I'm not going to give specific info that some people don't want out there, but there ARE some companies owned by the owner or VP of another company, there are sister companies that share sales teams.

[Link]

Acquisitions, where one company buys another, are one type of consolidation that you see in a lot of industries. It doesn't surprise me that this doesn't happen very often in the porn business because I don't think most of these companies have much enduring value.

What I fail to understand is why more gonzo companies aren't going out of business. That's a type of consolidation that, given the increased competition, I would expect to see more of. It just seems like the pie is getting sliced awfully thin these days. I doubt many people are getting rich.

[Link]

I think for the most part porn with go back to its beginnings with perhaps 12 companies that are in the DVD production game. I dont think the market can support so much competition.

Even top notch companies are selling product for $2 wholesale. How long can that last ?

Michael

PrimeTimeUncensored.com

[Link]

The pricing I personally witnessed on these titles were $12.99 some were even $9.99.

Also, he was a small store with only 1 location. So we arent talking big order discounts.

Michael

[Link]

We didn't consolidate that company into us and absorb it, it was us expanding and doing something different. Until then, we had never taken on a non-established director as a contract director. (Actually, I take that back, we did once... and that didn't work out, so we didn't do it again at Evil Angel.) We had Tristan Taormino, but that was for 2 individual projects, not a directing contract. There were the comic book movies, but again, those were individual projects, not a contract director.

Anyway, there were a few people we wanted to give a try, like Jazz Duro and HJ (Nevaquit), but we just couldn't risk the Evil Angel reputation or charge Evil Angel prices. So we started the Buttman Magazine line (which also of course has a tendency to be ass-centric) and it's proven to be a great training ground for these new guys. And the extra bonus is that we get to sell it a couple of dollars cheaper to the end consumer since it's not as established as our main roster of directors.

So that's a LONG explanation of why a company might start a sister company. We were pretty obvious with ours, but there are other companies who started a more anonymous offbranch company that is harder-edged than their first or maybe ethnic-centered, or maybe feature-oriented, or stuff like that.

[Link]

the only other 3 possibilites are:

1) the distributor received product in lieu of cash and is trying to convert the product into cash.

2) the "distributor" is actually a producer who has sold some of their catalog titles to another producer, and now the "distributor" is looking to move remaining product dirt cheap.

3) the distributor is selling bootlegged/pirated product.

Edited by - arkdvd on 5/23/2007 2:03:51 PM

[Link]

This happens with other brands too, not just RLD.

[Link]

Edited by - ragingbull on 5/25/2007 8:35:54 PM

[Link]