Free Republic
Browse · Search
News/Activism
Topics · Post Article

Skip to comments.

Obscene Losses
Portfolio.com ^ | November 2007 Issue | Claire Hoffman

Posted on 10/23/2007 9:40:21 AM PDT by Lorianne

DVD sales are in free fall. Audiences are flocking to pornographic knockoffs of YouTube, especially a secretive site called YouPorn. And the amateurs are taking over. What’s happening to the adult-entertainment industry is exactly what’s happening to its Hollywood counterpart—only worse. ___

On Friday, May 18, Steve Hirsch, founder of Vivid Entertainment Group, the world’s largest producer of adult videos, was expecting a mysterious visitor. But Stephen Paul Jones was late. When Jones, an unknown figure in the pornography world, finally arrived in the all-white reception area of Vivid’s Los Angeles offices at 2 p.m., he was apologetic. His private plane had broken down, he explained, and he was forced to fly commercial. Hirsch, dressed in a T-shirt and jeans, found that excuse a little slick. But he was eager to speak with Jones, so he let it slide and introduced him to two Vivid colleagues. When the four men sat down in the company’s conference room, Jones got right to the point: He wanted Vivid to buy his website, YouPorn.com.

As its name suggests, YouPorn lets users upload and watch a virtually unlimited selection of hardcore sex videos for free. The user-generated clips on YouPorn—like those on YouTube, the site it mimics—range from the grainiest amateur footage to the slickest professional product. Also, like YouTube, the site has far more traffic than income. Just nine months after going live, in September 2006, YouPorn was on pace to log about 15 million unique visitors in May, Jones told the Vivid executives, and its audience was growing at a rate of 37.5 percent a month. Today, YouPorn is the No. 1 adult site in the world; Vivid.com, a pay site, is ranked 5,061. According to Alexa, a website-ranking company, YouPorn’s overall rank is higher than CNN.com (84), About.com (114), and Weather.com (195). (Those numbers are averages for the three-month period from mid-June to mid-September.)

Blond, barrel-chested, and wearing a sport coat, Jones oozed Silicon Valley confidence. According to Hirsch, he mentioned his Stanford M.B.A. repeatedly. He offered reams of documents and audience data, emphasizing YouPorn’s global reach. (Only 12 percent of the site’s traffic comes from the U.S., he said.) Jones told the men that he and one other executive, a young Malaysian man living in Australia, were the owners of YouPorn, and he stressed that with the site’s traffic, its opportunities were manifold: dating, gaming, mobile content, pay-per-view, webcams (“already very popular in China”), and more. He shared his vision of turning YouPorn into a “very cool brand, perhaps the Virgin of adult entertainment.” As Jones rambled on, Hirsch and his executives traded raised eyebrows. Malaysia?

Still, they were intrigued by YouPorn—and more than a little intimidated by its size. In recent years, competition from the internet had cut deep into the porn studio’s revenues. DVD sales, once Vivid’s financial bedrock, were down almost 50 percent since 2004, and the proliferation of cheap Web-based videos was stealing market share from the company, which specializes in high-end sex films. Vivid and its top rivals—Wicked Pictures, Evil Angel, Digital Playground, Red Light District, Penthouse Media Group, and Hustler, to name a few—had lately been getting an unwanted glimpse of the overnight crisis that the file-sharing revolution brought to the music industry and Craigslist brought to newspaper classified ads.

The meeting lasted an hour. As Hirsch listened to Jones’ pitch, he considered the risks of acquiring YouPorn. Hirsch had been in the adult-entertainment business long enough to be mindful of its legal pitfalls, and that was a chief concern. How do you verify the age of the participants in these thousands of sex videos—or, for that matter, the age of the audience?


TOPICS: Business/Economy; Culture/Society
KEYWORDS:
Navigation: use the links below to view more comments.
first previous 1-2021-29 last
To: pianomikey
I don’t know whether to laugh or cry. Serves the Flynt wanna-bes right, but it’s just making porn that much more easy, free and enormously widely distributed... and easier to access for children.

It's up to parents to restrict the access. Keep the computer in the kitchen or family room!

21 posted on 10/23/2007 11:46:29 AM PDT by Ace's Dad ("but every now and then, the Dragon comes to call")
[ Post Reply | Private Reply | To 17 | View Replies]

To: VaFarmer

I didn’t know that.

Great post. Go to hear you can have a band, copyright your music to protect it, and then promote your music on the net.

The bigger music distributors would simply take other people’s songs, give it to a band to record, and reap the profits knowing the smaller artist didn’t have the resources to sue.


22 posted on 10/23/2007 11:48:15 AM PDT by RinaseaofDs
[ Post Reply | Private Reply | To 20 | View Replies]

To: Ace's Dad
It's up to parents to restrict the access.

Of course, but my point is that it'll make it harder even for the latchkey kids and products permissive parenting. Anything that restricts or eliminates porn is good in my opinion, regardless of whose responsibility it is ultimately. I've changed a lot since becoming a parent.

23 posted on 10/23/2007 12:50:13 PM PDT by pianomikey (Freedom is never more than one generation away from extinction. -Reagan)
[ Post Reply | Private Reply | To 21 | View Replies]

To: VaFarmer
Its off subject but what we do is in the sport fishing industry and at the national level it has been controlled by a few “Giants” In order to participate on the national(Walmart etc...)level you basically have to bribe your way in. With the Internet we bypassed everybody and make a great living selling direct to stores and through e-commerce. I love the net!
24 posted on 10/23/2007 1:08:24 PM PDT by liberty or death
[ Post Reply | Private Reply | To 20 | View Replies]

To: pianomikey
I've changed a lot since becoming a parent.

Both my daughters keep the 'puter in the family room. Seems to work for them. Of course they watch the rest of the world for dangers, as well.

25 posted on 10/23/2007 4:40:53 PM PDT by Ace's Dad ("but every now and then, the Dragon comes to call")
[ Post Reply | Private Reply | To 23 | View Replies]

To: Lorianne; BurbankKarl
Look for many bankruptcies of production companies headquartered in Chatsworth and Canoga Park.

Besides, we now have Brazilian and Ukranian starlets blanking-the-rooster that American porn stars refuse to do...

26 posted on 10/23/2007 4:44:08 PM PDT by Clemenza (Rudy Giuliani, like Pesto and Seattle, belongs in the scrap heap of '90s Culture)
[ Post Reply | Private Reply | To 1 | View Replies]

To: Lorianne

Sort of reminds me of a story I heard about Cape Canaveral, FL in the 60s when the Cape was just getting underway. Several times houses of ill repute had tried to open and make a go of it and failed miserable. Too much free stuff running around.

OB


27 posted on 10/23/2007 4:54:46 PM PDT by OBone (Support our boys in uniform - TAKE NO PRISONERS)
[ Post Reply | Private Reply | To 1 | View Replies]

To: onedoug; stylecouncilor

ping


28 posted on 10/24/2007 3:05:32 PM PDT by windcliff
[ Post Reply | Private Reply | To 1 | View Replies]

To: windcliff

I’ll be back later.


29 posted on 10/24/2007 8:42:47 PM PDT by onedoug
[ Post Reply | Private Reply | To 28 | View Replies]


Navigation: use the links below to view more comments.
first previous 1-2021-29 last

Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.

Free Republic
Browse · Search
News/Activism
Topics · Post Article

FreeRepublic, LLC, PO BOX 9771, FRESNO, CA 93794
FreeRepublic.com is powered by software copyright 2000-2008 John Robinson