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All Forums > The Porn Pool > The Porn Pool Forum Page 565 > AVN: Crowded Market Calls for Consolidation
AuthorPost
-Kelly-
Senior Member

2517 Posts
5/03
Posted - Jun 23 2006 : 2:36PM
AVN: Analysis: The Playboy/ClubJenna Deal May Signal Similar Acquisitions
By: Paul Fishbein

CHATSWORTH, Calif. - Playboy’s acquisition of Club Jenna, coupled with their recent purchase of adult.com and Cinema Play, positions the softcore giant to become a major hardcore player. Beginning with the purchase of four explicit DirecTV channels from Vivid in 2001 through these two more recent deals, Playboy’s embracing of explicit fare feels right. And I’m sure the Playboy stockholders are smiling today, knowing they own a piece of Jenna.

But is this just the beginning of consolidation in the adult business? The DVD market is, by all accounts, flat, and not just in the adult market. Reports from Video Store Magazine, Variety, Video Business and others show that the big studios and independents alike are struggling to match DVD sales of recent years, while embracing every new delivery system from video-on-demand to download-and-burn.

The adult studios are doing the same, but sometimes with diminishing results. Though reports of the industry’s revenues range from $8 billion to $15 billion, the number of releases keeps skyrocketing. This year alone, new releases and new-to-DVD tittles will likely exceed 12,000.

Retailers, hence, are faced with more stocking decisions than ever before, and while that represents a bonanza for the consumer, video companies are struggling to keep shelf space.

Further exasperating the situation is the increasing number of new production companies hitting the market with weekly product. And since many companies produce roughly the same type of titles, they have trouble distinguishing themselves among consumers.

When supply outlasts demand, something has to give. Playboy’s acquisition was a branding and content opportunity: Associate yourself with the most popular name in adult and you move to the top of the heap. For Playboy’s broadcast division, adding Jenna, her content and the wildly successful Club Jenna sites makes perfectly good business sense.

Other such acquisitions will occur throughout the industry, and they, too, will be out of one company’s necessity and another’s opportunity. More deals like Metro’s recent acquisition of Video Team and Hustler buying VCA a few years back are on the horizon. Those companies are vertically integrated right down to the retail level (Metro with 86 retail locations, Hustler with nine super stores), both having strong DVD and video-on-demand presence and Hustler with its fledgling broadcast channel. You can all but feel several companies with large libraries looking to sell.

Similarly, rumors persist that a few well-established video lines want to get out of distribution altogether. They are looking for distribution deals, that, if not as lucrative as the one Vivid has with LFP, are at least as popular as the successful models created by Evil Angel, Paladin, Pure Play, Exquisite Multimedia, or a stand alone deal such as the one Ninn Worx made with Red Light District. Overhead kills companies that struggle with new release numbers of 1,200 pieces or less, as some producers report.

Consolidation could be a good thing. Certainly it won’t affect the consumer, who will still have a plethora of choices. Nor does it affect the retailer, who still gets to cherry pick the best titles to stock. A smart retailer will always take the newest, fast-moving Evil Angel, Jules Jordan or Wicked title rather than lesser derivative product that won’t rent or sell nearly as well from the likes of a Black Widow or American Hardcore, companies who barely register a blip in the industry.

Content is king, and adult content will always make money for a smart producer who spreads quality across all delivery systems. Playboy knows that, grabbing Jenna, husband Jay Grdina, adult.com and its successful businesses and playing at the top of the explicit market. But it’s a crowded explicit market, and some of the producers who end up the most successful may not be the ones who sell the most pieces to IVD and General Video, but those who figure out the best way to get someone better to do the distribution while they simply create.

