1/13/2008

Porn companies challenged by Internet sites

Filed under: — By Aviran Mordo @ 1:07 am

After years of booming sales supported by videotapes, DVDs and the Internet, the adult film industry is being challenged by easy video-sharing Web sites offering explicit content for free.

“We’re dealing with rampant piracy, tons of free content,” said Steven Hirsch, co-founder of privately held Vivid, the best-known studio making sex films.

Vivid once earned 80 percent of its roughly $100 million a year from DVD sales, but last year that fell to 30 percent, Hirsch said in an interview.

The Internet challenge, a topic of discussion at the biggest adult film expo of the year in Las Vegas this week, has already presented itself to the music industry and other mainstream entertainment.

Much of the Internet competition for the U.S. porn world, largely based in southern California, comes from Web sites like Toronto, Canada-based XTube.com, whose format is modeled after Google’s YouTube.

Some of the videos on the XTube site come from commercial studios while others are posted by amateurs.

 

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