21 June 2018

Quartz: Porn could have a bigger economic influence on the US than Netflix

In 2012, respondents to an XBIZ poll estimated the industry makes about $5 billion a year. According to Alex Helmy, founder and publisher of adult-entertainment trade publication XBIZ, that figure would likely be over $6 billion if the poll ran again today in 2018.

That said, revenue estimates for the porn industry vary widely. Some believe the industry does not even make $6 billion a year, while others say it makes $10 billion, $15 billion, or even $97 billion. Because most porn firms are privately held, it’s impossible to get a completely accurate estimate, Helmy says. [...]

Despite how frequently people use porn—Pornhub alone claims it racked up 28.5 billion views last year—its economic power remains hidden among the masses. Unlike other forms of entertainment, whose news regularly gets splashed across the front page of consumer publications, rumblings within the adult entertainment industry are typically only followed by niche trade audiences. Due to the taboo shrouding sexual content, a porn company can make hundreds of millions of dollars through monopolistic practices while remaining unknown to most consumers. [...]

The porn industry’s adaptability also transfers to how they do business. Similar to the music industry’s woes, piracy cut into porn’s profits. Porn companies adapted by designing new business models around licensing, educational courses, live camming, crowdsourcing, event hosting, and commerce. Porn also has its own trade publications, industry events, talent agents, and lobbyists.

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