Acute Angles

by David Fidelman

Among the things our  public servants are most zealous in protecting us from are sex and drugs – especially sex,  an endeavor in which they’re wholeheartedly supported by public opinion. Strip clubs and adult bookstores are being forced to close, and a commissioner of the FCC is asking the agency’s enforcement bureau to investigate whether the ABC “Victoria’s Secret Fashion Show” violated decency regulations. A respected California cardiovascular surgeon who purchased three Las Vegas strip clubs to help finance his medical research was compelled to sell them by the adverse publicity in the news.

In 1999 the owner of a chain of video stores in Utah County was prosecuted for selling obscene material and faced the prospect of bankruptcy and jail because, in addition to Disney classics he also sold films about the sexual adventures of nurses. He had better luck than the cardiovascular surgeon. His attorney happened to get an idea while looking out of the courtroom window at the Provo Marriott Hotel, sent an investigator to the hotel to record all the sex films that a guest could obtain through the hotel’s pay-per-view channels, and obtained records on how much of them people were buying from their cable and satellite providers. He found out that the people in Utah County, which boasts of being the most conservative area in the nation, were especially large consumers of the same videos that prosecutors labeled obscene and illegal. And far more of them were getting their adult movies over the air or from cable than from the video stores. It took only a few minutes for the jury to bring in a verdict of not guilty on all charges.

The case of the cardiovascular surgeon and the video store owner illustrate the wide gap between perception and reality. On close examination, it turns out that there’s far more to sex than meets the eye. Some of  America’s largest and most respected companies are making vast sums of money from the videos and films that were available at the Provo Marriott. General Motors, AT&T, Time Warner, EchoStar, Liberty Media, Marriott International, Hilton, On Command, LodgeNet Entertainment, the News Corporation are among the companies that have a big financial stake in adult films, either directly or through their subsidiaries. The companies say they’re responding to a huge personal need, that there’s a growing American market that wants pornography in the home. They say that despite the fact that this material isn’t marketed, revenue-wise it’s one of their biggest moneymakers.

Modern technology is mainly responsible for bringing sex as a spectator sport into the financial big leagues. In the past, someone would have to go to the seedy parts of town to find hard-core adult films or bookstores. Technology changed all that. First came the VCR. A single film, “Deep Throat” generated more than $100 million in sales. The adult industry’s decision in the early 1980’s to release their videos in the VHS format is credited with killing Betamax. There are now nearly 10,000  adult movies made every year, and record and video store chains stock up to 500 titles in their erotic category.

Cable and the internet expanded the erotic movie market dramatically. The bread and butter of the internet’s early years were raunchy pictures, exchanged and downloaded  by countless computer surfers. In the early days, up to 80 percent of all the internet traffic was adult related. The originators of this material were responsible for a number of technical innovations, from streaming video to shopping cart software. With the internet and pay-per-view cable, now it isn’t even necessary to go to the video store  One of the reasons for the explosion of the adult entertainment business is the anonymity – the ability to get adult content discreetly and in the privacy of one’s own home. It’s easier to order pornography into the home than pizza. Now there’s porn software for hand-held computers, so one doesn’t even have to be at home to view it.

Twenty percent of all American households with a VCR or cable access pay to watch an explicit adult video – and half of them pay to watch frequently. Sex is one of the few things that prompt large numbers of people to disclose their credit card numbers on the internet, and the sex channels are among the few internet operations that actually make money. About one in four internet users, or 21 million Americans, visit a sex site at least once a month and some of the more popular web sites attract over 50 million visits a month.             In hotels, the pay-per-view sex films generate far more money than the beer, wine and snacks sold in the mini-bars. In some hotels, 85 to 90 percent of all profits from in-room spending come from the adult film channels.

With all the millions of Americans viewing adult videos and films, creating a $10 billion a year industry that provides huge profits for some of the country’s largest corporations, it’s interesting to note that sex still hasn’t become respectable.