Economist article on the state of the Porn industry. I've said it before and will say it again: until the porn industry comes up with its own iTunes: a site where you can download any and all videos/individual scenes CHEAPLY, with no subscriptions or obligations, DRM free in an open format like H.264 (MP4), it will be on a one way trip down the drain. "Free" is very attractive right now, when paid is usually a rip-off.

Link to the Economist article
The trouble with pornography
Hard times
Sep 10th 2009 | LOS ANGELES
From The Economist print edition

A big industry in northern Los Angeles is among the worst hit by the recession

EVEN Nina Hartley, who became a pornographic actress in 1984 and continues to be one of its most sought-after performers at the age of 50, is feeling the recession. “Last year I did a scene a week, this year I do a scene a month,” she says. As a sex celebrity, she has not dropped her fees, charging about $1,200 for a “straight boy-girl” scene. But production has collapsed, and for younger performers so have prices.

The adult-film industry is concentrated in the San Fernando Valley—“the Valley” to Angelenos—on the northern edge of Los Angeles, so the slump in porn is yet another factor depressing the local economy. Pornography had been immune to previous recessions, so the current downturn has come as a shock.


Most of the industry consists of small private production companies whose numbers are secret, but Mark Kernes, an editor at Adult Video News, a trade magazine, estimates that the American industry had some $6 billion in revenues in 2007, before the recession, mostly in DVD sales and rentals and some in internet subscriptions. Diane Duke, the director of the Free Speech Coalition, the adult industry’s trade group, thinks that revenues have fallen 30-50% during the past year. “One producer told me his revenue was down 80%,” she says.

If the Valley used to make 5,000-6,000 films a year, says Mr Kernes, it now makes perhaps 3,000-4,000. Some firms have shut down, others are consolidating or scraping by. For the 1,200 active performers in the Valley this means less action and more hardship. A young woman without Ms Hartley’s name-recognition might have charged $1,000 for a straight scene before the crisis, but gets $800 or less now. Men are worse hit. If they averaged $500 for a straight scene in 2007, they are now lucky to get $300. For every performer there are several people in support, from sound-tech to catering and (yes) wardrobe, says Ms Duke, so the overall effect on the Valley economy is large.

The recession, moreover, has exacerbated a previous crisis. Piracy is the main problem. And the internet, with its copious free clips, is an increasingly viable alternative to the paid stuff. Pornography in general has become “like potato chips, everywhere and cheap, to be consumed and tossed,” says Ms Hartley. It’s not the same as in the golden age when she joined. “The industry will shrink and stay shrunken,” she reckons.