Globally, pornography is a large scale business with revenues of nearly $100 billion[39] which includes the production of various media and associated products and services. The industry employs thousands of performers along with support and production staff. It is also followed by dedicated industry publications and trade groups as well as the mainstream press, private organizations (watchdog groups), government agencies, and political organizations. According to a 2005 Reuters article, "The multi-billion-dollar industry releases about 11,000 titles on DVD each year."[40] Pornographic films can be sold or rented out on DVD, shown through Internet and special channels and pay-per-view on cable and satellite, and in adult theaters. However, by 2012, widespread availability of illegally copied content and other low-cost competition on the Internet had made the pornographic film industry smaller and reduced profitability.[38]
The global pornographic film industry is dominated by the United States, with the San Fernando Valley area of Los Angeles being the heart of the industry.[41] This being the case, most figures on the size of the industry refer solely to the United States. Pornographic film studios are also centered in Houston, Las Vegas Valley, New York City, Phoenix and Miami. These produce primarily amateur or "independent" porn films.[citation needed]
In 1975, the total retail value of all the hardcore pornography in the United States was estimated at $5–10 million.[1] The 1979, Revision of the Federal Criminal Code stated that "in Los Angeles alone, the porno business does $100 million a year in gross retain volume." According to the 1986 Attorney General's Commission on Pornography, American adult entertainment industry has grown considerably over the past thirty years by continually changing and expanding to appeal to new markets, though the production is considered to be low-profile and clandestine.[42]
The total current income of the country's adult entertainment is often estimated at $10–13 billion, of which $4–6 billion are legal. The figure is often credited to a study by Forrester Research and was lowered in 1998.[43] In 2007 The Observer newspaper also gave a figure of $13 billion.[44] Other sources, quoted by Forbes (Adams Media Research, Veronis Suhler Communications Industry Report, and IVD), even taking into consideration all possible means (video networks and pay-per-view movies on cable and satellite, websites, in-room hotel movies, phone sex, sex toys, and magazines) mention the $2.6–3.9 billion figure (without the cellphone component). USA Today claimed in 2003 that websites such as Danni's Hard Drive and Cybererotica.com generated $2 billion in revenue in that year, which was allegedly about 10% of the overall domestic porn market at the time.[45] The adult movies income (from sale and rent) was once estimated by AVN Publications at $4.3 billion but the figure obtaining is unclear. According to the 2001 Forbes data, the annual income distribution is the following:
Adult video
$500 million to $1.8 billion
Internet
$1 billion
Magazines
$1 billion
Pay-per-view
$128 million
Mobile
$30 million[46]
The Online Journalism Review, published by the Annenberg School of Communication at the University of Southern California, weighed in with an analysis that favored Forbes' number. The financial extent of adult films, distributed in hotels, is hard to estimate—hotels keep statistics to themselves or do not keep them at all.[47]
The world's largest adult movie studio Vivid Entertainment generates an estimated $100 million a year in revenue, distributing 60 films annually[48] and selling them in video stores, hotel rooms, on cable systems, and on the internet. Spanish-based studio Private Media Group was listed on the NASDAQ until November 2011. Video rentals soared from just under 80 million in 1985 to a half-billion by 1993.[49] Some subsidiaries of major corporations are the largest pornography sellers, like News Corporation's DirecTV. Comcast, the nation's largest cable company, once pulled in $50 million from adult programming. Revenues of companies such as Playboy and Hustler were small by comparison
References
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