-Kelly-
Senior Member

2517 Posts
5/03
Posted - Jun 23 2006 : 2:40PM
Mark Pornographer at Lukeisback has a similar take on the state of things and an optimistic view on the potential for VOD:

The Problem In Porn

Mark Pornographer writes:

The biggest problem isn't online piracy. The problem is the over-abundance of s---ty gonzo companies. Notice the companies who built their brands on quality are doing just fine. It's the ones who built on foundations of sand and figured, "It won't hurt if we keep putting out s---ty movies with ugly girls." Last time I checked Evil Angel is doing just fine. Anabolic and Diabolic are healthy (and any decline in numbers are due to a dropoff in quality... thanks Chico). Jules Jordan is selling as many DVDs out the door as anything aside from Club Jenna releases starring Jenna herself.

But maybe the public is smarter than we think... that cookie-cutter gonzo isn't that exciting. Fifteen years ago, everyone wanted to copy the "Buttman style" and "Ed Powers style" because it looked so easy. Some of those guys are still around, some are long gone. Some of them are on Showtime. Ten years ago it was the "Anabolic style." Next it was the "Jules Jordan style." Same story.

Sometimes it isn't as easy as it looks to make the whole thing work. But a mix of great product, a good business sense, and a touch of luck never hurt.

The problem started around 2003 when everyone noticed that Jules Jordan (at the time an Evil Angel director/producer) and Vince Vouyer (then at Red Light District), among others, were driving much nicer cars than they were. They thought, "Hmmm... maybe the path to a $130,000 Benz is to shoot hard gonzo and own my titles."

That's great in the 2003 market. But not such a good plan in 2006. It's almost a joke now when you see an AVN ad for a new studio. First you think, "Wow, for someone as tapped-in to the biz as I am, how have I never heard of so many companies?" Then you realize, "It doesn't matter, they'll all be gone in 120 days when the distributors start smelling blood and telling them to go f--- themselves." Somehow I don't see Defiance Films and Vicious Media still around in 2010. Call me Nostrapornus.

Earlier today, Patrick wrote, "I believe the only solution is to follow the model use by Hollywood and the recording industry. Start suing the down-loaders. It won't completely stop the problem but it can make a major impact."

First of all, the music industry (RIAA) and movie industry (MPAA) haven't made a habit out of suing downloaders. Actually, I may be wrong, but I don't think they ever have. They have gone after the uploaders. Big difference.

The adult business needs to succeed where the RIAA and MPAA have failed -- evolve. Though Jack Valenti might not want to hear it, this battle won't be won on Capitol Hill or with "piracy education" in grade schools. It will be won by creating new, profitable, more secure methods of content delivery. That is something the jizz biz has always been very innovative at doing. Remember when the internet was going to destroy the VHS market? It didn't. Porn got bigger than ever. New customers realized they liked it. VHS only died when it was replaced by the DVD.

The VOD market is evolving and becoming lucrative, but that is only part of the puzzle. Vivid just launched a "download-to-own" and "download-to-burn" business model. It may work, it may not. But there's enough creative, smart people in this business that some of these new ideas will work, and will make them very rich. And maybe when it does, they can buy that Benz they've always wanted.

TonyC
Comstock Films

2523 Posts
8/03
Posted - Jun 23 2006 : 2:49PM
croy
Platinum Member

Discovry
4574 Posts
3/04
Posted - Jun 23 2006 : 10:21PM
Calls for consodilation? Probably not, but just economics will force many out of buisness and therefore people will be willing to be bought out. If they don't have a catalog that stands out, nobody will bother. Since so many own their own lines, buying most companies doesn't hold much appeal. Buying a company only gives distribution rights for directors that already have disty deals and the rights to company owned material - stuff made by non-established directors for the most part.
darkside762000
Member

United Kingdom
91 Posts
3/06
Posted - Jun 24 2006 : 4:14AM
I'm trying to figure out whether it's cool or not that he has namechecked Black Widow and American Hardcore, albeit to dismiss them?

One thing's for sure....they need to buy more ads in AVN!

