NYT article on pornography as a business.
May 20, 2001
Naked Capitalists: There's No Business Like Porn Business
By FRANK RICH
In late January 1998, during the same week that America first heard the ribald tale of the president and the intern, Variety tucked onto Page 5 a business story that caused no stir whatsoever. Under a Hollywood dateline, the show-biz trade paper reported that the adult-video business "saw record revenues last year" of some $4.2 billion in rentals and sales.
It soon became clear to me that these bicoastal stories, one from the nation's political capital and the other from its entertainment capital, were in some essential way the same story.
In the weeks that followed, Washington commentators repeatedly predicted that the public would be scandalized by the nonmissionary-position sex acts performed illicitly in the White House. But just as repeatedly voters kept telling pollsters that they weren't blushing as brightly as, say, Cokie Roberts. The Variety story, I realized, may have in part explained why. An unseemly large percentage of Americans was routinely seeking out stories resembling that of the president and the intern -- and raunchier ones -- as daily entertainment fare.
The $4 billion that Americans spend on video pornography is larger than the annual revenue accrued by either 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 when you toss in porn networks and pay-per-view movies on cable and satellite, Internet Web sites, in-room hotel movies, phone sex, sex toys and that archaic medium of my own occasionally misspent youth, 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."
Yet in a culture where every movie gross and Nielsen rating is assessed ad infinitum in the media, the enormous branch of show business euphemistically called "adult" is covered as a backwater, not as the major industry it is. Often what coverage there is fixates disproportionately on Internet porn, which may well be the only Web business that keeps expanding after the dot-com collapse but still accounts for barely a fifth of American porn consumption. Occasionally a tony author -- David Foster Wallace, George Plimpton and Martin Amis, most recently -- will go slumming at a porn awards ceremony or visit a porn set to score easy laughs and even easier moral points. During sweeps weeks, local news broadcasts "investigate" adult businesses, mainly so they can display hard bodies in the guise of hard news. And of course, there is no shortage of academic literature and First Amendment debate about pornography, much of it snarled in the ideological divisions among feminists, from the antiporn absolutism of Catherine MacKinnon and Andrea Dworkin to the pro-porn revisionism of Sallie Tisdale and Susie Bright.
I'm a lifelong show-biz junkie, and what sparked my interest in the business was what I stumbled upon in Variety -- its sheer hugeness. Size matters in the cultural marketplace. If the machinations of the mainstream TV, movie and music industries offer snapshots of the American character, doesn't this closeted entertainment behemoth tell us something as well? At $10 billion, porn is no longer a sideshow to the mainstream like, say, the $600 million Broadway theater industry -- it is the mainstream.
And so I went to the San Fernando Valley, aka Silicone Valley, on the other side of the Hollywood Hills, to talk with the suits of the adult business. I did not see any porn scenes being shot. I did not talk to any antiporn crusaders or their civil-libertarian adversaries. I did not go to construct a moral brief. I wanted to find out how some of the top players conduct their business and how they viewed the Americans who gorge on their products.
Among other things, I learned that the adult industry is in many ways a mirror image of Hollywood. Porn movies come not only in all sexual flavors but also in all genres, from period costume dramas to sci-fi to comedy. (One series is modeled on the old Hope-Crosby "Road" pictures.) 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), its own prima donnas and cineastes. 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, now probably to be sold to Rupert Murdoch), were also major sponsors of the Bush-Cheney Inaugural. Porn even has its own Matt Drudge -- a not-always-accurate Web industry gossip named Luke Ford, who shares his prototype's political conservatism and salacious obsessiveness yet is also, go figure, a rigorously devout convert to Judaism.
I didn't find any porn titans in gold chains, but I did meet Samantha Lewis, former real-estate saleswoman and current vice president of Digital Playground, whose best-selling "Virtual Sex" DVD's are, she says, "the Rolexes and Mercedeses of this business." I talked with Bill Asher, 38, the head of Vivid, who is an alumnus of Dartmouth and U.S.C. (for his M.B.A.) and Lawry's (the restaurant chain). I listened to the story of John Stagliano, who was once a U.C.L.A. economics major with plans "to teach at the college level" but who instead followed his particular erotic obsession and became Buttman, the creator of hugely popular improvisational cinema-verite porn videos that have been nicknamed "gonzo" in honor of the freewheeling literary spirit of Hunter S. Thompson. A political libertarian, Stagliano was for a while a big-time contributor to the Cato Institute.
If the people who make and sell pornography are this "normal" -- and varied -- might not the audience be, too? It can't be merely the uneducated 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," as Bill Asher of Vivid Pictures puts it. There is geriatric porn (one fave is called "Century Sex"), and there's a popular video called "Fatter, Balder, Uglier." Oral sex sells particularly well in the Northeast, ethnic and interracial videos sell in cities (especially in the South), and the Sun Belt likes to see outdoor sex set by beaches and pools.
Yet such demographics are anecdotally, not scientifically, obtained. So few Americans fess up when asked if they are watching adult product, says Asher, "that you'd think there is no business." But in truth, there's no business like porn business. Porn is the one show that no one watches but that, miraculously, never closes.
Porn doesn't have a demographic -- it goes across all demographics," says Paul Fishbein, 42, the compact and intense man who founded Adult Video News. "There were 11,000 adult titles last year versus 400 releases in Hollywood. There are so many outlets that even if you spend just $15,000 and two days -- and put in some plot and good-looking people and decent sex -- you can get satellite and cable sales. There are so many companies, and they rarely go out of business. You have to be really stupid or greedy to fail."
He points me toward
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