m talking to says the business is down anywhere from 20 to 30 percent,” he explained. “That’s in line with the rest of the economy. People in the retail sector are down anywhere from 10 to 40 percent.”
Why buy the cow ...
While the recession has something to do with it, Fishbein said, the availability of cheaply made adult fare online is cutting into the cash flow for traditional outlets and establishments.
“There’s enough free porn on the Internet that, if you don’t care about quality, you can get what you want,” Fishbein said. “Plus the DVD business put out 13,000 new releases last year. That’s just too much.
“There’s too much stuff out there. The economy is bad. And there is a lot of free porn. So it’s a perfect storm that is affecting everybody’s business.”
Yet two of the more notable names in adult entertainment seem to be weathering that tempest at least adequately, for the time being.
Even though Francis joined with Flynt in asking Congress for a handout — whether jokingly, half-jokingly, seriously, or all of the above — he is comforted by the fact that “Girls Gone Wild” is a recognized brand with an ardent following.
“We offer reality product. We don’t do hardcore,” he said. “We’re heavily advertised. There’s a comfort zone in choosing ‘Girls Gone Wild.’ We’re No. 1 in all categories.”
Francis’ operation benefits from the fact that it doesn’t have to pay actresses, or only on rare occasions. Low overhead, more profit. Also, “Girls Gone Wild” can be sold in retail outlets that won’t sell hardcore pornography, another advantage.
What Francis is more upset about than the current economy is the frequent pirating that occurs with his product. “We’re facing what the music business faced a few years ago,” he said. “These sites are stealing our content. We want copyright laws enforced.”
Vivid Entertainment Group deals mostly in adult films and has had stars like Tera Patrick, Jenna Jameson, Briana Banks and Savanna Samson on its marquee. Its president, Steven Hirsch, said his company also depends on loyal customers who want high-quality material.
“We’re fortunate. We have a brand,” he said. “People know who we are. Our girls work exclusively for us. For the past 25 years we’ve had the reputation of producing quality movies.”
But his business has also been affected by both the current economy and developments in the marketplace, he said. “The DVD business is down about 30 percent from year to year,” he said. “When it comes to adult movies now, people go online. So we’re focusing on the vivid.com subscription Web site. We’re also looking to new technologies, adult entertainment on cell phones, all of the emerging businesses that will help make up for the loss on the DVD side.”
Both Francis and Hirsch said they didn’t expect any layoffs in their businesses, nor have they cut back on production. But they’re still feeling the pinch.
“I never thought the adult industry was recession-proof,” Hirsch said, “but it seemed in the past we could hang in there. This time, though, we’re dealing with a downturn in DVD sales at the same time there is an economic downturn.”
Of course, in the adult business, like any business, there is the small businessman, the little guy. Rob Rotten is an adult actor, director and producer and head of Punx Productions. When he makes a film, he said, “I have my fingers in everything, including post production and box covers.”
“We’re in a transition stage,” said Rotten, who has been in the business for nine years. “I don’t necessarily think it’s a bad thing, recession or not. It was bound to happen. And I wouldn’t blame it totally on amateur sites.”
The Northern California-based Rotten believes the adult entertainment business has been hurt by opportunists who try to produce low-quality films and charge exorbitant sums in order to make a quick buck. “It’s a lot of low-budget gonzo stuff released into an oversaturated market,” he said. “I think the general public just got sick of paying $49.95 for a poorly edited, poorly shot, poorly made video.”
As opposed to many who were hit unexpectedly by the severity of the downturn, Rotten said he was ready. “I knew there would be a backlash and I prepared for it,” he said. “I’ve downsized and I limit the number of movies I make a year.”
Rotten offered a tip that could probably apply to just about any struggling business with a product in today’s economy. “The movies I put out and are affiliated with, we actually care about them,” he said. “Even though it’s an adult movie, I try to make the best movie I can within my allotted budget.