 
Alexander Portnoy
Member

Sydnee Steele, Savanna Samson or None.
275 Posts
12/05
Posted - Jun 24 2006 : 9:01AM
Indeed, Indeed. I think that the jury is still out on this consolidation trend. Can't say I'm all that surprised that Fishbein came down on the pro side. ClubJenna DVD trailers autostart everytime you visit the AVN site. Now that Playboy has its own marketing and advertising outlets if I were running AVN I'd be a little worried about losing the ClubJenna account. But On the other hand, it could be opportunity to do more business with PEI. It's a shrewd and somewhat self-serving move.

Edited by - alexander portnoy on 6/24/2006 5:43:22 PM

Derek117
Senior Member

1605 Posts
1/06
Posted - Jun 24 2006 : 3:05PM
I've observed the ups-and-downs and growth of porn since the late 1980s, and IMO the Playboy/Club Jenna consolidation is the best news for the industry in 10 years.

The modern porn biz, which came to life in the late 1960s as a result of the "free sex" and "counter-culture" movements on the American West Coast, has gotten so far away from it's roots that having a "mainstream" outfit like Playboy come in--and immediately assume a dominent role in the industry--can provide a positive "grounding."

It has been stated on several forums that because of the ability to "produce" a porn video for almost nothing, too many people have jumped into the biz; with the idea of just making the rent & drug money for the month. They sell a couple of hundred copies a month, then go on to make another sexvid.

Problem is, most of these folks don't have the technical training/skills, or creative talent, to produce videos that sexually arouses--so they produce the Donkey Punches and "freak shows." Which, as the porner quoted from the LukeFord site, above, suggest is NOT about sex. Therefore much of this new product alienates a good portion of the porn customer base--like me. I use to regularily buy 4 or 5 sexvids per month; but for the past several years, I buy maybe 4 per year. Thus, the low per/product sales numbers.

Playboy Enterprises has proven over the decades (via magazines, clubs, videos, cable TV, and internet) that they understand "broad-based" sexuality, and how to produce adult product for a mass market. Having them as the 800 Pound Gorilla of the porn industry could very well add a much needed element of "adult" sensibilities back into the "adult" industry.

There will always be a "nitch" market for customers who like "specialty" sexvids (gangbangs, gaping assholes, mass facials, cum swapping, etc.). But what, IMO, has been under-represented for years in the monthly releases are strong product with mass appeal.

Industry Leader Vivid Video has tried to have it both ways: for the past several years they have attempted to produce mass appeal AND gross-out sexvids all in one...and succeeded as neither. Thus their recent move towards no condoms, more gonzo style sexvids, mandatory anal for Vivid Girls, "alt.porn," pairings of Vivid Girls with Rough Sex Performer, Rocco Siffredi, and mandatory IR scenes are all signs that Vivid is abandoning their "mainstream" and "couples" base markets, and is embracing the less erotic, but "rougher sex" approach that dominates the industry today.

Playboy's new partnership with Club Jenna positions them to take away a lions share of Vivid's long-held core customer base. So, the one person in the porn biz who should be having sleepless nights is probably Steve Hirsch.

picman
Senior Member

Nothing says I love you so much as a tongue in the ass.
2884 Posts
1/03
Posted - Jun 24 2006 : 3:43PM
Maybe Vivid came to the conclusion that what they assumed was the mainstream, wasn't, or at least no longer was.
Somebody has to explain to me how Playboy buying Club Jenna puts them in a "dominant" position in porn marketing. Jenna may have been doing very well with her websites, but precious little content has ever seen the light of day in the DVD market. Just another tempest in a teapot as far as I can see.
Derek117
Senior Member

1605 Posts
1/06
Posted - Jun 24 2006 : 5:55PM
[/quote]
Maybe Vivid came to the conclusion that what they assumed was the mainstream, wasn't, or at least no longer was.
Somebody has to explain to me how Playboy buying Club Jenna puts them in a "dominant" position in porn marketing. Jenna may have been doing very well with her websites, but precious little content has ever seen the light of day in the DVD market. Just another tempest in a teapot as far as I can see.
[/quote]

