A recent bounced check for $10.39 from Video Wholesalers, also known as 837 Distribution Corporation, has brought financial challenges within the adult industry into focus. This incident highlights broader issues concerning payment processing and the overall financial infrastructure supporting adult entertainment companies.
Financial Hurdles for Adult Businesses
The adult industry faces significant financial obstacles, particularly concerning banking and payment processing. Major financial entities, including banks and credit card companies, often decline to work with adult entertainment businesses. This forces companies in the sector to seek alternative methods for receiving payments.
Cindy Gallop, founder and CEO of MakeLoveNotPorn, has stated that banks, payment processors, and other business entities that refuse to partner with legal adult companies are directly responsible for negative outcomes in the adult industry. This situation impacts various aspects of contemporary porn, from the types of content produced, such as faux-incest videos, to the prevalence of pirated content on major tube sites like Pornhub, and the difficulty in finding what is described as genuine-seeming porn.
The financial structure of the porn industry plays a role in shaping the content consumers watch. The decisions made by scriptwriters, actors, and directors are influenced by this financial framework. The industry's business model has evolved over time. In the 20th century, revenue came from advertisements in magazines and sales of VHS tapes. With the advent of the internet, paid subscription sites became common. However, since 2007, the rise of free "tube" sites has significantly altered the landscape, providing consumers with access to extensive hardcore content without direct payment.
Industry Revenue and Billing Practices
While the adult entertainment world is widely presumed to be a multibillion-dollar industry, concrete accounting to support this figure is often lacking. Companies in the sector have been known to inflate their numbers publicly and deflate them at other times. The same applies to performers' earnings.
The Federal Trade Commission (FTC) has taken action against fraudulent or deceptive billing practices by online porn sites. In one instance, a major provider of sexually explicit material on the internet agreed to issue refunds to consumers whose credit cards were charged without authorization. This highlights issues with illegitimate charges on credit cards from porn sites and other websites, as well as concerns about card numbers being compromised online.
Suggestions have been made regarding credit card security, such as implementing a "merchant block" feature that allows cardholders to block specific merchants and requiring a cardholder-chosen password for usage. These ideas aim to address problems with fraudulent charges and enhance security for online transactions.
Performer Compensation and Industry Secrecy
The topic of money in the adult entertainment world is often shrouded in mystery. There is no specific data available from sources like the Census Bureau regarding the average salaries of adult performers, unlike other careers. Information on compensation is typically gathered through discussions with individuals working across various aspects of the adult industry.
Actress pay in mainstream porn varies widely. Superstar performers, those with name recognition extending beyond adult entertainment, earn considerably more than newcomers or performers known primarily within porn enthusiast circles. The performer's representative or agent also plays a significant role in compensation. Agencies such as LA Direct and Spiegler are noted as top agencies in the industry.
The shift to free tube sites has changed how the porn industry makes money. While pay-to-watch sites still exist, the widespread availability of free content has altered the business model. Some advocates encourage consumers to pay for porn for ethical or health reasons, while others may view free sites as less harmful because they do not directly contribute money to the industry.
Key Facts
- Video Wholesalers, also known as 837 Distribution Corporation, issued a bounced check for $10.39.
- Major financial institutions, including banks and credit card companies, often do not work with legal adult companies.
- The Federal Trade Commission (FTC) has addressed fraudulent billing practices by online porn sites, leading to refunds for unauthorized credit card charges.
- The adult industry's financial structure influences content production, including the prevalence of faux-incest videos and pirated content.
- Compensation for adult performers varies significantly, with superstar actresses earning more than newcomers.
- The business model of the porn industry has evolved from magazine ads and VHS sales to paid subscription sites, and more recently, to widespread free "tube" sites.