“There are some companies that are doing better now than they were three years ago, because they never let go of the quality aspect. They’re not just shipping wood.”
© 2009 msnbc.com. Reprints
- mickronson
- Rep: 118
Re: Even porn industry hit by slumping economy
Does this mean the plot lines will suffer? What about the music scores? the masterpieces
Re: Even porn industry hit by slumping economy
Seriously, the real problem is actually over-saturation.
The problem is hundreds, if not thousands are involved in the business, and every month might see 1,000 titles released, all technically 'high profile' in their business.
Unless you're a real freak, no one is going to buy every title that comes out, or even 2-3. Most porno shops mark up DVD's to retail prices, and frankly, most people only watch a porno maybe once or twice. No one is going to pay $30 bucks for a DVD, they can download off the internet for free. Watch it, and usually delete it.
I also think there's a bit of feeling amongst those out there, that "it's just porno". They look at it as an underground, bad thing, like a drug addict stealing a massive stash of goods off of a dealer. They don't feel bad at all illegally bootlegging it. And the irony of it all, the people that probably deserve the MOST money of the entertainment industry, are the adult industry.
If the porno industry is too survive, guys like Hustler and Vivid, and the bigger companies, have to start buying out smaller companies, and then limiting releases. This reduces costs, singles out main releases, and brings down the oversaturation.
Unfortuantely like others alluded too, because production values are low, anyone can make a porno. The best selling pornos of all time have actually been amateur home videos, and not professionally shot material.
The big companies are going to have to start making a monopoly of the business, in order to stay alive.
Re: Even porn industry hit by slumping economy
BLS-Pride wrote:Invest in a good camera and start making your own.
Amen!
Just stay away from the night vision. I some light in the room anyway.
There is just too much porn. I love me some porn as any warm blooded male does but it comes to a point where do people really get off watching a dude fuck a horse!? Just because you can do it doesn't mean you should. That is just fucked up in the head on a whole different level. I could see the porn companies merging into a few super porn companies too. The should rely on the internet more. They make good money on the net and not everything makes it out for free. Do some brainstorming they should be the last people to get a bail out. How bout all those who lost retirement money and all those small business owners losing their whole lives because of all this bullshit.
Re: Even porn industry hit by slumping economy
I think it's the free porn out there that killing them. It's no longer just a few nudie pics or 8 second samples, I'm talking full 20 minutes videos. Of all varieties too, and I don't think it's all bootlegged, alot seems like amateur. Why that many people put porn up on the net for free is beyond me... but whatever, I'm watchin'.
Re: Even porn industry hit by slumping economy
Agreed, and I think the business underestimated the appeal of amateur videos. I personally hate amateur videos. I can live them, so to watch them actually bores the hell out of me.
I watch porn to escape, no different than any other entertainment medium. I want to see ridiculous situations, weird ass stuff, anything, because it'd never happen in a million years if it was me. I've never met any girl that's that realistic of a whore and in alot of ways it's almost a misogynistic fantasy.
But for a reason, a bit borderline-creepy, people love these amateur videos because they think it could be their neighbors. It has mass-appeal.
I'll personally hold on to the fake stuff for dear life. No girl in real life is usually that sexually adventurous, or if they are, not enough for a man's liking.
Re: Even porn industry hit by slumping economy
I'm an anomaly in the sense that I'm one of the only guys on the planet that doesn't give a shit about porn. Never really bothered with it much, not even when I was a teen. Have I watched/read porn before? Of course. It just never really became much of a factor in my life.
The only thing on my computer that even resembles porn is some pics of Felicity Fey, and its just some 'normal' nude pictures. I actually think she would look better if her tits were just a tad smaller. 
Like others mentioned, I never understood how this industry survived after the internet era arrived. To use the example of the model above, none of the pics I have came from her official site(which requires a paid membership). While I don't have any of her videos, they are a mouse click away for free. She must have a hardcore fanbase because she couldn't possibly make any money otherwise.