First, the reason why I believe Playboy can be the "dominant"force in the industry. The reason's simple: they have the most recognizable brand name in adult entertainment; a strong presence in all media platforms (print, internet, cable...and now, thru Club Jenna--and their contract girls--sexvid production); they also have lots of money; and, finally, they have a strong corporate "organization"--which is something that is weak in all of the current porn companies, that are still run by a small core of four/five people in each company--many of them relatives (Just like in "Family Business'). All of this will allow Playboy to &quotthe agenda" for the industry...if it chooses to do so.

But my main point (and this speaks to your first comment) is that Playboy has traditionally taken the "high" ground in displaying male/female sexuality. They are very careful not to despict sex acts that show females being (real or pretended) abused. Playboy also shows women as "people" and being an equal sex partner--not just playing to the male "domination fantasy" that is the core of much of today's harder sex acts...that women are on the "receiving" end of.

This "High Road" approach to sexuality is what, IMO, Vivid "use" to stand for--but has recently abandoned in order to continue to make the "quick buck." And because Vivid's current directors/writers no longer have the talent to "consistently" produce high quality feature, couples/mainstream product. In other words: it's NOT that there isn't a market/audience for quality couples features, but rather, there aren't people in the industry who can create them.

Just my opinions.

Edited by - Derek117 on 6/24/2006 5:56:36 PM

DVDwishes
ComX

1060 Posts
7/04
Posted - Jun 24 2006 : 5:57PM
Playboy buying club jenna constitutes there further acquisition of what I still call "softcore" or couples porn. If they got into negations with Elegant Angel or Evasive Angles then maybe they're get some credit cred as a hardcore porn company. Until then they're still playing it safe.
Alexander Portnoy
Member

Sydnee Steele, Savanna Samson or None.
275 Posts
12/05
Posted - Jun 24 2006 : 5:59PM
I own one Club Jenna title 'Nikita's Extreme Idols,' and I also own numerous Vivid titles. And comparatively speaking there's a lot of stuff in the Club Jenna title that I've never seen in a Vivid title or any other studio feature in my entire collection.

If I can barely stomach 'Nikita's Extreme idols.' I bet its going make a lot of playboy stockholders very queasy. While I would like to see porn change at least content wise (I'm not sold on the consolidation argument) in way Derek117 outlined. Let's not jump to conclusions about Vivid's demise. We should began with the likely pasteurization of Club Jenna and go from there.

DVDwishes
ComX

1060 Posts
7/04
Posted - Jun 24 2006 : 8:21PM
If Sony merges with Evil Angel then I'll look at it as more than an attempt for two companies to grab more of the market share. Playboy and club jenna have one thing in common; they cater to couples who want to see adult material together.

When I was in college there was a huge recruiting effort from Playboy just looking for people to work there in different departments. It wasn't uncommon to go talk to a manager, who was a woman, and her have a copy of the magazine splayed open on her desk. Not only copies, but I knew one who had a lifetime subscription. Playboy is cute, user-friendly, adult material. Hef is the only senior citizen who is allowed to have a harem of girls and even women throughout the world think it is cute.

The massive obession with jenna jameson on this board doesn't need to be explained or mentioned yet again. She too gained popularity with her speaker humping in that howard stern movie.

Two soft and cute like adult companies merged. I think this has happened once before and the result was about the same. All it means now is when jenna releases one of those 80 movies that is sitting in the back of her closest there will be more marketing. Not necessarily more profit. Which just returns us to the first statement in this little rant ...

