Interesting piece in the Economist.
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 …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 Economist — and the industry — think that piracy is to blame. I wonder: surely the rise of user-generated porn has something to do with it too. At any rate, those stories of ‘amateur’ porn being sold freely in pubs might not all be urban myths. And some of those camcorders being sold by the truckload must be used for, er, creative purposes.
En passant And don’t you just love the irony of the porn industry trade association calling itself “the Free Speech Coalition”? Almost as funny as the Irish alcoholic drinks industry calling itself the “Hospitality Association”.