I've heard the same stories about how big porn is--in financial terms. I never thought it was ever intended to be limited to the video producers in California. I always just assumed that they were talking about ANYTHING classified as pornography by the conservative right wingers including Playboy, Penthouse, all other magazines hardcore or softcore, The Bunny Ranch, The Spearment Rhino, all other clubs from bikini dancers, to topless clubs, to whorehouses, all websites that show any sort of pornography hardcore or not, and all types of video at home, on cable, or in hotels or x-rated movie theaters.
I suspect that if you look at it with this broader definition, it would seem like a more plausable claim. I would also bet that for every dollar spent on tickets to live sporting events and pay per view sporting events, that there are more people spending a buck on porn if you describe it in broader terms than just DVD's or VHS tapes for home use.
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--Some of us look for The Way in opium and some in God, some of us in whiskey and some in love. It is all the same Way and it leads nowhither.