Celtic
Member

220 Posts
2/04
Posted - Jun 24 2006 : 9:54PM
When your interpretation could become reality, porn would be so much more enjoyable... but their is a long way to go.
croy
Platinum Member

Discovry
4574 Posts
3/04
Posted - Jun 24 2006 : 10:59PM
+1 - people who watch porn don't think of Playboy. Nor are features or whatever Club Jenna does constitute what is now the mainstream of porn.
Playboy has always been the safe side of the porn industry (taken in its most general form). Of late they have been losing ground to magazines like Maxim and FHM - magzines with little or no nudity. Of course this may be because they are trying to look like those magazines, which is not their strength. Regardless, I don't think even couples think Playboy when they think porn.

That said, Playboy does have more money and marketing power than an average porn company.

Consolidation is also different from reduction. There is no need for consolidation, just let the weak die. There is little or nothing worth buying - which is what consolidation is all about.

Derek117
Senior Member

1605 Posts
1/06
Posted - Jun 25 2006 : 1:51PM
Not that I want to say: "I told you so" but, as an up-date: the LA Times' (Saturday) article on the Playboy partnership with Club Jenna includes the following:

"...Still, for Vivid, the acquisition means a new competitor. 'It would be kind of like if we [Vivid] started launching a Playboy-esque magazine,' said Vivid co-Chairman Bill Asher..."

Indeed, I predict, very soon we will begin seeing marketing "cross-over" between Playboy's very, very popular website, and those of Club Jenna (CJ), and the Club Jenna Girls. And, speaking of whom...

Since I don't believe that Jesse Capelli or MacKenzie Lee can "anchor" the CJ Girls, either an retired star (Kystal Steal? Tawny Roberts?) will return/sign with CJ, or CJ will recruit an existing contract player from another company. In which case, my money continues to be on Ditigal Playground performer, Jesse Jane making the jump to CJ. Jesse already has a working relationship with Playboy--and a new husband (Rick Patrick, Tawny's ex) who understands that every time you switch companies a contract girl has the opportunity for a better deal, just like in the mainstream job market. He's probably on the phone right now.

 
TonyC
Comstock Films

2523 Posts
8/03
Posted - Jun 25 2006 : 3:13PM
What's missing from this is that, at least in its hey day (I haven't seen a copy recently) Playboy Magazine was every bit as lush and professional as any other high-end magazine, only with tits and ass. I'd bet that in inflation adjusted dollars the average production cost of a mid-seventies PB centerfold (15-20 images) was higher that of a typical Vivid production. It was (is?) a first rate magazine, and the burnish this gave the PB brand survives, if somewhat tarnished, to this day.

By contrast, nothing that Vivid or CJ or any other part of the 'adult industry' has ever produced begins to compare in any way with mainstream movies or TV.

skronker
Notable Legendary Icon

Scopophiliac
9780 Posts
9/02
Posted - Jun 25 2006 : 11:01PM
Wow, AVN is so quick on the draw!
myadultgroups
Deactivated User

Los Angeles
755 Posts
10/04
Posted - Jun 26 2006 : 11:43PM
Don't write the CJ Girls off yet. Only McKenzie has had her movie released. Once each girl has at least two or three releases, then the situation can be re-evaluated. The situation with Krystal Steal leaving was very unfortunate, she would have been the star player on the team, taking some of the workload off Jenna.
Derek117
Senior Member

1605 Posts
1/06
Posted - Jun 27 2006 : 9:17AM
I don't only hold the CJ Girls responsible for the missing "stardom" in the House of Jenna. I believe it is a lack of "front office" know how that accounts for none of the CJ Girls having "broken out" of the pack and established herself as a Future Star. And the Krystal Steal departure, for whatever reasons, confirmed for me the inability/lack of desire on the part of Jenna & Jay to promote/keep an established star (other than Jenna).

Bottom line for me: the Playboy deal is good for Club Jenna, because they're corporate enough to bring in people who "get things done"--and maybe then one or more of the CJ Girls will break out.

-Kelly-
Senior Member

2517 Posts
5/03
Posted - Jun 30 2006 : 6:21PM
The State of the Adult Film Market (from today's update at Lukeisback.com):

Production Slowdown

Red Light District is not shooting for six months. I hear Legend is shooting few or no movies over the summer. Agents are telling their talent to take almost any work they can get.

Jack: The real question is will rates come down for all the people getting fat - agents, talent, locations, makeup artists, etc.
Jack: Direct Models has several girls that are $2000+ Jack: when does supply and demand kick in and create a buyer's market?
Jack: Amy Reid is great, but does she really sell $1000 more worth of product than Tory Lane? I doubt it.

Porn Depression

James DiGiorgio writes:

Right now, we’re in a porn depression. Buyers are returning product in record numbers and they’re either extremely slow payers or they’re not paying at all. The halcyon days of cables sales are history and foreign sales are in the toilet as those guys aren’t paying worth a shit either.

Traditionally, porn has always gone into the doldrums in the summer months. But I can’t ever remember the summer slow-down arriving as early or as hard as it has this year. And my observations aren’t merely based on an early summer slow-down. The Justice Department is scaring the crap out of a lot of people. Legend has laid off a significant portion of its workforce. Companies like Red Light and others have either announced a production hiatus or their simply not shooting and just not saying much of anything about not shooting. And at just about every company I interact with, people are complaining that business sucks more than its ever sucked before.

DVD Sales Down

Porn Insider tells Gene Ross:

There's a whole different outlook now among the buyers. People are returning a lot of product and say they're being inundated. There's 350 new releases a week. The buyers are so inundated they've lost their sense of humor and aren't returning phone calls. They're moody and snippy and obnoxious. They're looking to cut back. Guys at Evil Angels used to be able to say you're taking 700 pieces at 15 bucks. But a lot of buyers are saying, fine, I don't want it. It's become interesting. The rumor is that Jack from Legend is back and he's on the phones collecting. How are people surviving for 500 pieces? I hear one porn company owner's brother is over in Amsterdam laundering money for drug dealers and whenever his brother needs a million or two, he sends it to him. Otherwise, a lot of porn businesses are hurting for money. One company had $30,000 in returns this month. Yet more new people are coming into the business and think they're going to get rich.

Edited by - -Kelly- on 6/30/2006 6:22:11 PM

Hardware All-Star Supporter
All-Star Member

Your other left
14595 Posts
3/02
Posted - Jun 30 2006 : 7:27PM
Companies keep getting into the market, and yet, the amount of porn on the shelves that I'm interested in watching has gone down dramatically in the last couple of years. The rush to the edges as a way to carve out market-share has me waving bye-bye to many outfits. The 'disposable starlet' syndrome doesn't improve matters, either.

I know many producers think they need to get fresh faces in to sell movies, but it's "old-timers" like India, Bamboo, Niki Blond, Vanessa Blue and Tiffany Mynx that will make me pick up a title, not some newbie who's only claim to fame is that the shooters aren't bored with her, yet. Aside from Mya Diamond, there's not one new star that can sell a movie to me, and I'm sure many people think that she's shot out.

At one time I thought I would run out of room for my porn collection. Thanks to current trends, I'm no longer very concerned about that.

The Fly Is Open
Member

Where in the hell is my grilled cheese?
575 Posts
3/05
Posted - Jun 30 2006 : 8:02PM
I'm feeling the burnout, too. I'm not in the market to buy DVDs right now, but even if I were, there's not much out there at the moment that stirs my interest, or at least I'm not that interested to sort through all the product that is out there. There's too much of it, most of what's out there isn't of a high quality, and in a direct-to-video industry, I'm not surprised the surplus on the supply side is hurting people right now. This isn't the DVD section at Best Buy, where the films or TV shows have already been produced, generated an audience, and can afford to sit on the shelf for a few months and be sold at a discounted price without the distributor taking a big hit. If the DVD doesn't sell, that's it.
BIGmike
B-I-G-m-i-k-e

2335 Posts
3/01
Posted - Jun 30 2006 : 8:58PM
Porn hit it's peak, people got in for the quick cash, quick cash was made and more people got in. Porn is not hard to find, quality porn is harder to find. And with all these upstart companies, with so many directors turning out the same ol same ol.

The trend of girls coming and going is another thing, you can't have favorites, girls make a few titles and vanish, or they get fake tits and move on.

And I think it's only a matter of time before porn is labeled, prosecuted, or deemed obscene because of it's pedofilic nature. A girl can't fuck on camera at 17 years of age and 364 days. But the exact minute she turns 18, every pornographer is drooling to shoot her first on screen fuck.

- -B -I -G -m -i -k -e, here and there, over and out! - -

skronker
Notable Legendary Icon

Scopophiliac
9780 Posts
9/02
Posted - Jun 30 2006 : 9:07PM
There's a Black Flag album that comes to mind:

The Process of Weeding Out

TonyC
Comstock Films

2523 Posts
8/03
Posted - Jun 30 2006 : 10:54PM
"But more importantly were the simple economics. You can't make a lot of money doing something that anyone can do, and let's face it, the basics of gonzo porn are not rocket surgery. Getting started doesn't take great creative genius or a daunting amount of capital. Sure, there were the masters of the genre, and they did well right up until the end. But with virtually no barriers to entry, more and more the work-a-day gonzo directors were getting squeezed by the glut."
 
-Kelly-
Senior Member

2517 Posts
5/03
Posted - Jul 1 2006 : 3:58AM
The Great Porn Depression (added to Lukeisback later in the day):

Michael at NorthStarAssociates emails:

Hey Luke, I was just reading the info that you posted from Jimmy D. He is on the mark in a lot of ways.

Just after attending Erotica LA it was really depressing to see product being sold sooo cheap. I mean some people were 5 for $10.00 etc. I can tell you a handful of people were a bit upset about it. With talent/production costs going up and DVD prices going down, a manufacturer must sell a lot of units to even make up those costs. The days of moving 10,000 out the door are long behind us (just my opinion). Jenna J and the blockbuster known as Pirates are the only ones that I can really see doing this. The marketing behind Pirates had a nice price tag attached to it as well I am sure. For all the marketing and public relations that went on behind Pirates they deserved to sell the mass units they have sold. My hats off to them. Not too many companies can keep up with that.

It is a buyers market for sure. With so much out there now distributors and retailers are turning a lot of people away. It really becomes an accounting nightmare to add even one more invoice to the over 200 from companies that they deal with already. You really need to have a niche that will catch their attention and that there is a demand for. Myself being a former buyer you really want to give everyone a chance but the market is so saturated with comps and catalog drops and with rock bottom prices how does one compete with that? Drop new release pricing? That only kills the market further and makes the manufacturer have to sell even that many more pieces to break even New release pricing from start up companies I am sure are at an all time low. This is just so they can get the product in to see if it will sell. And with over 300 + new releases coming out every week you really need to have something good or you will get swallowed up by everyone else.

This brings in the payment methodology of some companies. It is what it is. We need them as much as they need us but if you work with them they will work with you. The amount of invoices that flow into a big distributor on a daily basis is amazing. You would need a team of accountants to keep up with it all. 200 plus companies reordering every week. Well you get the picture. You will get paid you just may need to wait a bit more than the terms you have agreed on. I can hear my colleagues commenting on this now. If you cut them off in a lot of ways you will be shooting yourself in the foot because if you don’t ship them unless you are a Jules Jordan or Jenna or one of the big players or even a smaller niche company (that carries a specialized product) a lot of times they could just say c ya and pay you what they owe and never do business with you again. That will hit you as well. There are many different opinions on this subject all I can say is work with them. Especially in this porno depression.

I was approached at Erotica by individuals who wanted to start up a company and were looking for advice. I said, “How much money are you willing to lose?”

I don’t want to discourage anyone’s dream of being a smut peddler / producer / director so I followed up with “You really need some deep pockets, patience, and don’t expect to be in the black anytime soon. Its not a get rich quick business anymore so be ready for a challenge… I wish you success.”

It has become a world of disposable porn. You can walk into any store and find dump bins of 5 for $20.00. You go home and watch it, do your thing and throw it or give it away when you get bored with it and you go back and get more.

It should be an interesting summer.

TonyC
Comstock Films

2523 Posts
8/03
Posted - Jul 1 2006 : 10:20AM
When the meltdown came it wasn't pretty. Almost overnight a $40B/year economic powerhouse became a $1.2B cottage industry. When the bottom fell out, prices for spinner hubcaps and frankenhooker shoes couldn't help but follow – there just weren't enough hip-hop videos being produced to make up the lost ground. And without porn's weight to decide the issue, the HD-DVD vs. Blue Laser question remains unanswered to this day.
The Fly Is Open
Member

Where in the hell is my grilled cheese?
575 Posts
3/05
Posted - Jul 1 2006 : 1:08PM
It is evident that the DVD market, adult or mainstream, is not the profit-maker that everyone thought it was going to be five years ago. It helps Hollywood studios to make films that lost money in their theatrical run break even, and it makes TV distribution companies make a cheap profit on shows that otherwise would be gathering dust in the archives, but the big money still comes from the traditional cash flows in entertainment: box office profits in film, first-run advertising and syndication rights on television. When considering that the number of retail outlets for buying and renting adult DVDs is much smaller than the size of the mainstream market that is used mainly as way for studios to cut losses and make a cheap buck off of a stagnant product, how much money was there really to be made in the adult DVD industry?

Let's face it: heads are going to roll. Smaller companies are going to be run out of business, and even some of the larger companies that lack the foresight to adjust to the shrinking market. There's no safety net for anyone: as crowded as the DVD market is, the saturation of Internet content is many times worse. The money is going to lie in high quality, professionally made productions that will attract more than a niche audience, not what some guy with a DigiCam shot at a Motel 6. This is very clear to anyone that isn't wearing rose-tinted glasses, and it's about time that people change the way they shoot and the way they distribute before the market leaves them behind.

Mike Quasar
Zero Tolerance

Reluctant pornographer
1765 Posts
7/01
Posted - Jul 1 2006 : 1:26PM
+1
bono-ONE All-Star Supporter
All-Star Member

SAMCRO
8571 Posts
8/00
Posted - Jul 1 2006 : 1:53PM
But at least at a Motel 6 they leave the light on which would be helpful to some of those shooting porn these days!
The Fly Is Open
Member

Where in the hell is my grilled cheese?
575 Posts
3/05
Posted - Jul 1 2006 : 8:30PM
Well, I was going to say Super 8, but everything's gone digital.
myadultgroups
Deactivated User

Los Angeles
755 Posts
10/04
Posted - Jul 2 2006 : 12:41AM
Its definitely starting. As a webmaster, I'm seeing alot of gonzo scenes being used on reality porn sites I promote. I heard some gonzo producers were selling scenes to pay sites for $25 a pop.
juha
Senior Member

2752 Posts
3/05
Posted - Jul 2 2006 : 3:42PM
Things will never be the same again even when the quality of the product is raised.

After some years of collecting DVDs every consumer sooner or later comes to the point where he takes a look at his collection and asks himself: "When will I ever watch all these DVDs again? How many DVDs do I really need?"

Apart from some crazy collectors most people reduce their purchases after their collection has grown to a certain extent, may it be 100, 500 or 1000 DVDs.

GiveMeBBW
New Member

4 Posts
7/06
Posted - Jul 2 2006 : 6:23PM
or like, 3.
All Forums > The Porn Pool > The Porn Pool Forum Page 565AVN: Crowded Market Calls for Consolidation

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